Manitoba research and development tax credit

You can claim this credit if you have a permanent establishment in Manitoba, and if you made eligible expenditures for research and development carried out in Manitoba.

The amount of the credit is 20% of eligible expenditures. Apply the credit to reduce Manitoba tax that you would otherwise have to pay.

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

You can also 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 before 2004. The 2010 tax year is the last tax year to which you can carry forward a credit earned in 2003.

For eligible expenditures incurred after 2009, the whole credit is refundable if the research and development is carried on in Manitoba under an eligible contract with a qualifying research institute in priority areas.

Note
Manitoba Finance posted on its "Tax News" Web site a list of Educational Institutions Potentially Eligible for Participation in SR&ED Refundable Manitoba R&D Tax Credit Program.

The refundable credit will not be limited to research and development carried on under contract with a research institute in Manitoba. For in house research and development expenditures incurred after 2010, 25% of the tax credit amount (5% of eligible expenditures) will be refundable; for expenditures incurred after 2011, 50% of the tax credit amount (10% of eligible expenditures) will be refundable.

You may renounce the research and development tax credit, for an eligible expenditure incurred during the year, in whole or in part, under subsection 7.3(7) of the Income Tax Act (Manitoba). 

Claiming the credit

File a completed Schedule 380, Manitoba Research and Development Tax Credit with the return.  You must identify the qualified expenditures 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 606 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the non-refundable credit you are claiming.

On line 613 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the refundable credit you are claiming.

Forms and publications

• Schedule 380, Manitoba Research and Development Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Manitoba (provincial site)