Manitoba Green & Clean Tech Business Tax Credits & Incentives Directory

A practical 2025 guide to all major Manitoba green and clean technology business incentives—eligibility, step-by-step claiming, stacking with federal credits, documentation tips, audit risks, and real-world scenarios for Manitoba innovators and manufacturers.

Introduction: Manitoba's Green Tech Incentive Landscape

Manitoba is a leader in sustainable energy, clean manufacturing, and agri-environmental innovation. The provincial government, together with federal partners, offers a suite of tax credits, grants, and incentives for businesses investing in renewable energy, emissions reduction, cleantech R&D, and sustainable resource development. Whether you are a cleantech startup, a growing manufacturer, a farming operation adopting green tech, or a company commercializing new environmental solutions, leveraging Manitoba’s green incentives can dramatically improve project feasibility, enhance competitiveness, and support the province’s climate goals.

This guide covers all major Manitoba green and clean technology business tax credits and incentives, how to combine them with federal programs, step-by-step application and claim tips, and practical strategies to maximize your refund or grant.

Green Energy Equipment Tax Credit

Status: Ongoing, updated for budget 2025.

Eligibility

  • Manitoba businesses that purchase and install eligible green energy equipment (e.g., geothermal, solar, biomass, wind).
  • Both commercial and manufacturing properties are eligible.
  • Equipment must be new and used primarily in Manitoba.

Claim/Application Process

  1. Purchase and install eligible equipment. Retain all receipts and technical specifications.
  2. Complete Manitoba Schedule 428 and Green Energy Equipment Tax Credit form with your T2 or T1 return.
  3. Attach supporting invoices and a copy of the technical certificate (if available).
  4. Credit is applied to reduce Manitoba corporate or personal tax.

Calculation Example

If a manufacturer spends $100,000 on a new solar photovoltaic system, and the credit rate is 15%, the business receives a $15,000 non-refundable Manitoba tax credit. If not fully used in the year, carry-forward is available.

Documentation Required

  • Copies of purchase contracts, invoices, payment proof.
  • Technical specs confirming green energy status.
  • Proof of Manitoba business operations.

Clean Tech Manufacturing Investment Tax Credit

Eligibility

  • Corporations or partnerships with a permanent establishment in Manitoba investing in new or expanded clean technology manufacturing (including equipment for energy efficiency, waste reduction, or environmental control).
  • Projects must meet minimum investment thresholds (typically $50,000+ in eligible property).
  • Claimant must be the owner and user of the equipment.

Claim/Application Process

  1. Identify and purchase qualifying clean tech manufacturing equipment or make facility upgrades.
  2. Maintain detailed project documentation, including environmental certifications or proof of clean tech status.
  3. Complete the Manitoba Investment Tax Credit schedule with your T2 return.
  4. Attach invoices, contracts, and relevant environmental documentation.

Calculation Example

A Winnipeg manufacturer spends $400,000 on pollution control upgrades. With a 10% credit, the business receives $40,000 off its Manitoba corporate tax bill. If the credit is larger than taxes owed, carry-forward up to 10 years is possible.

Documentation Required

  • Project plan, purchase contracts, environmental compliance certificates.
  • Invoices and proof of payment.
  • Records of Manitoba payroll and employment (if required for bonus rates).

Innovation & Cleantech R&D Tax Credit

Eligibility

  • Corporations carrying out eligible Scientific Research & Experimental Development (SR&ED) projects in Manitoba, including clean tech, environmental innovation, agri-tech, and advanced manufacturing.
  • Must meet CRA SR&ED criteria and file a federal T661 form.
  • Credit is available to both CCPCs (Canadian-controlled private corporations) and other corporations.

Claim/Application Process

  1. Undertake eligible R&D, track all costs (salaries, contracts, materials, overhead).
  2. Complete and file the federal T661 (SR&ED) with your T2.
  3. File the Manitoba R&D Tax Credit schedule (MB428) with supporting documentation, referencing your federal SR&ED claim.
  4. Credit is refundable for CCPCs, non-refundable for others.

Calculation Example

A Manitoba cleantech startup spends $250,000 on R&D salaries and supplies. Provincial R&D credit is 15% ($37,500), and if stacked with the federal SR&ED (up to 35%), the total refund/credit is substantial.

Documentation Required

  • Full SR&ED technical project write-up, payroll records, timesheets.
  • Invoices and contracts for materials/services.
  • Proof of Manitoba location and business number.

Agri-Environmental & Farm Clean Tech Programs

Eligibility

  • Farms and agri-businesses registered/operating in Manitoba.
  • Investments in green infrastructure: solar/wind, water conservation, biogas, precision agriculture, sustainable land management, pollution control.
  • Must meet Manitoba Agriculture program guidelines or apply for Canadian Agricultural Partnership (CAP) grants.

