Closed
Source verified July 8, 2026
British Columbia Manufacturing and Processing Tax Credit
Refundable tax relief for manufacturing investments
Latest source updateLast Update: July 8, 2026Latest change: 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.View change
Latest source update
Last Update: July 8, 2026
Latest change: 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.
Tax credit legislation updated
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.
Funding available
Up to 15% of project cost
Deadline
Closed
Location
British Columbia, Canada
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.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase production or service capacity
- Increase operational productivity
- Optimize production processes
Eligible Funding
- Up to 15% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- British Columbia
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Acquisition of new buildings, machinery and equipment for manufacturing or processing operations in B.C.
Documents Needed
- T2 Corporation Income Tax Return
Official resources
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.
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.
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
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.
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?
Acquisition of new buildings, machinery and equipment for manufacturing or 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.
Is the British Columbia Manufacturing and Processing Tax Credit a grant, loan, or tax credit?
British Columbia Manufacturing and Processing Tax Credit is a Tax Credits