Manitoba Green Energy Equipment Tax Credit (purchaser and manufacturer)

If you’re a resident of Manitoba and either purchased and installed or manufactured geothermal heat pump systems, solar thermal heating equipment, or biomass fuel energy equipment, you might be able to claim the Manitoba green energy equipment tax credit.

The green energy equipment that qualifies for this tax credit includes:

  • Geothermal ground source heating systems that’re mainly used for heating an actively circulated liquid or gas and is part of a ground source heat pump system that meets the standards set by the Canadian Standards Association. This type of equipment consists of underground piping, energy conversion equipment, energy storage equipment, control equipment, equipment designed to interface with other heating equipment.
  • Solar heating equipment that’s used for heating liquid or gas such as solar collectors, solar energy conversion equipment, solar water heaters, energy storage equipment, control equipment, and equipment that interfaces solar heating equipment with other heating equipment.
  • Equipment that’s used for co-generation of energy using biomass fuel.

All green energy equipment must be new; reconditioned or remanufactured equipment doesn’t qualify for this tax credit. Refer to Manitoba government’s website for more information on what equipment qualifies for this tax credit.

Your tax credit rate depends on two things: whether you’re a purchaser (property-owner) or a manufacturer and the type of green energy equipment you installed or manufactured.

 


Purchasers

If, in 2016, you bought and installed green energy equipment on your property in Manitoba, you can claim the tax credit as follows:  

Geothermal ground source heating systems

  • 7.5% on geothermal heat pumps made in Manitoba plus
  • 15% on the rest of the capital costs of the geothermal system (excluding the heat pump) if the installer is certified by the Manitoba Geothermal Energy Alliance, Inc.

Note: Use this worksheet to calculate the credit amount you can claim for the installation of geothermal ground source heating systems.

Solar thermal energy systems 

10% on capital costs which include the cost of the solar heating system, taxes (such as Manitoba sales tax, federal GST, excise and customs taxes), and other costs related to buying and making the system operational (such as insurance, freight, installation and design)

Biomass fuel energy equipment

15% for gasification and biomass fuel energy equipment installed and used in a business

Note: If you received government assistance for the purchase or installation of the any of the above equipment, the assistance amount will reduce what you can claim for this tax credit.

 


Manufacturers

Manitoba-based manufacturers can claim a 7.5% tax credit on the sale of heat pumps made and sold for use in Manitoba.

 


Where can I claim this?

Follow these steps in H&R Block’s tax software to file your 2016 taxes:

Important: Before you begin, ensure that you told us that you lived in MANITOBA on December 31, 2016.

If you’re a property owner who bought and installed green energy equipment, follow these steps:

  1. On the PREPARE tab, click the OTHER icon. You will find yourself here:



  2. Under the OTHER DEDUCTIONS heading, select the checkbox labelled Manitoba green energy equipment tax credit for purchasers and click Continue.

  3. When you reach the page for your Manitoba green energy equipment tax credit for purchasers, enter your information in the software.

If you’re a manufacturer of green energy equipment, follow these steps:

  1. On the PREPARE tab, click the LET’S TALK ABOUT 2016 icon.

  2. Click the checkbox I worked for myself and select Manitoba as your province of self-employment.

  3. Click the EMPLOYMENT icon. You will find yourself here:



  4. Under the CREDITS AND REBATES heading, select the checkbox labelled Manitoba green energy equipment tax credit for manufacturers, then click Continue

  5. When you reach the page for your Manitoba green energy equipment tax credit for manufacturers, enter your information in the software.

 


Where can I learn more?