Manitoba Research and Development Tax Credit
MN, Canada
Tax credit for R&D in Manitoba
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJanuary 01, 2024
- grant_single|closingDateDecember 31, 2024
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Construction
- Manufacturing
- Information and cultural industries
- Professional, scientific and technical services
- Educational services
- Health care and social assistance
- Arts, entertainment and recreation
grant_single|grantors
- Government of Manitoba
grant_single|status
grant_card_status|open
grant_single_labels|preview
Tax credit of 15% for research and experimental development projects in Manitoba.
grant_single_labels|projects
Yes, there are several projects and activities eligible for the various grants mentioned.
- Acquiring qualified machinery and equipment for first-time use in manufacturing or processing in Manitoba.
- Producing film and video content in Manitoba with eligible salaries paid to Manitoba residents.
- Publishing Canadian-authored books and promoting environmental sustainability.
- Printing books with new material and meeting specific content requirements.
- Conducting scientific research and experimental development (SR&ED) in Manitoba.
- Hiring co-op students, recent graduates, and apprentices in eligible fields and programs.
- Generating renewable energy using geothermal, solar thermal, and biomass fuel energy equipment.
- Creating licensed child care centres in workplaces.
grant_single|admissibleProjectsExample
$42,000
Saskatoon
Creating a licensed child care center in a workplace
$27,000
Brandon
Producing an educational video series in the film studio
$90,000
Winnipeg
Acquiring advanced machinery for new processing lines in a manufacturing plant
$22,500
Toronto
Hiring co-op students for a research project in biotechnology
$10,500
Winnipeg
Publishing a new book series focusing on environmental sustainability
$26,250
Windsor
Installing a solar thermal energy system in a co-op housing complex
grant_single_labels|admissibility
The Child Care Centre Development Tax Credit stimulates the creation of licensed child care centres in workplaces and is available for corporations that create new spaces. The total benefit is $10,000 per new infant or preschool space created, claimable over five years.
- Corporations must create new child care centres.
- Centres must have new infant or preschool spaces.
- Claimable over five years for a total benefit of $10,000 per new space.
- Available for taxable corporations not primarily engaged in child care services.
- Total number of spaces currently limited to 682 under this program.
- The program may increase the number of spaces over time.
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for the various corporate tax credits offered by the Province of Manitoba. Each tax credit has specific eligibility requirements depending on the nature of the business and the type of activities undertaken.
- Manufacturing companies for the Manitoba Manufacturing Investment Tax Credit
- Film and video production companies for the Manitoba Film and Video Production Tax Credit
- Interactive digital media companies for the Manitoba Interactive Digital Media Credit
- Book publishers for the Book Publishing Tax Credit
- Printing companies for the Cultural Industries Printing Tax Credit
- Companies engaged in scientific research and experimental development for the Manitoba Research and Development Tax Credit
- Employers that provide paid work experiences, including co-op education and apprenticeship programs
- Community enterprises for the Community Enterprise Development Tax Credit
- Small businesses for the Small Business Venture Capital Tax Credit
- Companies offering employee share purchase plans for the Employee Share Purchase Tax Credit
- Businesses manufacturing renewable energy equipment for the Green Energy Equipment Tax Credit
- Corporations creating child care centres for the Child Care Centre Development Tax Credit
grant_eligibility_criteria|eligible_expenses
Yes, the grant includes eligible expenses.
- Salaries for Manitoba residents and qualifying non-resident employees
- Accommodation costs incurred in Manitoba up to $250 per night per unit
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is the Province of Manitoba in Canada.
