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British Columbia Manufacturing and Processing Tax Credit

Refundable tax relief for manufacturing investments

Offered by
Government of British Columbia (BC)
Official source: www2.gov.bc.ca

Source change captured

Funding available
Up to 15% of project cost
Deadline
Open continuously
Location
British Columbia, Canada
Who can apply
Qualifying corporations.
See full eligibility

Overview

The B.C. manufacturing and processing investment tax credit is a refundable 15% credit for qualifying corporations with a permanent establishment in British Columbia to support manufacturing and processing investment. It applies to eligible expenditures for new buildings, machinery and equipment used primarily for manufacturing or processing goods for sale or lease in B.C.

At a glance

Funding available

Maximum share of project costs
15%
Financing goals
  • Increase production or service capacity
  • Increase operational productivity
  • Optimize production processes

Eligible candidates

Location
  • British Columbia
Eligible Industries
All industries
Annual revenue
All revenue ranges
Organisation size
All organization sizes
Audience
All groups
Legal structures
For-profit business

Start applying for this program

Take a practical assessment to gain a clear understanding of how well this program aligns with your specific needs and long-term goals.

Availability timeline

2026
Periods: 1

Latest changes

Tax credit legislation updated

The supporting legislation for the B.C. manufacturing and processing investment tax credit now shows expanded eligibility language, a revised expenditure-limit reference, and an extended applicable period to December 31, 2027.

See more

The supporting legislation for the B.C. manufacturing and processing investment tax credit now uses “eligible corporation” wording, which adds eligible Canadian public corporations to the prior CCPC-only language, and it updates the expenditure-limit reference used in the 10% credit calculation. The applicable period in section 126.1 was also extended from December 31, 2026 to December 31, 2027. The page set now reflects a newer current-to date and updated navigation, but no application instructions or contact details changed.

Official source: www2.gov.bc.ca
July 8, 2026

Eligibility

Who is eligible?

  • Qualifying corporations.
  • Canadian-controlled private corporations with a permanent establishment in British Columbia at any time during the tax year.

Who is not eligible

  • Corporations exempt from B.C. income tax.
  • Corporations controlled by an entity exempt from B.C. income tax.
  • Employee venture capital corporations.
  • Small business venture capital corporations.

Eligible expenses

  • Expenditures incurred to acquire new buildings, machinery and equipment primarily used for manufacturing and processing operations in B.C.

Ineligible Costs and Activities

  • Property that was used before it was acquired by the corporation.
  • Property acquired for use or lease before it was acquired by the corporation.
  • Prescribed excluded property.
  • Expenditures already claimed under this credit in a previous tax year.
  • Expenditures already claimed under the B.C. scientific research and experimental development tax credit in any tax year.

Activities funded

  • Acquisition of new buildings, machinery and equipment for manufacturing or processing operations in B.C.

How to apply

  • Claim the credit with your T2 Corporation Income Tax Return.
  • File the claim no later than 18 months after the end of the tax year in which the eligible property became available for use.

Documents Needed

  • T2 Corporation Income Tax Return

Processing and Agreement

  • A corporation that claimed the tax credit in the tax year or any of the five preceding tax years must repay the credit in the tax year during which it disposes of the eligible property, converts or changes its use so it becomes ineligible, or removes the property from B.C.
  • If the fair market value of the eligible property when the event occurs is equal to or more than the capital cost when the credit was claimed, the corporation must repay the full amount of the tax credit received for the eligible property.
  • If the fair market value of the eligible property when the event occurs is less than the capital cost when the credit was claimed, the repayment is prorated by the fair market value over the capital cost.

Contacts

ITBTaxQuestions@gov.bc.ca
1-250-387-3332

Official sources

B.C. manufacturing and processing investment tax credit

Program guide

BILL 2 - 2026Bill 2 - 2026 Budget Measures Implementation Act, 2026Full Multi - Income Tax Act
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Frequently Asked Questions about the British Columbia Manufacturing and Processing Tax Credit Program

What is the British Columbia Manufacturing and Processing Tax Credit?

The B.C. manufacturing and processing investment tax credit is a refundable 15% credit for qualifying corporations with a permanent establishment in British Columbia to support manufacturing and processing investment. It applies to eligible expenditures for new buildings, machinery and equipment used primarily for manufacturing or processing goods for sale or lease in B.C.

How much funding can be received?

British Columbia Manufacturing and Processing Tax Credit Funds up to 15% of admissible expenses.

What is the deadline to apply?

The program is accepting continuous intake

Who is eligible for the British Columbia Manufacturing and Processing Tax Credit program?

To be eligible for the British Columbia Manufacturing and Processing Tax Credit program, you must: Qualifying corporations may apply. The corporation must be a Canadian-controlled private corporation with a permanent establishment in British Columbia. The property must be acquired and available for use between March 31, 2026 and April 1, 2036.

What expenses are eligible under British Columbia Manufacturing and Processing Tax Credit?

Expenditures incurred to acquire new buildings, machinery and equipment primarily used for manufacturing and processing operations in B.C.

Who can I contact for more information about the British Columbia Manufacturing and Processing Tax Credit?

You can contact Government of British Columbia (BC) by email at ITBTaxQuestions@gov.bc.ca or by phone at 1-250-387-3332.

Where is the British Columbia Manufacturing and Processing Tax Credit available?

The British Columbia Manufacturing and Processing Tax Credit program is available the province of British Columbia.