Manitoba manufacturing investment tax credit
You can earn this credit on the cost of qualified property. Qualified property includes new and used buildings, machinery, and equipment made available for use in Manitoba mainly for manufacturing or processing goods for sale or lease.
The credit will first be applied to reduce the Manitoba corporation income tax payable. Then you can claim a part of the credit you are entitled to claim in a tax year as a refundable credit.
The non-refundable part of the credit is 1% of the cost of qualified property. For property acquired before April 12, 2017, the rate is 2%.
The refundable part of the credit is 7% of the cost of qualified property. For property acquired before July 1, 2019, the rate is 8%.
|Date of acquisition||Refundable credit rate||Non-refundable credit rate||Total credit rate|
|After June 30, 2019||7%||1%||8%|
|Before July 1, 2019,
and after April 11, 2017
|Before April 12, 2017||8%||2%||10%|
You can carry back an unused non-refundable credit to the 3 previous tax years from the tax year in which you acquired the property. You can also carry forward the unused credit to the 10 tax years that follow the tax year in which you acquired the property.
The acquired date for purposes of this credit is the date that the property became available for use.
Certain green energy equipment is eligible for both the manufacturing investment tax credit and the green energy equipment tax credit.
Under subsection 7.2(7) of the Manitoba Income Tax Act, you can renounce, in whole or in part, the manufacturing investment tax credit earned in the current tax year.
Claiming the credit
File a completed Schedule 381, Manitoba Manufacturing Investment Tax Credit, no later than 12 months after your income tax return is due for the tax year in which the expenditures were incurred. See the schedule for more details.
On line 605 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the non-refundable credit you are claiming.
On line 621 of Schedule 5, enter the amount of the refundable credit you are claiming.
Forms and publications
- Manitoba (provincial site)
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