Manitoba Research and Development Tax Credit

Tax credit for R&D in Manitoba

This program targets scientific research and experimental development (as defined for federal purposes) carried on in Manitoba. Corporations may earn a tax credit which can be applied against Manitoba corporate income tax payable in the year earned, with unused credits available for a 20-year carry-forward (previously 10 years) and a three-year carry-back. This income tax credit is administered by the Canada Revenue Agency on behalf of Manitoba. The tax credit rate is 20% for eligible expenditures made before April 12, 2017 and 15% for eligible expenditures made after April 11, 2017.

1. Review eligibility criteria to ensure your corporation has a permanent establishment in Manitoba and that the research and development activities are conducted within the province 2. Identify and compile all eligible research and development expenditures, including current and capital expenditures, ensuring they align with the program's requirements 3. Complete Schedule 380, Manitoba Research and Development Tax Credit, to report eligible expenditures and calculate the credit amount 4. Fill out Schedule 5, Tax Calculation Supplementary – Corporations, entering the non-refundable credit on line 606 and the refundable credit on line 613 as applicable 5. Submit the completed income tax return along with Schedule 380 and Schedule 5 to the Canada Revenue Agency by the due date 6. Ensure all eligible expenditures are identified and submitted no later than 12 months after your income tax return is due for the tax year in which the expenditures were incurred