The following is a comprehensive list of Research and Development and Innovation programs offered by various levels of government, not-for-profits, and other delivery agencies. Tax credits, grants, and cost sharing may be available for a company’s research and development, innovation, and export needs.
Manitoba Manufacturing Investment Tax Credit
The Manufacturing Investment Tax Credit targets manufacturing plants and equipment purchased for first-time use in manufacturing or processing in Manitoba.
Corporations earn a 9% tax credit (for eligible property acquired on or before April 11th, 2017) or 8% tax credit (for eligible property acquired on or after July 1st, 2019) 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 this credit is 7/8 refundable and 1/8 non-refundable with respect to qualified property acquired on or after July 1st, 2019. This credit is 8/9 refundable and 1/9 non-refundable with respect to qualified property acquired on or after April 12, 2017. This program is administered by Canada Revenue Agency on behalf of Manitoba.
In addition to the above, the Manufacturing Investment Tax Credit includes equipment under class 43.1 purchased before December 31, 2020. Class 43.1 includes (for a firm’s own consumption) equipment used to produce energy from renewable sources and equipment that uses energy more efficiently. Class 43.2 Assets also qualify for the credit.
An income tax election allowing taxpayers to renounce, in whole or in part, the Manufacturing Investment Tax Credit is provided.
Green Energy Equipment Tax Credit
Since April 4, 2007, property owners who install geothermal heat pump systems in Manitoba are eligible to receive tax credits from the Manitoba government. A 7.5% tax credit on geothermal heat pumps that are manufactured in Manitoba for use in Manitoba, plus a 15% tax credit on the remainder of the capital costs of the geothermal system (excluding the heat pump) if the installer is certified by the Manitoba Geothermal Energy Alliance, Inc. A further 7.5% tax credit is provided to Manitoba-based manufacturers on the sale of heat pumps that are made in Manitoba and sold for use in Manitoba.
The Green Energy Equipment Tax Credit is extended to solar thermal energy systems purchased for use in Manitoba starting in 2009. Purchasers who install specified solar heating equipment in Manitoba qualify for a refundable 10% Green Energy Equipment Tax Credit on the eligible capital costs.
Innovation Growth Program
The Innovation Growth Program (IGP) provides cost-sharing assistance to small and medium-sized enterprises (SMEs) to assist them in developing and commercializing new innovative products and processes. The IGP will support SMEs in the development and growth stages of the business life-cycle to reduce the risks associated with innovative product development, accelerate growth and strengthen their financial position so they can secure future funding to build their Manitoba-based business.
Under the IGP, firms may apply for a non-repayable grant of up to $100,000 per project to cost-share eligible expenses on a 50/50 basis. The IGP approves projects using a competitive process and quarterly intakes. Only the strongest applications that meet the objectives of the program will be considered for funding.
For more information about Selkirk’s Incentives and Support, please go to Government Programs in our Data and Maps: Site Selection Tables.