Manitoba: increased refunds for SR&ED
R&D Tax Update, Special edition, March 25, 2010
On March 23, 2010, the Minister of Finance, Rosann Wowchuk, announced significant improvements to the 20% provincial scientific research and experimental development (“SR&ED”) tax credit. Previously, as introduced in the 2009 budget, only expenditures undertaken in contracts with an institution in Manitoba were eligible for the refundable tax credit. Starting in 2011, partial refundability for all internal SR&ED performed in Manitoba will be available. In 2011, one-quarter of the provincial tax credit will be refundable and in 2012, one-half of the credit will be refundable. This refundability is intended to serve as an incentive to all companies in the province to increase their innovation activity as the province works through this challenging fiscal period.
Manitoba is one of several provinces to recently introduce refundable provincial credits. Excluding Prince Edward Island, which has no SR&ED tax credit, the only provinces yet to introduce refundability for all companies are British Columbia and Ontario. As noted above, Manitoba had previously introduced a partially refundable tax credit in its 2009 budget for SR&ED activities carried out in specific fields of science under a contract with an institution in Manitoba. This 2010 budget measure is another important step in fostering innovation in Manitoba.
The taxation measures in the 2010 budget can be found at:
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