Incentives for property, tax abatement’s, tax credits, municipal services and other incentives may be available, if appropriate.
The municipalities are interested in working together to provide affordable infrastructure and services to help businesses succeed.
The Province of Manitoba has a number of economic development programs to help a businesses.
Manitoba Industrial Opportunities Program
MIOP provides highly flexible financial support to encourage expansion of existing Manitoba industry or to encourage new companies to relocate in Manitoba. The program utilizes a repayable secured loan form of financial assistance to support projects that demonstrate the potential to provide various economic benefits including job creation and maintenance. MIOP projects provide a significant positive ratio of direct provincial benefits to direct provincial cost. For more information see Manitoba Industrial Opportunities Program.
Manitoba Commercialization Support for Business Program
The Commercialization Support for Business Program supports entrepreneurship, commercialization, and business development by offering a comprehensive suite of financial assistance and services across the business lifecycle. The Program targets entrepreneurs and businesses seeking to start-up, expand or modernize a business in Manitoba. There are six funding streams offered under the Program: 1) Concept Development; 2) Product Development; 3) Product Commercialization; 4) Market Development; 5) Certification and 6) Intellectual Property. The Program provides 50% cost-shared funding to a maximum of $200,000 depending on the funding stream. For more information see Commercialization Support for Business Program.
Support for Training
Manitoba Jobs and the Economy may offer financial assistance to businesses that are bringing new jobs to Manitoba. The assistance may be used to pay for eligible expenditures related to the development and delivery of appropriate training for new employees. Financial assistance packages under this program are custom-prepared on a client-by-client basis. The amount of assistance provided is based on the creation and maintenance of quality jobs and the economic benefit to Manitoba resulting from the employment provided. In order for the project to be considered, detailed information regarding the project is required to design a tailored assistance package.
Additionally, Apprenticeship Manitoba administers apprenticeship programs for over 50 trades. The Branch coordinates the training and qualifications system that delivers accredited, structured, workplace-based skills and technical training to apprentices, leading to journeyperson certification. For more information please see Apprenticeship Manitoba.
Co-op Education and Apprenticeship Tax Credits
The Co-op Education and Apprenticeship Tax Credits provide qualified employers with a percentage of the wages and salaries paid to certain types of trainee employees and recent graduates working in Manitoba, net of other government funding for that remuneration. Eligible employers include taxable corporations and exempt corporate entities (such as not-for-profit agencies, Manitoba Crown entities, municipalities, universities, schools, and hospitals), which must claim the fully refundable credit in the company financial year in which it is earned. In addition, unincorporated employers can claim the refundable credit on their individual income tax return in the tax year in which it is earned.
For information, contact the Manitoba Tax Assistance Office in Winnipeg at 204-948-2115.
Manitoba Manufacturing Investment Tax Credit
The Manufacturing Investment Tax Credit program targets manufacturing plant and equipment purchased for first-time use in manufacturing or processing in Manitoba. Qualified investments must have been made after March 11, 1992 and before January 1, 2015. Corporations earn a 10% tax credit which can be applied against Manitoba corporate income tax payable in the year earned, with unused credits available for a ten-year carry-forward and a three-year carry-back. Effective January 1, 2008, 70% of earned credits have been refundable in the current tax year. Budget 2013 announced that, for property acquired after June 30, 2013, 80% of the credit is now refundable. This program is administered by Canada Revenue Agency on behalf of Manitoba. For more information, contact Taxation, Economic and Intergovernmental Fiscal Research Division, Manitoba Department of Finance.
R & D Tax Incentive
This program targets scientific research and experimental development (as defined for federal purposes) carried on in Manitoba. Corporations earn a 20% tax credit which can be applied against Manitoba corporate income tax payable in the year earned, with unused credits available for a ten-year carry-forward and a three-year carry-back. This program is administered by Canada Revenue Agency on behalf of Manitoba.
For eligible expenses related to scientific research and experimental development activities undertaken under contract with a qualifying Manitoba research institute (including post-secondary institutions and research institutes), the credit is refundable. Educational Institutions Potentially Eligible for Participation in SR&ED Refundable Manitoba R&D Tax Credit Program
For in-house R&D expenditures (i.e., R&D not undertaken under contract with an institute in Manitoba) one half of the credit is refundable.
For more information contact Taxation, Economic and Intergovernmental Fiscal Research Division, Manitoba Department of Finance.
Nutrient Management Tax Credit
Agricultural producers are eligible for a refundable income tax credit, the Nutrient Management Tax Credit, to facilitate meeting new requirements for water quality protection under The Environment Act.
Eligible entities are agribusiness corporations with a permanent establishment in Manitoba and unincorporated Manitoba-resident individuals engaged in farming, as well as agricultural operations owned by a partnership (in which case the credit is allocated among Manitoba-resident partners).
The credit is equal to 10% of the capital cost of prescribed nutrient management equipment, net of any government assistance received or receivable for it. The assets must be acquired and available for use after April 17, 2012 and before 2016.
Qualifying investments include: solid-liquid separation systems, anaerobic digesters, gravity settling tanks, manure treatment systems, and manure composting facilities; also included are storage tanks suitable for winter manure storage by operators with fewer than 300 animal units.
Data Processing Investment Tax Credit
A refundable corporation income tax credit is available to corporations with a permanent establishment in Manitoba whose primary business activity, including the activities of its affiliates, is data processing. The 2013 Manitoba Budget has broadened this credit to include companies that make a significant incremental investment in data processing equipment in Manitoba, even if they are not engaged primarily in data processing in Manitoba.
This refundable credit is based on the capital cost of new, qualified property purchased or leased after April 17, 2012 and available for use by an eligible company in Manitoba before 2016. Property purchased or leased to replace or improve property that previously qualified for the tax credit is also eligible.
For corporations primarily engaged in data processing in Manitoba, the credit equals, with respect to the capital cost of new, qualified property purchased, leased, and made available for use
- after June 30, 2013 and before 2016: 4.5% on data processing centre buildings and 8% on data processing centre equipment.
- after April 17, 2012 and before July 1, 2013: 4% on data processing centre buildings and 7% on data processing centre equipment.
A taxable Canadian corporation not primarily engaged in data processing in Manitoba, but with a permanent establishment in Manitoba, that acquires at least $10 million of incremental eligible data processing equipment in a taxation year will qualify for an 8% refundable investment tax credit on a narrower range of property. In this case, eligible property includes Class 46 and Class 50 data processing equipment purchased, leased, and made available for use in Manitoba after April 16, 2013 and before 2016.
Small Business Venture Capital Tax Credit Program
The Small Business Venture Capital Tax Credit Program assists eligible small corporations to issue new equity to primarily new investors. Under the program, the small corporation will be able to issue from $100,000 up to a limit of $5,000,000 of new equity that will be eligible investments for the SBVCTC.
The SBVCTC is not a tax benefit for the eligible corporation. It provides a personal tax credit to eligible investors in the corporation. Eligible investors who purchase eligible investments are able to earn a 30% non-refundable provincial tax credit up to an annual limit of $135,000 in provincial tax credits. From the $135,000 of earned provincial tax credits the investor can claim on its income tax return an annual limit of $45,000 in provincial tax credits. Any credits earned but unused in a given year are available, after 2007 and before 2017, to be carried forward for up to 10 years and carried back up to three years.
For more information, contact Financial Services Division, Manitoba Jobs and the Economy.
There are many programs offered by the Federal Government depending on the activity. To learn more about what Federal incentives are available, visit the Government of Canada website.