Manitoba Research and Development Tax Credit
Highlights
This program is designed for businesses like yours, offering significant tax credits to support your growth. By applying, you can benefit from an eight percent tax credit on qualified plant, machinery, and equipment for first-time use in manufacturing or processing in Manitoba. This credit is seven percent refundable and one percent non-refundable, making it a valuable financial boost.
What's in it for you?
- Immediate financial relief through refundable credits.
- Long-term benefits with unused credits available for a ten-year carry-forward.
- Support for renewable energy and efficient energy use with additional credits for Class 43.1 and 43.2 assets.
Qualifying for this program is straightforward, and approval can significantly enhance your business's financial health. Take advantage of this opportunity to reduce your tax burden and invest in essential equipment, ensuring your business remains competitive and sustainable.
Financing Details
Type of Financing: Tax Credit
Eligible Expenses:
- Salaries for editing, design, and project management.
- Fees to freelancers for editing, design, and research.
- Artwork and development of prototypes.
- Set-up and typesetting costs.
- Non-refundable author advances.
Use of Funds:
- Funds can be used towards eligible Manitoba labour costs.
- An additional 15% bonus is available if the book is printed on paper with at least 30% recycled content.
Restrictions:
- Funds cannot be used for non-qualifying books or non-eligible expenses.
- The maximum tax credit claimable by a publisher is $100,000 per year.
Fees:
- There are no fees associated with this tax credit program.
Qualifications
- Must be a corporation.
- Must acquire qualified plant, machinery, and equipment for first-time use in manufacturing or processing in Manitoba.
- Equipment must be under class 43.1 or class 43.2, which includes equipment used to produce energy from renewable sources and equipment that uses energy more efficiently.
- Must have a permanent establishment in Manitoba.
- Must apply the tax credit against Manitoba corporate income tax payable in the year earned.
Unused credits must be available for a ten-year carry-forward.
Disqualifications:
- Businesses not acquiring qualified plant, machinery, and equipment for first-time use in manufacturing or processing in Manitoba.
- Equipment not under class 43.1 or class 43.2.
- Businesses without a permanent establishment in Manitoba.
- Businesses unable to apply the tax credit against Manitoba corporate income tax payable.
Description
This program offers your business a refundable tax credit of 45% on eligible salaries paid to Manitoba residents and qualifying non-resident employees for film and video productions. This means you can get back almost half of what you pay your staff.
Additional bonuses can increase this credit up to 65%. If you produce three eligible films in two years, you get an extra 10% credit on the third film. If a Manitoba resident is credited as a producer, you get another 5%. Productions in rural or northern areas of Manitoba can earn an additional 5%.
You can choose between a credit based on eligible labour costs or a 30% tax credit on production costs, including labour, goods, and services provided in Manitoba. This can also cover accommodation costs up to $250 per night per unit. This flexibility allows you to maximize your savings and invest more in your projects.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. You will need:
- Financial statements
- Business plan
- Details of intended use of funds (e.g., quotes for equipment or renovation costs)
- Proof of Manitoba residency for employees (if applicable)
- Any other relevant documentation specific to the tax credit you are applying for
Complete the Application Form: Fill out the application form for the tax credit program. Ensure all sections are completed accurately and thoroughly.
Submit the Application: Submit your completed application form along with the required documentation to the appropriate government office or online portal.
Await Review: The relevant government department will review your application. They may contact you for additional information or clarification.
Receive Approval: Once your application is approved, you will be notified of the approval and any next steps.
Claim the Tax Credit: Include the approved tax credit in your annual income tax return. Ensure you follow any specific instructions provided by the government for claiming the credit.
Maintain Records: Keep all documentation and correspondence related to your application and tax credit for future reference or audits.