As a way to help develop the book publishing industry, the government of Manitoba allows publishers based in the province to claim the Manitoba book publishing tax credit for individuals. This credit allows publishers like you to claim up to $100,000 per year, plus a refundable credit for 40% of labour costs.
You can claim this tax credit if you’ve published a book this year and:
- You were a resident of Manitoba at the end of the year
- Your main business is publishing books
- You published at least two books within two years, ending at the end of the year
- At least 25% of the salaries/wages you paid during the year must have been to employees who are residents of Manitoba
The labour costs you can have partially refunded might include money you spent on:
- Editing, design, research or project management, creating artwork, or developing a prototype of the book
- Salaries or wages for your employees
- Contracted Manitoba labour costs or services, not including:
- Marketing
- Promotion
- Legal and accounting costs
- Any part of a salary, wage, or fee that’s determined by profits/revenues
For books you publish on paper that’s at least 30% recycled content, you can claim a credit of 15% for your publishing costs.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
Before you begin, make sure that you told us that you lived in MANITOBA on December 31, 2016.
- On the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I was employed or I worked for myself then select the province or territory of self-employment.
- Click the EMPLOYMENT icon. You'll find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled Manitoba book publishing tax credit (individuals), then click Continue.
- When you arrive at the page for the Manitoba book publishing tax credit (individuals), enter your information into the tax software.