Claim/Application Process

  1. Review open programs at Manitoba Agriculture or CAP website.
  2. Submit detailed project application for grants/cost-share (often pre-approval is required).
  3. For tax credits, file MB428 and relevant forms with your T1 or T2 including supporting receipts.

Calculation Example

A Manitoba farm installs $80,000 in new water-saving irrigation. They receive a 25% CAP grant ($20,000) and claim a 10% Manitoba tax credit on the net cost ($6,000). Federal clean tech credits may also apply.

Documentation Required

  • Grant approval letters, project budgets, completion certificates.
  • Receipts, invoices, and photos of installed systems.
  • Land ownership/lease documents and farm registration.

Federal Clean Tech Tax Credits & Incentives (Stackable in Manitoba)

Manitoba businesses can stack provincial incentives with federal clean tech programs, including:

  • Clean Technology Investment Tax Credit (30%)
  • Clean Hydrogen Investment Tax Credit (15-40%)
  • Carbon Capture, Utilization & Storage (CCUS) Tax Credit (up to 60%)
  • SR&ED: Scientific Research & Experimental Development Tax Credit (15-35%)
  • Canada Greener Manufacturing Grants and Net-Zero Accelerator

See Canada-wide green tech credits for federal details and Manitoba stacking tips.

Stacking Manitoba & Federal Green Tech Incentives

Most Manitoba programs permit stacking with federal tax credits and grants, allowing businesses to maximize non-dilutive funding. However, total government support is usually capped at 75-100% of project costs depending on the program.

Example Scenario

  • Manitoba manufacturer invests $200,000 in new green energy equipment.
  • Receives $60,000 Federal Clean Tech ITC (30%).
  • Receives $20,000 Manitoba Green Energy Equipment Credit (10%).
  • May also receive $30,000 CAP grant (15%).
  • Total support = $110,000 (55%), remainder is business/investor funded.

Always check stacking rules and consult an advisor to avoid exceeding limits or double-claiming costs.

Practical Scenarios & Calculation Examples

Scenario 1: Cleantech Startup in Winnipeg

A Winnipeg startup develops a new air filtration technology. They:

  • Spend $150,000 on R&D salaries (claiming 15% MB R&D credit = $22,500, plus 35% federal SR&ED = $52,500).
  • Purchase $80,000 of specialized green manufacturing equipment (claim 10% MB Investment Credit = $8,000, stackable with federal ITC).
  • Carefully document all project, payroll, and technical activities for audit readiness.

Scenario 2: Rural Manitoba Farm Adopts Solar Power

A farm near Brandon installs a $60,000 solar PV system:

  • Receives a $15,000 CAP grant (25%), net expense $45,000.
  • Claims MB Green Energy Equipment Credit (15% of $45,000 = $6,750).
  • Claims Federal Clean Tech ITC (30% of $45,000 = $13,500).
  • Total incentives: $35,250, net cost to farm: $24,750.

All receipts and grant documentation are retained for audit.

Audit Risk, Common Errors & Documentation Best Practices

  • Top audit triggers: Overstated project costs, claiming ineligible equipment, missing receipts or technical documents, double-claiming costs between grants and credits.
  • Common errors: Not reducing credit claim by the amount of grant received, failing to get pre-approval for grants, missing technical specifications for green equipment, or using ineligible suppliers.
  • Best practices:
    • Keep all invoices, contracts, technical specs, grant approval letters, and photos of installations for minimum six years.
    • Maintain a clear spreadsheet tracking all sources of funding and credits for each project.
    • Respond promptly to CRA or Manitoba Finance audit requests with full documentation.
    • Have an advisor review your claim if stacking multiple credits/grants.

Frequently Asked Questions (FAQ): Manitoba Green Tech Credits

Can I claim a Manitoba tax credit and a federal grant for the same purchase?
Yes, but you must subtract any grant or subsidy received from your eligible expenditure when calculating the credit. No double-claiming on the same dollar spent.
Are Manitoba green tech credits refundable or non-refundable?
Most are non-refundable but may be carried forward up to 10 years. The R&D credit is refundable for CCPCs (Canadian-controlled private corporations).
What documentation do I need for an audit?
Keep all invoices, proof of payment, equipment specs, project plans, grant approvals, and technical reports for at least six years. For R&D, maintain detailed technical and payroll records.
How long do claims take to process?
Tax credits are processed with your annual return (after year-end). Grants may take 3–6 months from application to approval and reimbursement.
Can I stack Manitoba and federal clean tech credits?
Yes, most programs allow stacking, but total government support is usually capped at 75–100% of project costs. Always check each program’s rules and keep clear records.
What if I missed claiming in a previous year?
You may file an adjustment (T2-ADJ or T1-ADJ) for up to 10 years back, provided you have supporting documentation. For grants, retroactive claims are rare but contact the program administrator.

Official Resources & Further Reading

Related Manitoba & Canada Green Tech Pages