Manitoba Manufacturing Investment Tax Credit - is your business eligible? | CFIB
Who can participate?
Qualifying businesses include those that are:
- Primarily engaged in manufacturing, according to the definition of manufacturing in the Income Tax Act (Canada).
- Sell or lease their products to a lessee who is also primarily involved in manufacturing
Which capital investments are eligible?
To qualify for the tax credit:
- Investments in qualified property (buildings, machinery and equipment) must be made after March 11, 1992.
- Qualified property must be used directly in manufacturing.
- If the business has been leasing qualified property, and exercises an option to purchase it after March 8, 2005, the ‘used’ qualified property would be eligible.
|Eligible Investments||Date Acquired|
|New building||After March 11, 1992|
|New addition to building||After March 11, 1992|
|Used building||After March 9, 2005|
|New equipment & machinery||After March 11, 1992|
|New Class 43.1 equipment*||After April 22, 2003|
|Used equipment & machinery||After March 9, 2005|
*As per the federal Income Tax Regulations (Part XI), Class 43.1 includes (for a firm’s own consumption) equipment used to produce energy from renewable sources and equipment that uses energy more efficiently. Class 43.2 assets (previously classified as 43.1) will continue to qualify for the credit.
Corporations earn a tax credit, which can be applied against Manitoba corporate income tax payable in the year earned. Unused credits are available for a ten-year carry-forward and a three-year carry-back (to taxation years ending after March 11, 1992, or after April 22, 2003, for Class 43.1 property).
This credit is 80% refundable and 20% non-refundable for qualified property acquired after June 30, 2013. For property acquired earlier it is 70% refundable and 30% non-refundable.
How do you claim the credit?
The Canada Revenue Agency (CRA) administers this credit on behalf of the province. To learn more: