Manitoba rental housing construction tax credit

This tax credit is equal to 8% of the capital cost of an eligible rental housing project for which a building permit is obtained after April 16, 2013, and that becomes available for use before 2020.

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 a completed 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

• Schedule 394, Manitoba Rental Housing Construction Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Manitoba (provincial site)

Date modified:

2017-04-20