Manitoba Manufacturing Investment Tax Credit (MITC)

Insider Tip

The 7% refundable component makes this credit valuable even for companies with minimal Manitoba tax payable — it generates a cash refund regardless of profitability. Stack with the federal Accelerated Investment Incentive (AII) and Clean Technology Investment Tax Credit where applicable. Note: effective July 1, 2026, certain eligible machinery and equipment will shift to an upfront RST exemption at point of purchase rather than the 7% refundable credit; the 1% non-refundable credit and the credit for buildings remain unchanged. Verify which assets are affected before filing.

Rejection Pitfalls 5

• Assets used less than 90% in qualifying manufacturing or processing activities
• Equipment acquired for distribution, retail, or administrative purposes rather than manufacturing
• Corporation lacks a permanent establishment in Manitoba during the year of acquisition

Success Profile

Manitoba-based manufacturer, food processor, or agri-business acquiring new production equipment, processing machinery, or energy-efficient plant assets. Particularly strong fit for companies expanding capacity with $250K+ capital projects where the 7% refundable component provides meaningful cash flow relief.

Evaluation Criteria

Non-competitive statutory entitlement. CRA evaluates whether the acquired asset qualifies under the Income Tax Act's manufacturing and processing definitions and applicable CCA classes. The key tests are: (1) is the acquiring entity a corporation with a Manitoba permanent establishment, (2) is the property used 90%+ in qualifying manufacturing or processing in Manitoba, and (3) was the property acquired after July 1, 2019 (for the current 8% rate). No competitive scoring.

Application Steps

Required Documents 6

Eligible Expenses 5

• New or used plant, machinery, and equipment acquired for manufacturing or processing in Manitoba
• Buildings acquired or constructed for manufacturing operations in Manitoba
• Class 43.1 equipment (renewable energy generation and energy-efficient production assets)
• Class 43.2 equipment (specified clean energy generation assets)
• Upgrades and improvements to existing eligible manufacturing assets

Ineligible Expenses 6

• Land and land improvements
• Assets used less than 90% in qualifying manufacturing or processing activities
• Office furniture, general-purpose vehicles, and administrative equipment
• Intangible assets (goodwill, patents, licences)
• Assets used primarily for distribution, retail, or non-manufacturing purposes
• Assets already claimed under a prior MITC election in a previous year

Intake Periods

Continuous — credit claimed annually on T2 corporate return within 18 months of fiscal year-end. No intake windows or competitive rounds.

Deadline Notes

Claim with annual corporate T2 return for the tax year in which qualifying assets are acquired. No application window — entitlement-based. File Manitoba Schedule 380 (T2SCH380) within 18 months of fiscal year-end. Unused credits carry forward 10 years.

Open Application Portal →

Ineligible Organizations

• Sole proprietors and unincorporated businesses
• Partnerships (individual partners may not claim this corporate credit)
• Non-profit organizations and registered charities
• Corporations without a permanent establishment in Manitoba

Compatible Programs

Clawback Risk

Medium Risk

If a qualifying asset is disposed of, ceases to be used in Manitoba manufacturing, or its eligible-use percentage falls below 90% within the minimum holding period, a recapture of the credit is triggered and must be added back to Manitoba income tax payable.