Manitoba green energy equipment tax credit

• Manufacturer's tax credit
  • geothermal heat pump systems (7.5% of 125%)
  • green energy transmission equipment (8% of 125%)
• Purchaser's tax credit
  • geothermal heat pump systems
    • energy equipment excluding geothermal heat pumps (15%) if the installer is certified by the Manitoba Geothermal Energy Alliance, Inc.
    • heat pump (7.5%)
  • solar heating (10%)
  • gasification equipment (15%)
  • energy co-generation equipment from biomass (15%)

Manufacturer's tax credit

You can claim this credit if you manufacture and sell geothermal heat pumps for use in Manitoba.

Manufacturers can claim a 7.5% tax credit on the adjusted cost of geothermal heat pump systems that meet the standards set by the Canadian Standards Association.

Adjusted cost means an amount equal to 125% of the manufacturer's cost of manufacturing the heat pump.

For tax years starting before July 1, 2023, manufacturers can also claim an 8% tax credit on the adjusted cost of green energy transmission equipment sold before July 1, 2023.

The Manitoba manufacturing investment tax credit includes a credit for green energy transmission equipment.

This credit is refundable, but must first be applied against total taxes payable. It is now permanent.

Purchaser's tax credit

You can also claim this credit if you buy qualifying property that is used to produce energy in Manitoba from a renewable resource. The rate varies with different classes of property and is prescribed by legislation.

Purchasers can claim a credit on geothermal heat pump systems that meet the standards set by the Canadian Standards Association. The tax credit equals the total of:

• 15% of the capital cost of geothermal energy equipment, excluding the cost of the heat pump
• 7.5% of the purchase price of a heat pump that qualifies for the manufacturer's geothermal energy equipment tax credit

Purchasers who install new specified solar heating equipment in Manitoba qualify for a refundable 10% credit on the eligible capital costs (including taxes and costs related to acquiring and making the system operational). The equipment does not include equipment used to heat water for use in a swimming pool or equipment that distributes heated air or water in a building.

The purchaser's credit also includes gasification equipment and certain equipment used for co-generation of energy from biomass that are installed in Manitoba and used in a business. The tax credit rate is 15%.

This credit is refundable, but must first be applied against total taxes payable. It is now permanent.

Claiming the credit

Whether you are the manufacturer or the purchaser, enter the amount of the credit you are claiming in the year on line 619 of Schedule 5, Tax Calculation Supplementary – Corporations.

Forms and publications

• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Manitoba Finance – Corporation Tax Credits
• Manitoba (provincial site)