Manitoba book publishing tax credit

Important notice
Changes have been announced to Manitoba book publishing tax credit. See What's new for corporations.

You can claim this credit if you:

• are engaged mainly in the business of publishing books or you operate a book publishing business as a university press;
• have a permanent establishment in Manitoba;
• pay at least 25% of the wages and salaries to employees who are Manitoba residents;
• made non refundable monetary advances in the tax year to authors of eligible books; and
• have published at least two eligible books within the two-year period ending at the end of the tax year.

An eligible book is a first edition, non-periodical Canadian-authored publication. It is classified as fiction, non-fiction, poetry, drama, biography or children's. An eligible book must be published after April 9, 2008 and before 2012.

The credit is equal to 40% of eligible Manitoba labour costs, to a maximum of $100,000 per year. Eligible labour costs must be incurred and paid in Manitoba by the publisher after April 9, 2008, and before 2012.

The credit is fully refundable. There are no carry-forward or carry-back provisions.

An additional bonus of 10% on Manitoba printing costs can be claimed if the book is printed on paper with a minimum of 30% recycled content. Eligible printing costs must be incurred and paid within one year of publication of the eligible book.

Claiming the credit

File a completed Schedule 389, Manitoba Book Publishing Tax Credit, with your return.

On line 615 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit you are claiming.

Forms and publications

• Schedule 389, Manitoba Book Publishing Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations

Related Topics

• Manitoba (provincial site)