All the grants are open to companies conducting specific activities in Manitoba:
- Manitoba Manufacturing Investment Tax Credit: Businesses acquiring manufacturing or processing equipment for use in Manitoba
- Film and Video Production Tax Credit: Film production companies performing work in Manitoba
- Book Publishing Tax Credit: Book publishers with a permanent establishment or residence in Manitoba
- Cultural Industries Printing Tax Credit: Manitoba printers
- Research and Development Tax Credit: Corporations conducting R&D in Manitoba
- Paid Work Experience Tax Credits: Employers hiring trainees or recent graduates working in Manitoba
- Green Energy Equipment Tax Credit: Manufacturers and business owners in Manitoba
- Child Care Centre Development Tax Credit: Corporations creating child care centers in Manitoba workplaces
grant_single_labels|criteria
The Evaluation and Selection Criteria for the Manufacturing Investment Tax Credit in Manitoba are:
- Evidence of acquisition of qualified plant, machinery, and equipment for first-time use in manufacturing or processing in Manitoba
- Demonstration of meeting eligibility requirements as per program guidelines
- Compliance with all submission deadlines and documentation requirements
- Financial viability and sustainability of the business applying for the tax credit
- Applicant's alignment with the objectives of the program and contribution to economic growth
grant_single_labels|register
- Step 1: Identify Eligible Equipment
- Ensure the plant, machinery, and equipment you plan to acquire qualify for the Manufacturing Investment Tax Credit in Manitoba.
- Verify that the equipment is for first-time use in manufacturing or processing in Manitoba.
- Check if the equipment falls under class 43.1 or class 43.2, which includes equipment used to produce renewable energy or use energy more efficiently.
- Step 2: Acquire Qualified Equipment
- Purchase the eligible equipment.
- Ensure that the acquisition occurs within the relevant dates for the correct tax credit rate (e.g., on or after July 1, 2019, for an 8% credit).
- Step 3: Track Purchases and Expenditures
- Maintain detailed records of all eligible purchases and expenditures related to the acquisition of the equipment.
- Step 4: Fill Out the Necessary Forms
- Prepare the required forms and documentation for the application.
- Step 5: Submit Application to Canada Revenue Agency (CRA)
- Submit the forms and supporting documents to the Canada Revenue Agency as part of your annual income tax return.
- Include any tax certificates or receipts related to the acquisition of qualified equipment.
- Step 6: Claim the Tax Credit
- Apply the earned tax credit against your Manitoba corporate income tax payable in the year the credit is earned.
- Ensure unused credits are noted for carry-forward (up to 10 years) or carry-back (up to 3 years).
- Step 7: Income Tax Election (Optional)
- Consider making an income tax election to renounce, in whole or in part, the Manufacturing Investment Tax Credit, if it benefits your financial strategy.
- Step 8: Contact Manitoba Tax Assistance Office for More Information (as needed)
- Reach out to the Manitoba Tax Assistance Office for any clarifications or further instructions.
grant_single_labels|otherInfo
The provided information outlines various corporate tax credits available in Manitoba to support different sectors. These credits include incentives for manufacturing, film production, book publishing, and green energy equipment, among others. Additionally, these initiatives target enhancing research, development, and workforce training opportunities in the province.
- Manitoba Manufacturing Investment Tax Credit offers an eight per cent tax credit on qualified plant, machinery and equipment.
- The Film and Video Production Tax Credit provides up to 65% of eligible salaries paid.
- The Book Publishing Tax Credit equals 40% of eligible Manitoba labour costs, with a maximum of $100,000 per year.
- The Cultural Industries Printing Tax Credit offers a 35% refundable credit on salary or wages for employees.
- The Research and Development Tax Credit allows a refund of 15% (20% for expenditures before April 2017) on eligible R&D expenditures.
- The Paid Work Experience Tax Credits provide financial support for employers hiring students, apprentices, and new graduates.
- The Green Energy Equipment Tax Credit promotes renewable energy production and offers up to a 15% credit for eligible equipment.
- The Child Care Centre Development Tax Credit supports the creation of new licensed child care centres, offering $10,000 per new space created.
grant_single_labels|contact
artsbranch@gov.mb.ca
204-948-2115
Apply to this program
Manitoba Manufacturing Investment Tax Credit (MITC)
The Manitoba Manufacturing Investment Tax Credit (MITC) supports businesses by providing an eight per cent tax credit for investments in qualified plant, machinery, and equipment for first-time use in manufacturing or processing in Manitoba. This tax credit is designed to promote economic growth by encouraging companies to modernize their facilities and enhance their production capabilities.
