Manitoba manufacturing investment tax credit

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

You can earn a credit of 10% on qualified property you acquired before January 1, 2012, to reduce Manitoba tax payable. You have to use the qualified property in Manitoba mainly for manufacturing or processing goods for sale or lease.

The definition of qualified property is extended to include new equipment, under Class 43.1 of Part XI of the federal Income Tax Regulations, purchased between April 22, 2003, and December 31, 2011. Qualified property under Class 43.1 that was moved under Class 43.2 as a result of the 2005 federal budget continues to qualify for this credit.

After March 8, 2005, qualifying property includes used buildings, machinery and equipment made available for use in manufacturing or processing goods for sale or lease.

You can carry back an unused credit to the three previous tax years from the tax year that you acquired the property.

You can carry forward to the following 10 tax years an unused credit earned in a tax year ending after 2003, and to the following 7 tax years an unused credit earned in a tax year ending before 2004. The 2010 tax year is the last tax year to which you can carry forward a credit earned in 2003.

For information about the refundable credit, see Manitoba refundable manufacturing investment tax credit.

Claiming the credit

File a completed Schedule 381, Manitoba Manufacturing Investment Tax Credit, no later than 12 months after your income tax return is due for the tax year in which the expenditures were incurred. See the schedule for more details.

On line 605 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit you are claiming.

Forms and publications

• Schedule 381, Manitoba Manufacturing Investment Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Manitoba (provincial site)