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.
Does Manitoba follow the federal rule? Follows the federal rule Manitoba calculates corporate tax on the federal tax base, so the federal deduction would flow through if it is enacted. Details and sources
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.
What sales tax does to your deductible cost in Manitoba
Manitoba charges GST 5% + RST 7%. The federal GST is recoverable through input tax credits and stays out of the capital cost, but the provincial tax generally is not. That non-recoverable tax becomes part of what the asset cost you, so it is deductible along with the asset.
| On a $100,000 purchase | Amount |
|---|---|
| Price before tax | $100,000 |
| Provincial tax at 7%, not recoverable | $7,000 |
| Capital cost you can deduct | $107,000 |
Manitoba retail sales tax is generally not recoverable, so it forms part of the capital cost and is deductible with the asset. Certain farm implements and manufacturing equipment are exempt. Enter the tax-inclusive figure in the calculator to see the full deduction, not the sticker price.
See also: all assets in Manitoba · Manufacturing and processing equipment in other provinces
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