2011 Manitoba Budget Highlights: Deloitte

Apr 14, 2011 | Corporate Member News

Finance Minister Rosann Wowchuk presented the 2011 Manitoba budget this afternoon. This will be the government’s final budget prior to the October 2011 provincial election. The following is a summary of the tax highlights contained in the budget.

Measures concerning business

  • The Manufacturing Investment Tax Credit provides companies with a 10% investment tax credit on expenditures for both new and used manufacturing assets, such as buildings and machinery. 70% of this credit is refundable. This tax credit was set to expire on December 31, 2011 but has been extended to December 31, 2014.
  • Banks with taxable paid-up capital under $4 billion are exempted from the 3% capital tax, beginning with taxation years ending after April 12, 2011.
  • The Cultural Industries Printing Tax Credit is a new 15% refundable credit for Manitoba printers for costs relating to publishing Canadian-authored, non-periodical books. Eligible costs incurred after April 12, 2011 and before 2015 will qualify for the credit.
  • The Book Publishing Tax Credit has been extended to December 31, 2014, and the list of expenditures eligible for the credit has been expanded.
  • A new Neighbourhoods Alive! Tax Credit has been introduced to provide a non-refundable tax credit on corporate charitable donations to new social enterprises established by charitable organizations. To qualify for the credit, the corporation must make certain minimum donations and provide in-kind services to the enterprise.

Measures concerning individuals

  • The basic personal amounts, spousal amounts and eligible dependent amounts are being increased gradually from $8,134 in 2010 to $9,134 in 2014. The amount for 2011 will be $8,384.
  • The Basic Education Property Tax Credit is increased from $650 to $700 commencing in 2011.
  • The maximum Seniors’ Education Property Tax Credit is increased from $800 to $950 in 2011; it will increase to $1,025 in 2012 and to $1,100 in 2013.
  • A new Children’s Arts and Cultural Activity Tax Credit is introduced, providing a 10.8% non-refundable credit (to a maximum of $54 on $500 of eligible costs) on expenditures relating to various arts and cultural activities such as music lessons, dramatic arts, dance and visual arts, and wilderness activities.
  • The Primary Caregiver Tax Credit is increased by 25% from a maximum annual amount of $1,020 to $1,275 commencing in 2011.
  • The Mineral Exploration Tax Credit, a non-refundable credit of up to 30% of expenditures relating to flow-through shares of qualifying mineral exploration companies, was set to expire in March 2012. This credit has been extended to cover flow-through share agreements entered into before April 1, 2015.
  • The Community Enterprise Development Tax Credit, set to expire on December 31, 2011, will be extended to December 31, 2014. This non-refundable credit provides an investor with a 30% tax credit on maximum annual investments of $30,000 for a maximum credit of $9,000.

Sales tax measures

  • The sales tax exemption on straw pellets used for heating or cooking is expanded to include biomass materials, such as wood, wheat, flax, hemp and corn, commencing May 1, 2011.
  • The tax credit for Manitoba manufacturers of qualifying geothermal heat pumps will increase from 5% to 7.5% for installations after April 12, 2011. The tax credit for purchasers of made-in-Manitoba geothermal heat pumps installed in Manitoba will also increase from 5% to 7.5%. The tax credit for other eligible installation costs for geothermal heating systems will be increased from 10% to 15%.
  • The sales tax exemption for municipalities is expanded to include sandbag-filling services and certain flood protection materials such as sand/salt mixture for sandbags and sandbag ties, effective March 1, 2011.

For further details, we refer you to the Ministry of Finance website.

This publication is produced by Deloitte & Touche LLP as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors. Your use of this document is at your own risk.

About Deloitte:

Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,600 people in 57 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

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