|Download the budget highlights as a PDF file.|
On March 6, 2014, Manitoba’s Minister of Finance, Jennifer Howard, presented the province’s budget.The budget:
Corporate income tax rates
Manitoba’s corporate income tax rates will remain as follows:
Combined federal/Manitoba corporate rates are in the following table:
|General and M&P income||27%|
|Canadian-controlled private corporations (CCPCs)||active business income to $500,000||11%1 or 23%|
Tax credits extended
The following tax credits are extended three years to December 31, 2017:
Cultural Industries Printing Tax Credit
The definition of an eligible book will be amended as follows:
Co-op Education and Apprenticeship Tax Credit
The Co-op Education and Apprenticeship Tax Credit was scheduled to expire on December 31, 2014, but will be extended indefinitely.
For employers with taxation years ending after 2014, the credit will be enhanced as follows:
In addition, a pre-approval process will no longer be required.
Small Business Venture Capital Tax Credit
As a result of enhancements to the Small Business Venture Capital Tax Credit, for eligible shares issued after 2014:
Personal income tax rates
As announced in Manitoba’s 2013 budget the non-eligible dividend tax credit rate decreased from 1.75% to 0.83%, starting 2014.
The following table takes this change into account, as well as an increase in the top federal rate on non-eligible dividends.
Top combined federal/Manitoba rates
|Ordinary income & interest||
Mineral Exploration Tax Credit
The Mineral Exploration Tax Credit will be extended to flow-through share agreements entered into before April 1, 2018. It was to expire with respect to flow-through share agreements entered into after March 2015.
Community Enterprise Development Tax Credit
For eligible shares issued after 2014, the Community Enterprise Development Tax Credit is enhanced as follows:
As a result of the changes in the first two bullets, the maximum annual tax credit that can be earned by an investor will increase from $9,000 to $27,000.
Seniors’ School Tax Rebate
The school division special levy paid by eligible senior homeowners on qualifying residential properties will be eliminated over three years, from 2014 to 2016.
A rebate (up to $235 in 2014) will be provided to individuals who are 65 years of age or older, or have a spouse or common-law partner 65 years of age or older, who own their principal residence in Manitoba, and who qualify as a Manitoba resident in the property tax year.
Commencing January 1, 2014, petroleum coke used in Manitoba is subject to a new Emissions Tax equal to $10 per tonne of carbon-dioxide-equivalent emissions.
Technical and administrative amendments
The following technical and administrative amendments will be made: