Manitoba green energy equipment tax credit

Important notice
Changes have been announced to the Manitoba green energy equipment tax credit. See What's new for corporations.

Manufacturer's tax credit

You can claim this credit if you manufacture and sell in Manitoba after April 4, 2007, and before 2019 qualifying property used to generate energy from a renewable resource.

The credit is equal to an amount not exceeding 10% of the selling price of the qualifying property that is manufactured in Manitoba and sold in the year for residential or commercial use in Manitoba. The rate varies with different classes of property and is prescribed by regulation.

Manufacturers can claim a 5% tax credit on the sale price of ground source heat pump systems that meet the standards set by the Canadian Standards Association.

This credit is refundable, but must first be applied against total taxes payable. There are no carry-back or carry-forward provisions.

Purchaser's tax credit

You can also claim this credit if you buy qualifying property which is used to produce energy in Manitoba from a renewable resource. The credit you can claim cannot exceed 10% of the purchase price, less any credit that an eligible manufacturer has claimed or may claim for the qualifying property. The rate varies with different classes of property and is prescribed by regulation.

Purchasers can claim a credit on ground source heat pump systems that meet the standards set by the Canadian Standards Association. The tax credit is calculated as follows:

• 10% on eligible capital installation costs excluding the cost of the heat pump, plus
• 5% on the cost of the heat pump if it is manufactured in Manitoba.

Purchasers who install new specified solar heating equipment in Manitoba qualify for a refundable 10% credit on the eligible capital costs (including taxes and costs related to acquiring and making the system operational). The equipment does not include equipment used to heat water for use in a swimming pool or equipment that distributes heated air or water in a building.

This credit is refundable, but must first be applied against total taxes payable. There are no carry-back or carry-forward provisions.

Claiming the credit

whether you are the manufacturer or the purchaser, enter the amount of the credit you are claiming in the year on line 619 of Schedule 5, Tax Calculation Supplementary - Corporations.

Forms and publications

• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Manitoba (provincial site)