Manitoba odour-control tax credit

Note 

This credit is eliminated for expenditures made after April 11, 2017.

You can earn this credit on eligible expenditures made before April 12, 2017, to reduce Manitoba income tax payable.

Eligible expenditures consist of the capital costs of depreciable capital properties that become available for use in the year and were acquired for preventing, reducing, or eliminating nuisance odours that arise or may arise from the use or production of organic waste.

You can earn this credit if odour control is a significant, but not necessarily your primary, purpose for acquiring the eligible capital property. The properties must be unused and must not have been acquired for any use by anyone before. Eligible expenditures are either prescribed by regulation or approved by the minister.

The credit is equal to 10% of the eligible expenditures.

For non-agricultural corporations, it is non-refundable. You can carry back an unused credit to the 3 tax years before the tax year in which you earned the credit. You can also carry forward the unclaimed credit to the 10 tax years that follow the tax year in which you earned the credit. Unused credits may be carried forward on amalgamation or wind-up.

The corporation may be the beneficiary of a trust or a member of a partnership at the end of the trust's or partnership's tax year. If so, it may include its proportionate allocation or share of the trust/partnership's eligible expenditures in computing its odour-control tax credit.

You cannot claim this credit on eligible expenditures used in calculating any other credit.

You can renounce the odour-control tax credit in whole or in part.

Agricultural corporations are eligible for a refundable odour-control tax credit, in whole or in part.

The credit is fully refundable to agricultural corporations effective June 16, 2011. For the 2013 tax year, this includes any amounts not previously claimed or renounced from the previous 10 years.

Claiming the credit

File a completed Schedule 385, Manitoba Odour-Control Tax Credit, with your return. You can claim this credit no later than 12 months after your income tax return is due for the tax year in which the expenditures were incurred. For more details, see the schedule.

On line 607 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the non-refundable amount of the credit you are claiming.

If you are an agricultural corporation, enter the refundable credit you are claiming on line 623 of Schedule 5.

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