Manitoba research and development tax credit

You can claim this credit if you have a permanent establishment in Manitoba, and if you made eligible expenditures for research and development carried out in Manitoba.

The amount of the credit is equal to 15% of eligible expenditures made after April 11, 2017. The rate was previously 20%.

In addition to the corporation’s eligible expenditures, a corporation may claim any repayments of government assistance that are related to eligible expenditures.

The tax credit for research and development carried on in Manitoba under an eligible contract with a qualifying research institute is fully refundable. When eligible research and development is not undertaken under an eligible contract with an institute, 50% of the tax credit amount is refundable, the rest is non-refundable.

Note

Manitoba Finance posted on its website the list of Educational Institutions Potentially Eligible for Participation in SR&ED Refundable Manitoba R&D Tax Credit Program.

You can carry back an unused non-refundable credit to the 3 previous tax years from the tax year that you made the expenditure. You can also carry it forward to the 20 tax years that follow the tax year in which you made the expenditure.

You can renounce the research and development tax credit for an eligible expenditure incurred during the year, in whole or in part, under subsection 7.3(7) of the Income Tax Act (Manitoba).

Claiming the credit

File a completed Schedule 380, Manitoba Research and Development Tax Credit with your return. You must identify the qualified expenditures 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 606 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the non-refundable credit you are claiming.

On line 613 of Schedule 5, enter the amount of the refundable credit you are claiming.

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