Green Energy Equipment Tax Credit
Highlights
This program is designed for businesses like yours to support the installation of green energy systems. By participating, you can benefit from significant tax credits, making it easier to invest in sustainable technology.
Why Apply?
- Generous Tax Credits: Receive up to 15% tax credit on geothermal systems and 10% tax credit on solar thermal systems.
- Cost Coverage: Credits cover a wide range of costs, including equipment, installation, and taxes.
- Boost Efficiency: Improve your business's energy efficiency and reduce long-term operational costs.
What's in it for You?
- Financial Savings: Lower your tax burden while investing in new, efficient energy systems.
- Easy Qualification: If your equipment meets the specified standards, you qualify.
- Government Support: This program is backed by the Manitoba government, ensuring reliability and support.
Applying for this program can help you modernize your business, save money, and contribute to a greener future.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- This is a tax credit, so there are no repayment terms or interest rates.
Eligible Expenses:
- Geothermal Heat Pump Systems:
- Invoiced costs of the geothermal system.
- Taxes (Manitoba sales tax, federal Goods and Services Tax, excise and customs taxes).
- Costs related to making the system operational (insurance, freight, installation).
- Solar Thermal Energy Systems:
- Invoiced costs of the solar heating system.
- Taxes (Manitoba sales tax, federal Goods and Services Tax, excise and customs taxes).
- Costs related to making the system operational (insurance, freight, installation, design).
- Biomass Fuel Energy Equipment:
- Invoiced costs of the biomass fuel energy equipment.
- Taxes (Manitoba sales tax, federal Goods and Services Tax, excise and customs taxes).
- Costs related to making the system operational (insurance, freight, installation).
Ineligible Expenses:
- Borrowing costs.
- Equipment used to heat water for swimming pools.
- Equipment that distributes heated air or water in a building.
- Buildings or parts of buildings (except for solar collectors that are not windows and are integrated into a building).
Fees:
- There are no fees associated with claiming this tax credit.
Qualifications
- Must be a property owner in Manitoba.
- Must install a geothermal heat pump system or solar thermal energy system in Manitoba.
- Geothermal heat pump systems must be certified by the Manitoba Geothermal Energy Alliance, Inc.
- Geothermal heat pump systems must meet Canadian Standards Association standards.
- Solar thermal energy systems must meet CSA Standard F378-87 or equivalent.
- Equipment must be new; reconditioned or remanufactured equipment is not eligible.
- Capital costs must be incurred and paid, including taxes, insurance, freight, and installation.
For non-owner-occupied residences, a signed commissioning report by a professional engineer is required for solar thermal energy systems.
Disqualifications:
- Equipment used to heat water for use in a swimming pool.
- Equipment that distributes heated air or water in a building.
- Borrowing costs.
- Buildings or parts of buildings (except for integrated solar collectors that are not windows).
Description
This program offers your business a valuable opportunity to save money on green energy equipment. You can receive tax credits of up to 15% on capital costs for installing geothermal heat pump systems or solar thermal energy systems.
For geothermal systems, you get a 7.5% tax credit on heat pumps made in Manitoba and an additional 15% tax credit on other capital costs if installed by a certified professional. For solar thermal systems, you can receive a 10% tax credit on eligible costs.
These credits cover costs like equipment, installation, taxes, and insurance. However, reconditioned equipment and borrowing costs are not eligible. You can claim these credits through your income tax return, making it easier to invest in sustainable energy solutions for your business.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. These include:
- Invoices for the geothermal or solar thermal system
- Proof of payment for the system and installation
- Certification from the Manitoba Geothermal Energy Alliance, Inc. (if applicable)
- Commissioning report approved by a professional engineer (for non-residential properties)
- Any other government assistance received for the system
Complete the Tax Credit Worksheet: Fill out the Manitoba Green Energy Equipment Tax Credit Worksheet for the installation of your geothermal or solar thermal system.
Submit Your Income Tax Return: Claim the tax credit through your income tax system. This can be done on:
- Individual T1 income tax return
- Corporate T2 income tax return
- T3 trust income tax and information return
Attach Supporting Documents: Ensure all supporting documents are attached to your tax return. This includes the completed tax credit worksheet and all prepared documentation.
Contact Manitoba Tax Assistance Office: For any questions or additional information, contact the Manitoba Tax Assistance Office at:
- Telephone: 204-948-2115
- Toll-free (in MB): 1-800-782-0771
- E-mail: [email protected]
