Manitoba Business Tax Credits, Incentives & Deductions (2025 Guide)
Manitoba’s business tax environment is among the most competitive in Canada for many sectors, offering a robust suite of provincial credits, low rates for small businesses, and a strong tradition of support for innovation, manufacturing, agri-business, and creative industries. Manitoba’s general corporate income tax rate is 12%, but eligible small businesses pay 0% on the first $500,000 (see SBD below). Provincial credits are fully stackable with federal programs, which can result in some of the lowest effective tax burdens in the country. Manitoba’s system is especially advantageous for CCPCs, manufacturers, agricultural producers, tech/innovation, and film/media companies. Understanding the interplay of these credits, eligibility criteria, and claim mechanisms is crucial for maximizing after-tax profit and fueling your growth in 2025 and beyond.
- What’s Covered: Manitoba’s key business tax credits, grants, and deductions—plus essential eligibility info
- Who’s Eligible: Manitoba-registered corporations, small businesses, manufacturers, tech startups, film/media, agri-businesses, and more
- Quick Links: Directory, Related Topics
For federal programs, visit: Canada-Wide Business Credits
Manitoba Business Tax Credits Directory
Manitoba Small Business Deduction (SBD) —
- Eligibility: Incorporated CCPCs with active business income and a permanent establishment in Manitoba.
- Limit: $500,000 of active business income per year, shared among associated corporations.
- Rate/Advantage: 0% Manitoba tax on first $500,000 of ABI — one of Canada’s lowest rates when stacked with the federal SBD (9%).
- Claim Steps: Complete Schedule 383 and MB428 with your T2 return; allocate the limit among associated companies; keep records of income, structure, and capital employed.
- Example: Manitoba CCPC with $300,000 ABI pays $0 Manitoba tax on that income. If $600,000 ABI, first $500,000 is at 0%, remainder at 12%.
- Eligibility: Incorporated businesses carrying on eligible SR&ED or digital media work in Manitoba.
- Credits: 15% MRDTC (10% refundable, 5% non-refundable); up to 40% for Interactive Digital Media; stackable with federal SR&ED.
- Claim Steps: File T661, Schedule 31, MB479 (and digital media schedule if applicable); obtain eligibility certificate for digital media.
- Example: $100,000 eligible SR&ED expense: $15,000 MB R&D credit (plus federal refund, often >35%).
- Eligibility: Manufacturers/processors acquiring new/used buildings, machinery, or equipment in MB.
- Credit: 8% MITC (7% refundable, 1% non-refundable) on qualifying investments; accelerated CCA available.
- Claim Steps: File Schedule 380, MB428, MB479 with T2; keep invoices and use documentation.
- Example: $500,000 in new equipment = $40,000 MITC refund/credit.
- Eligibility: MB corporations producing film, TV, or digital media with MB-based staff/talent.
- Credit: Up to 65% of MB labour for film/TV; up to 40% for digital media.
- Claim Steps: Obtain Certificate of Eligibility from MB Film & Music; file MB428/MB479 with T2.
- Example: $200,000 MB labour = up to $130,000 refundable credit (if all bonuses apply).
- Eligibility: MB-registered agri-businesses, farms, processors, and rural companies.
- Programs: Food Development Centre Credit, PST rebates on equipment, Ag Action/CAP grants, rural enterprise credits, green/clean energy grants.
- Claim Steps: File MB428/MB479 with T2; pre-approval for grants; keep receipts and program docs.
- Example: Farm purchases $100,000 equipment, gets PST rebate, accelerated CCA, and energy grant.
- Eligibility: MB employers hiring co-op students, apprentices, or providing paid work experience.
- Credits: CETC (15–25% of wages), Paid Work Experience, Canada-Manitoba Job Grant, Youth Jobs MB, wage subsidies for underrepresented groups.
- Claim Steps: Claim on MB479 with T2; apply for grants before hiring/training; keep payroll and training records.
- Example: Employer hires 2 co-op students, each at $20,000/term, gets $3,000–$5,000 per student back.
- Eligibility: MB corporations, partnerships, and in some cases, individuals.
- Programs: Charitable/political donation credits, property tax rebates, book publishing, childcare centre, export support, and more.
- Claim Steps: File MB479 and related forms with T2; keep receipts, municipal approvals, and proof of expenditures.
- Example: MB company donates $10,000 to charity, receives both provincial and federal credits.
Tip: Most credits require you to file specific Manitoba schedules (MB428, MB479, etc.) with your T2 corporate tax return. For complex claims, consult a Manitoba tax professional.
Stacking Provincial and Federal Credits: Manitoba Scenarios
Manitoba’s business credits are designed to be fully stackable with federal programs. For example:
- Example 1: An incorporated tech startup spends $100,000 on eligible SR&ED. It claims $15,000 Manitoba R&D credit and up to $35,000 federal SR&ED, for a total refund of up to $50,000.
- Example 2: A small manufacturer invests $200,000 in new equipment. It receives a $16,000 MITC (8%), claims accelerated CCA for a large first-year write-off, and may qualify for a PST rebate.
- Example 3: A CCPC earns $400,000 of ABI. It pays $0 Manitoba tax (SBD) and 9% federal, for a combined 9% tax rate—one of the lowest in Canada.
- Example 4: A MB film production pays $300,000 MB labour. It claims a 65% refundable provincial credit ($195,000), and stacks with federal CPTC for even greater benefit.
Always coordinate the timing, eligibility, and documentation for overlapping claims to maximize your total refund.
Frequently Asked Questions (Manitoba Business Credits)
Can I claim both the Manitoba and federal Small Business Deduction?
Yes. Most Manitoba CCPCs can claim both the provincial and federal SBD, subject to the shared $500,000 limit. The claims are automatic if you file all schedules correctly.
How do I claim multiple credits with a single project?
Carefully review the eligibility requirements for each credit. You may need to file multiple schedules (e.g., MB479, Schedule 380, digital media forms, etc.) and maintain clear supporting records to avoid double-claiming.
What if I miss a credit in a prior year?
You can request an adjustment to your T2 return (using the T2ADJ form) for unclaimed credits, usually for up to 3 prior years (see credit-specific carryback rules).
Are there special credits for Manitoba start-ups or tech companies?
Yes. MB offers strong support for startups: SBD at 0% on first $500,000, refundable R&D credits, digital media credits, co-op hiring credits, and access to federal SR&ED, startup grants, and wage subsidies.
Where can I find official forms and guidance?
Visit the Manitoba Finance Business Credits and CRA Business Credits pages for details and forms.