Manitoba rental housing construction tax credit
A change in the Manitoba rental housing construction tax credit has been announced. See what's new for Manitoba corporations.
This tax credit is equal to 8% of the capital cost of an eligible rental housing project.
Projects in which the application was submitted before March 13, 2018, must be made available for use before 2020. For applications submitted after March 12, 2018, and before 2019, the project must be made available for use before 2021.
Applications are no longer accepted after 2018.
Eligible projects means the construction or conversion from a non-residential use, of a building, group of buildings, or portion of a building, with at least five or more new residential rental units, and with at least 10% of the units qualifying as affordable rental housing units.
The maximum credit is set at $12,000 per eligible rental unit.
Manitoba Housing and Community Development reviews all tax credit applications and will issue a tax credit certificate to a corporation that builds an eligible rental housing project.
Eligible landlords can operate as a for-profit or not-for-profit corporation, but must be residents of Manitoba or have a permanent establishment in Manitoba.
Eligible not-for-profit projects will receive a fully refundable tax credit in the year in which the tax credit is earned, as the project becomes available for use.
The tax credit on for-profit projects will be claimable over a maximum of five years, and is non-refundable.
Claiming the credit
File Schedule 394, Manitoba Rental Housing Construction Tax Credit, with your return. Tax exempt corporations also have to file a return in order to claim this credit.
On line 602 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the non-refundable credit you are claiming. On line 326 of Schedule 5, enter the amount of the refundable credit.
Supporting documents – You do not have to file the certificate with your return. However, keep it in case we ask for it later.
Forms and publications
- Manitoba (provincial site)
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