Overview and Eligibility of the MITC
The Manitoba Manufacturing Investment Tax Credit (MITC) is a valuable incentive for businesses looking to enhance their manufacturing or processing capabilities in the province. This tax credit supports companies by providing financial relief on investments in qualified plant, machinery, and equipment intended for first-time use in manufacturing or processing operations in Manitoba.
Eligibility Criteria
To be eligible for the MITC, a business must:
- Be operating in Manitoba and engaged in manufacturing or processing activities.
- Invest in qualified plant, machinery, and equipment for first-time use in their operations.
- Ensure the equipment falls under Class 43.1, which includes equipment used to produce energy from renewable sources or equipment that uses energy more efficiently. Class 43.2 assets also qualify.
It's also important to note that this tax credit is both refundable and non-refundable. For qualified property acquired on or after July 1, 2019, the tax credit is seven per cent refundable and one per cent non-refundable. For property acquired between April 12, 2017, and June 30, 2019, it's eight per cent refundable and one per cent non-refundable.
Application and Benefits
Corporations can earn a nine per cent tax credit for eligible property acquired on or after April 12th, 2017, but before July 1, 2019. For eligible property acquired on or after July 1st, 2019, the tax credit stands at eight per cent. The credit can be applied against Manitoba corporate income tax payable in the year it is earned, with unused credits available for a ten-year carry-forward.
The tax credit is designed to alleviate some of the financial burdens associated with acquiring new manufacturing equipment. By modernizing their facilities, businesses can potentially increase productivity, reduce operational costs, and remain competitive in their industry sectors. Moreover, investments in energy-efficient equipment or renewable energy sources demonstrate a company's commitment to sustainability and can further qualify them for additional benefits under Class 43.1 or Class 43.2.
Process for Claiming the MITC
Businesses looking to claim the MITC must navigate the application process carefully. Here’s a step-by-step guide:
- Verify Eligibility: Before proceeding, ensure the investment qualifies under the specified criteria. Conduct a thorough review of your intended purchases and ensure they align with the defined classes of assets (Class 43.1 and Class 43.2).
- Keep Detailed Records: Maintain comprehensive records of all expenditures related to the acquisition of the qualified plant, machinery, and equipment. This documentation will be critical when claiming the tax credit.
- Complete the Application: Prepare the necessary forms and documentation required for the claim. Ensure that all information provided is accurate and complete to avoid any delays or rejections.
- File with the Canada Revenue Agency (CRA): The MITC is administered by the Canada Revenue Agency (CRA) on behalf of Manitoba. Submit your claim as part of your annual corporate income tax return, attaching all supporting documentation.
Benefits of the MITC for Businesses
The MITC provides several key benefits for businesses in Manitoba:
- Financial Relief: The tax credit helps offset the costs associated with acquiring new manufacturing equipment, making it easier for businesses to invest in modernization efforts.
- Encourages Sustainability: By including equipment under Class 43.1 and Class 43.2, the MITC promotes the use of energy-efficient technologies and renewable energy sources.
- Stimulates Economic Growth: Investment in new manufacturing equipment can lead to increased production capacity, job creation, and overall economic growth in the province.
- Long-Term Benefits: The ten-year carry-forward provision ensures that businesses can utilize the tax credit over an extended period, providing sustained financial support for ongoing investments.
Conclusion
The Manitoba Manufacturing Investment Tax Credit (MITC) is a strategic initiative aimed at fostering economic growth and sustainability within the province's manufacturing sector. By providing significant financial incentives for the acquisition of new, efficient, and renewable energy-based equipment, the MITC helps businesses modernize their operations, enhance productivity, and contribute to a more sustainable future. For more detailed information and assistance with the application process, businesses can contact the Manitoba Tax Assistance Office or visit the provincial government’s finance website.
Contact Information
For additional information and guidance on the MITC, please reach out to:
Manitoba Tax Assistance Office
110A - 401 York Avenue
Winnipeg, MB R3C 0P8
Phone: 204-948-2115 or 1-800-782-0771 (in Manitoba)
Fax: 204-948-2263
E-mail: tao@gov.mb.ca
Website: www.gov.mb.ca/finance/tao/index.html
