Updated August 2026 · Verified against Government of British Columbia guidelines
✨ New Program ✓ First-Timer Friendly Tax Credit Offset Est. 2026
Tax Credit Provincial Active

Manufacturing and Processing Investment Tax Credit (BC)

Government of British Columbia
Maximum Credit
15% of eligible costs
Active — expenditures incurred between April 1, 2026 and March 31, 2036 are e...
Visit Official Program →
Difficulty
Moderate
Payment
Tax Credit Offset
Trend
New Program
First-Timers
Friendly ✓
Credit rate
15%
Manufacturing and Processing Investment Tax Credit (BC) provides up to 15% refundable tax credit (maximum $300,000 per property; $2M investment cap). Temporary 15% refundable tax credit for Canadian-controlled private corporations investing in new buildings, machinery, and equipment for manufacturing and processing in BC. Active — expenditures incurred between April 1, 2026 and March 31, 2036 are eligible. Claim on T2 return within 18 months of the tax year in which property becomes available for use..
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Eligibility & Details

What this program funds and who can apply

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Program Description

Temporary 15% refundable tax credit for Canadian-controlled private corporations investing in new buildings, machinery, and equipment for manufacturing and processing in BC. Effective April 1, 2026.

Eligibility Requirements

  • Must be incorporated as a Canadian-controlled private corporation (CCPC)
  • Must be filing BC corporate income tax
  • Must be making qualifying capital investments in manufacturing or processing infrastructure in BC
  • Eligible assets: new buildings, machinery, and equipment used for manufacturing or processing
  • Investment must occur on or after April 1, 2026
  • Tax credit is 15% refundable, capped at $300,000 per property on up to $2M of eligible investment
  • Eligible expenditures must not have been claimed under the B.C. scientific research and experimental development (SR&ED) tax credit in any tax year
  • Eligible expenditures must be reduced by any government or non-government assistance received or receivable on the same property before the 15% is applied
Provinces
British Columbia
Industries
Manufacturing Food Beverage Natural Resources Wood Products
Business Stage
Growth Expansion Established

Quick Assessment

Difficulty
Moderate
Competition
Low
First-Timer
Friendly

Funding Details

Amount
15% refundable tax credit (maximum $300,000 per property; $2M investment cap)
Type
Tax Credit
Level
Provincial
Credit rate
Up to 15% of eligible costs
Deadline
Active — expenditures incurred between April 1, 2026 and March 31, 2036 are eligible. Claim on T2 return within 18 months of the tax year in which property becomes available for use.

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Mar 31, 2036
Approval
Entitlement
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

Everything you need to claim BC

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How to claim

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

This credit is non-competitive — any qualifying CCPC making eligible M&P investments in BC gets it automatically through the T2 filing.

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Rejection Pitfalls 8

  • Not a CCPC (public companies, foreign corporations, non-CCPC private companies ineligible)
+7 more pitfalls
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Success Profile

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Evaluation Criteria

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Acquire eligible new M&P property between April 1 Acquire eligible new M&P property between April 1, 2026 (the program start date) and March 31, 2036 (the outer expiry). The eligibility window is now open — properties acquired on or after April 1, 2026 and placed into service in BC are eligible.

Required Documents 7

✓ T2 Corporation Income Tax Return (BC Schedule for provincial credits)
✓ Capital cost schedules documenting eligible property acquisitions

Eligible Expenses 4

Ineligible Expenses 6

Claim timing

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

SR&ED (Federal Investment Tax Credit) B.C. SR&ED tax credit Federal Accelerated Investment Incentive (AII/CCA Class 43) BC training grants (e.g., BC Employer Training Grant) Canada Growth Fund / CCUS investment tax credit
Combined Funding Potential See your total funding potential

Clawback Risk

High Risk

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How BC Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Manufacturing and Processing Investme... 15% Moderate Tax Credit Offset Active — expenditures...
Canada Growth Fund $25,000,000 to $200,000,000+ Hard Equity Ongoing
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Applications accepted...
Ontario Innovation Tax Credit Up to 8% tax credit Moderate Tax Credit Offset Ongoing

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Frequently Asked Questions

Quick answers to the questions founders most often ask about BC

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Can sole proprietors apply for this credit?
No — only Canadian-controlled private corporations (CCPCs) filing BC corporate income tax qualify. Sole proprietors, partnerships, and non-CCPCs are ineligible.
What's the realistic credit amount for a $500K investment?
For $500K eligible investment, the credit is 15% × $500K = $75,000 (capped at $300K max per property). This is typical for mid-sized equipment purchases.
When must I file my claim after making an investment?
File on your T2 corporate return within 18 months of the tax year end in which the property became available for use (e.g., if property became available Dec 31, 2026, file by June 30, 2028).
Why do applications get rejected for property use?
If the building or equipment isn't used primarily for manufacturing/processing (e.g., mixed-use buildings where M&P is a minor function), the credit is denied.
Can I stack this with SR&ED for the same equipment?
Not with the B.C. SR&ED tax credit — an eligible expenditure must not have been claimed under the B.C. SR&ED tax credit in any tax year, so the same equipment cost cannot go through both. The federal SR&ED ITC is a separate credit and may still apply to experimental-development use; have a tax advisor model the interaction and the capital-cost adjustments.

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