Manitoba Green Energy Equipment Tax Credit

Insider Tip

The geothermal credit has two tiers: 7. 5% on Manitoba-manufactured heat pumps themselves, PLUS 15% on the remaining system capital costs — but only when the installer is certified by the Manitoba Geothermal Energy Alliance (MGEA). Always verify your contractor's MGEA certification before signing an installation contract; an uncertified installer limits your credit to a lower rate. For businesses, the biomass 15% credit is business-use only and provides strong economics for rural Manitoba operations with wood fuel access (farms, food processors, wood products manufacturers). Any government grants or rebates received for the same equipment reduce the eligible capital cost for this credit calculation — account for this when modeling the effective credit rate.

Rejection Pitfalls 7

• Equipment is reconditioned or remanufactured (not new)
• Geothermal installer not certified by MGEA (results in lower credit rate or disqualification)
• Geothermal heat pump does not meet minimum COP performance ratings

Success Profile

Manitoba business or property owner installing a new geothermal heat pump system (most common), solar thermal system, or biomass boiler/heating system. For geothermal: MGEA-certified contractor engaged. For biomass: business with reliable wood fuel supply (farm, processor, wood manufacturer). Has incurred eligible capital costs in the tax year.

Evaluation Criteria

Entitlement credit — no application review or competitive scoring. Claimant self-assesses eligibility on the tax return using the Manitoba Green Energy Equipment Tax Credit Worksheet. CRA/Revenue Manitoba may audit the claim and verify: equipment newness, MGEA installer certification (geothermal), CSA standards compliance, COP performance ratings, and that equipment is installed and used in Manitoba. Refund issued after standard return processing.

Application Steps

Required Documents 6

Eligible Expenses 5

• Geothermal: underground piping, energy conversion equipment, energy storage, control equipment, heat pump units, and interface equipment meeting CSA standards
• Solar thermal: solar collectors, energy conversion equipment, solar water heaters, storage tanks, control systems, and interface equipment (CSA F378-87 or equivalent)
• Biomass: biomass fuel energy equipment installed in a Manitoba business
• Installation labour costs (included in capital cost for credit calculation)
• Engineering and commissioning costs for non-residential solar systems

Ineligible Expenses 7

• Reconditioned or remanufactured equipment
• Pool heating systems (solar)
• Buildings and distribution systems beyond the energy conversion boundary
• Biomass equipment for residential-only use
• Ongoing fuel costs (biomass fuel purchases)
• Maintenance and repair of existing equipment
• Government grants or rebates received on the same equipment (deducted from eligible capital cost)

Intake Periods

Ongoing — no annual intake windows. Credit claimed on annual income tax return for the year of installation.

Deadline Notes

No fixed deadline — ongoing program. Claim on annual Manitoba income tax return (T1, T2, or T3) for the year in which eligible equipment was purchased and installed. Costs must be incurred and paid during the tax year claimed. Government assistance received reduces the claimable amount.

Ineligible Organizations

• Non-Manitoba residents without Manitoba-based installations
• Organizations using biomass equipment exclusively for residential heating (not business)
• Claimants using reconditioned or second-hand equipment

Compatible Programs

Clawback Risk

None Risk