Manitoba manufacturing investment tax credit

You can earn a credit of 10% on the cost of qualified property you acquired before January 1, 2018, to reduce Manitoba tax payable.

This credit is 80% refundable and 20% non-refundable. For property acquired before July 1, 2013, it is 70% refundable and 30% non-refundable.

You have to use the qualified property in Manitoba mainly for manufacturing or processing goods for sale or lease.

Qualifying property includes new and used buildings, machinery, and equipment made available for use in manufacturing or processing goods for sale or lease.

Starting in 2015, certain green energy equipment will be 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.

Refundable credit

The Manitoba manufacturing investment tax 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 maximum refundable part is 80% of your investment tax credit (8% on the cost of qualified property). Before July 1, 2013, the maximum refundable portion was 70%.

Non-refundable credit

You can carry back an unused 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.

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

• Schedule 381, Manitoba Manufacturing Investment Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Manitoba (provincial site)

Date modified:

2017-04-26