Manufacturing and processing equipment in Manitoba
A Manitoba corporation buying machinery and processing lines on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Manitoba: 9.0% on small business income and 27.0% at the general rate.
Manufacturing and processing equipment in Manitoba
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,250 | $6,750 | $1,010 |
| $100,000 | $15,000 | $100,000 | $9,000 | $27,000 | $4,039 |
| $250,000 | $37,500 | $250,000 | $22,500 | $67,500 | $10,099 |
Manitoba charges 0% provincial tax on small business income, so the federal 9% rate is the whole story for CCPCs under the limit. Installation and commissioning costs are part of the capital cost. Keep the invoices together so the full amount is claimed.
See also: all assets in Manitoba · Manufacturing and processing equipment in other provinces
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 41-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
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- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
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