Yukon Manufacturing and Processing Profits Tax Credit

Q: How much funding can be received?

Yukon Manufacturing and Processing Profits Tax Credit Funds up to 25% of admissible expenses, capped at $25000 per project.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Yukon Manufacturing and Processing Profits Tax Credit a grant, loan, or tax credit?

Yukon Manufacturing and Processing Profits Tax Credit is a Tax Credits

Q: Who are the financial supporters of the Yukon Manufacturing and Processing Profits Tax Credit?

Yukon Manufacturing and Processing Profits Tax Credit is funded by Government of Yukon, Department of Finance (YK)

Q: Who is eligible for the Yukon Manufacturing and Processing Profits Tax Credit program?

To be eligible for the Yukon Manufacturing and Processing Profits Tax Credit program, you must: • The organization must be an incorporated, private corporation. • The organization must maintain a permanent establishment in the Yukon and have its head office located there. • The organization must pay at least 25% of its salaries and wages to Yukon residents.

Q: Who can I contact for more information about the Yukon Manufacturing and Processing Profits Tax Credit?

You can contact Government of Yukon by email at fininfo@yukon.ca or by phone at 1-866-426-1527.

Q: Where is the Yukon Manufacturing and Processing Profits Tax Credit available?

The Yukon Manufacturing and Processing Profits Tax Credit program is available the province of YT.

Last Update: July 22, 2025

YT, Canada

Tax credit for Yukon manufacturing and processing

At a glance

Eligible Funding

Max. $25,000
Up to 25% of project cost

Timeline

Open Date : July 1, 1999

Financing Type

Tax Credits

Eligible Industries

Manufacturing
Professional, scientific and technical services

Funds Providers

Unspecified

Program status

Open

Overview

Large corporations engaged in manufacturing and processing may claim up to 9.5% on profits earned in Yukon. Small corporations may claim up to 0.5%.

Activities funded

This grant offers benefits specific to the manufacturing and processing sector in Yukon. Eligible activities relate to the operations of corporations engaged in the manufacturing and processing within the territorial jurisdiction of Yukon.

Manufacturing and processing activities conducted by corporations in the Yukon.

Examples of admissible projects:

$ 25,000

Developing a new line of eco-friendly packaging products

$ 20,000

Implementing an energy-saving initiative in the manufacturing process

$ 15,000

Creating a community education program on sustainable manufacturing practices

$ 25,000

Upgrading manufacturing equipment for higher efficiency and reduced waste

$ 25,000

Automating a portion of the assembly line to increase production efficiency

$ 20,000

Launching a recycling initiative to repurpose manufacturing by-products

Eligibility

Eligible Yukon organizations must meet specific criteria to apply for the Business Investment Tax Credit.

Be an incorporated, private corporation.
Maintain permanent establishment in the Yukon.
Have its head office located in the Yukon.
Pay at least 25% of its salaries and wages to Yukon residents.
Not exceed $100 million in assets.

Who is eligible?

Individuals and corporations in Yukon can apply for the various tax credits and benefits outlined. Specific eligibility criteria apply for different credits: Yukon residents can access the Yukon Child Benefit and First Nations Income Tax Credit if residing on settlement land of designated First Nations. For the Business Investment Tax Credit, Yukon residents aged 19 and older can invest in eligible Yukon organizations. Corporations, both large and small, involved in manufacturing and processing in Yukon can apply for related tax credits. Political contributions tax credit is available for contributions to recognized territorial parties or candidates. The research and development tax credit is open to Yukon residents and corporations conducting eligible research in the territory. For a foreign tax credit, individuals or corporations who've paid foreign income tax and are now paying Yukon taxes can apply. Each program or credit has specific criteria that must be met.

Who is not eligible

Some types of companies may not be eligible for the grant. For example, companies that do not meet the residency requirements or asset limits specified in the eligibility criteria may not qualify.

Companies not meeting the residency requirements
Companies exceeding the specified asset limits

Eligible expenses

This grant outlines several tax credit initiatives aimed at supporting individuals and corporations in the Yukon. The eligible activities focus on investments, research and development, manufacturing, and political contributions.

Investing in eligible Yukon organizations to claim the Business Investment Tax Credit.
Claiming the Manufacturing and Processing Profits Tax Credit for larger corporations in manufacturing and processing sectors.
Engaging in scientific research and experimental development to utilize the Research and Development Tax Credit.
Contributing to recognized territorial political parties or candidates to claim the Political Contributions Tax Credit.
Applying for the Foreign Tax Credit when foreign income or profits tax has been paid to avoid double taxation.

Eligible geographic areas

This tax credit is available to corporations manufacturing and processing within the Yukon territory. The eligibility is region-specific, focusing on supporting local economic activities.

Corporations residing in the Yukon.
Companies with manufacturing and processing operations within the Yukon territory.

Selection criteria

There are evaluation and selection criteria for this grant.

Investors must be 19 years of age or older and Yukon residents.
Eligible Yukon organizations must meet specific criteria, including being an incorporated private corporation with a head office located in the Yukon.
The maximum claim for the Business Investment Tax Credit is $25,000 per taxation year.
Unused amounts can be carried back 3 years or forward 7 years.
Eligible organizations can issue shares to investors in exchange for a 25% tax credit on the amount invested.

How to apply

Gather Required Documentation

Ensure you have all necessary personal or corporate tax documents.
Verify eligibility by reviewing specific program requirements.

Access CRA Resources

Visit the CRA website to download necessary forms and publications related to Yukon income tax measures.
Contact CRA for guidance if needed by calling 1-866-426-1527 (within Yukon's 867 area code).

Complete Relevant Application Forms

Complete all required sections of the applicable tax credit forms.
Use forms such as the General Income Tax Package (T1) or Corporation Income Tax Return (T2) as applicable.

Submit Application

Submit the completed tax return or credit form online through the CRA portal or via mail to the designated CRA address.

Confirmation and Follow-Up

Receive confirmation from the CRA upon successful submission.
Retain all records and confirmations for future reference.

Additional information

Here are additional details regarding Yukon income tax measures:

The Yukon child benefit is added to the Canada child benefit, making it a single monthly payment.
The Yukon Business Investment Tax Credit came into effect on July 1, 1999.
For the Research and Development Tax Credit, the credit is refundable if it exceeds your payable income tax.
You need to claim the Research and Development Tax Credit within 12 months of the tax-return filing due date.
Personal income tax rates have specific thresholds and brackets, affecting how much tax Yukoners pay based on their income level.

Contacts

fininfo@yukon.ca

1-866-426-1527

Apply to this program

Frequently Asked Questions about the Yukon Manufacturing and Processing Profits Tax Credit Program

Here are answers to the most common questions about the Yukon Manufacturing and Processing Profits Tax Credit. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.