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Manitoba manufacturing investment tax credit
MN, Canada
Tax credit for manufacturing investments in Manitoba
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Manitoba
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Manitoba Manufacturing Investment Tax Credit provides businesses a total credit rate of up to 10% for investments in qualified property such as buildings, machinery, and equipment used for manufacturing or processing goods in Manitoba. This program aims to support and incentivize manufacturing activities by offsetting corporate income tax and offering refundable credits for eligible equipment and property investments.
grant_single_labels|terms_and_conditions
This tax credit provides a structured financial incentive to support manufacturing investments through both refundable and non-refundable credits. The modalities are designed to optimize the financial utility for corporations investing in qualified property in Manitoba.
- The credit is applied to reduce Manitoba corporation income tax payable first.
- After reducing the income tax, a part of the credit is available as a refundable credit.
- The refundable credit rate is 7% for property acquired after June 30, 2019, and 8% for property acquired before July 1, 2019, and after April 11, 2017.
- The non-refundable credit rate is 1% for properties acquired after April 11, 2017, reducing to 2% for properties acquired before this date.
- Unused non-refundable credits can be carried back to the previous three tax years or carried forward to the next ten tax years.
- Specific provisions are available for certain green energy equipment to benefit from dual credits.
grant_single_labels|projects
The Manitoba Manufacturing Investment Tax Credit is designed to support the acquisition of properties used predominantly for manufacturing or processing goods in Manitoba. The eligible property includes investments in new and used assets crucial for production activities.
- Acquisition of new buildings designated for manufacturing purposes.
- Purchase of used buildings converted for manufacturing or processing.
- Investment in new machinery and equipment for manufacturing goods.
- Procurement of used machinery that supports production processes.
grant_single_labels|admissibility
Eligibility for this tax credit is based on the acquisition and use of qualified property in Manitoba for manufacturing or processing activities.
- The company must have acquired qualified property for use in Manitoba, primarily for manufacturing or processing goods for sale or lease.
- The property in question includes new and used buildings, machinery, and equipment.
- The company must be liable for Manitoba corporation income tax, against which the credit can first be applied.
- The property must have been made available for use in Manitoba during the relevant tax years as specified for different credit rates.
- The company must file the required Schedule 381, Manitoba Manufacturing Investment Tax Credit, within the specified deadline.
grant_eligibility_criteria|who_can_apply
Eligible applicants for the Manitoba Manufacturing Investment Tax Credit include corporations with manufacturing operations in Manitoba. The credit applies to the cost of new or used buildings, machinery, and equipment used mainly for manufacturing or processing goods for sale or lease in the province. Businesses can also apply the credit toward reducing their Manitoba corporation income tax payable before claiming any remaining amount as a refundable credit.
grant_eligibility_criteria|eligible_expenses
The Manitoba Manufacturing Investment Tax Credit covers expenses related to the acquisition of qualified property used for manufacturing or processing.
- Cost of new buildings used primarily for manufacturing or processing in Manitoba.
- Cost of used buildings used primarily for manufacturing or processing in Manitoba.
- Cost of new machinery made available for manufacturing or processing goods for sale or lease.
- Cost of used machinery made available for manufacturing or processing goods for sale or lease.
- Cost of new equipment used primarily for manufacturing or processing goods for sale or lease.
- Cost of used equipment used primarily for manufacturing or processing goods for sale or lease.
grant_eligibility_criteria|zone
This tax credit is specifically targeted for businesses operating within the province of Manitoba, Canada. It supports companies that acquire or utilize eligible manufacturing properties within this geographical area.
- Companies operating in Manitoba, Canada.
grant_single_labels|register
- Step 1: Assess Property Eligibility
- Determine if your property, such as buildings, machinery, and equipment, qualifies for the credit.
- Ensure that the property is used mainly for manufacturing or processing goods in Manitoba.
- Step 2: Determine Credit Rates
- Identify the acquisition date of the property to ascertain the applicable credit rates.
- Calculate the refundable and non-refundable portions of the credit accordingly.
- Step 3: Prepare Required Documentation
- Complete Schedule 381, Manitoba Manufacturing Investment Tax Credit, providing all necessary details.
- Ensure documentation shows the property was available for use in the relevant tax year.
- Step 4: Fill Schedule 5
- Enter the non-refundable credit amount on line 605.
- Enter the refundable credit amount on line 621.
- Step 5: File Tax Returns
- Submit the completed income tax return including Schedule 381 and Schedule 5.
- Ensure submission is done no later than 12 months after the due date of your income tax return.
- Step 6: Consider Credit Carry-back/Carry-forward
- Evaluate if you need to carry back unused non-refundable credits up to 3 tax years.
- Plan to carry forward any unused credits up to 10 tax years, if applicable.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The credit can be applied retroactively to the three previous tax years and carried forward to the next ten tax years.
- Green energy equipment may be eligible for both the manufacturing investment tax credit and the green energy equipment tax credit.
- The date the property becomes available for use is critical for determining eligibility and rates for the credit.
- Applicants have the option under subsection 7.2(7) of the Manitoba Income Tax Act to renounce the manufacturing investment tax credit earned, in whole or in part, for the current tax year.
