Cut Your Manufacturing Costs in Newfoundland & Labrador: Meet the MPITC

Quick Reference Checklist

Before diving into the details, confirm if this program is right for you. You might qualify if you can check these boxes:

◽️ Your business operates in Newfoundland & Labrador.
◽️ You're purchasing new manufacturing or processing equipment.
◽️  Equipment will be primarily used in NL (more than 50% of its operating time).
◽️  You have proper documentation ready (see below).
◽️  You understand your T2 return deadline and can file the claim on time.

Program Overview

What Is the MPITC?

The Manufacturing and Processing Investment Tax Credit (MPITC) is a provincial initiative designed to strengthen Newfoundland and Labrador's manufacturing sector. Created under the Income Tax Act, 2000, this program helps businesses modernize their operations by offsetting the cost of new equipment purchases. Think of it as the province investing in your business's growth – when you invest in new manufacturing capabilities, they share some of the cost burden.

Key Benefits

The MPITC offers several advantages that make it worth your attention:

Simple Application Process: Government programs can be intimidating, but the MPITC is relatively straightforward. No consultants or lengthy analysis procedures needed.

Substantial Returns: Get 10% back on qualifying equipment purchases. For a $100,000 investment in new machinery, that's $10,000 in credits.

Cash in Hand: If you're a CCPC, up to 40% of your credit can come back as cash. Using our previous example, that's up to $4,000 in actual refund potential, even without owing taxes.

Stackable Incentives: You can combine this credit with other programs, such as federal capital cost allowance provisions or other provincial grants. For example, you might claim both the MPITC and the Atlantic Investment Tax Credit on the same equipment purchase.

No Minimum Threshold: Whether you're investing $10,000 or $10 million, you can claim the credit. This makes it accessible to businesses of all sizes.

Flexible Timing: With a 20-year forward carry and 3-year back carry option, you can optimize when to use your credits based on your tax situation.

Compatible with Financing: Whether you buy your machinery outright or use a lease-to-own deal, you can generally still claim the MPITC. The key factor is that the equipment is primarily used in NL for manufacturing or processing.

Eligibility Criteria

Business Criteria

To qualify for the MPITC, your business must meet these conditions:

• Location: Your manufacturing operation must be based in Newfoundland and Labrador. Having additional facilities outside the province is fine, but the qualifying equipment must primarily serve your NL operations.
• Tax Status: Your business must be subject to provincial corporate tax. This typically means you're incorporated in Canada and registered to do business in NL.
• Manufacturing Focus: Your company must be engaged in manufacturing or processing activities. This includes traditional manufacturing, food processing, beverage production, and similar industrial activities.
• Size Flexibility: The program works for all business sizes, from small specialty manufacturers to large industrial operations.

Equipment Criteria

Understanding what qualifies is crucial for a successful claim.
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Eligible Equipment Examples:

• Manufacturing machinery (e.g. laser engravers, metal casting furnaces, 3D printers).
• Processing equipment (such as packaging systems).
• Production automation systems (like robotic assembly units).
• Custom manufacturing systems (e.g. specialized fabrication equipment).

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Excluded items:

• Used or refurbished equipment (even if it's in excellent condition).
• Office furniture and fixtures (even if used in a manufacturing facility).
• Non-manufacturing assets (like delivery vehicles or security systems).
• Equipment used primarily outside NL.
• Simple rental equipment (where you never intend to own the asset)

Making Your Claim: Step by Step

Step 1. Collect Paperwork

1. The official MPITC form – T2SCH310 (download here).
2. Purchase or financing agreement.
3. Installation documentation (a Delivery Note and an Installation Certificate).
4. Equipment specifications.
5. Proof of "available for use" date (available in the Installation Certificate).

Step 2. Complete Schedule 310

You'll file Schedule 310 (Code 2201) with your T2 tax return. Here's what you'll need to fill out:

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Form header

write in your company's name, business number and tax year-end.

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Part 1: Eligible property acquired in the current tax year eligible for the credit

For each piece of qualifying equipment write in:

✔ CCA Class Number (Most new manufacturing equipment falls under Class 53.)
✔ Description of the Equipment (e.g., “Laser Welding Machine”)
✔ Eligibility Date – The date the asset was acquired and put into use (the later of the two).
✔ Capital Cost – The purchase price, excluding any government grants or subsidies received for the equipment.

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📌 Note: If you acquired multiple assets, attach a separate schedule listing all eligible purchases.

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Part 2: Total credit available for the year and credit available for carryforward

Calculate your total credit for the year.

• Total Capital Cost (Sum of all eligible equipment costs from Part 1).
• Multiply by 10% to calculate the Newfoundland & Labrador MPITC Earned (enter this on line 215).
• If you had a credit from last year, enter the unused amount in line 210 and add it to your new credit.

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✔ Total Credit Available (line B) = Unused credit from last year (if any) + New credit earned this year.

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Non-Refundable Portion (Line 230)

• This applies first to any Newfoundland & Labrador corporate tax owed for the year.
• Enter the amount you’re using to reduce taxes (whichever is lower: your credit or tax liability).
• Copy this amount to line 508 of Schedule 5 in your T2 return.

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Refundable Portion (For CCPCs only – Line 240)

• If your company is a Canadian-Controlled Private Corporation (CCPC), you can claim up to 40% of the credit as a refund.
• Formula: 40% × your total credit (line 215).
• The refundable amount is reduced by any unpaid taxes, interest, or penalties.
• Enter this refundable amount on line 523 of Schedule 5 in your T2 return.

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✔ Not a CCPC? Enter “0” on line 240.

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Part 3 & 4: Carrying the Credit Forward or Back

If you still have unused credit, you have two options:

1. Carry Back (up to 3 years):
   • You can apply unused credits to reduce taxes from past years (as far back as April 7, 2022).
   • Enter the previous year(s) and the amount to be applied.
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2. Carry Forward (up to 20 years):
   • Any remaining credit can be saved for future tax years.
   • Track your carryforward balance in Part 4 of Schedule 310.
   • The oldest unused credit expires first, so apply older credits before they expire.

Step 3. Submit your Claim

• Review everything with your accountant.
• They will include your claim with your T2 Corporate Tax Return.
• Expect your refund within about 3 months.

Avoid these common mistakes

Ignoring CCA Classes: Make sure your machinery qualifies for a manufacturing-related asset class (often Class 53).

Timing Mix-ups: The equipment must be “available for use” (delivered, installed and operational) in the tax year you’re claiming it.

Poor Documentation: Keep invoices, lease agreements, and any proof of installation in case of an audit.

Missing deadlines: Submit everything (including the provincial schedule) on time with your T2. Missing deadlines can mean missing the credit.

Incorrect lease structure: Standard rentals don’t count; you need a financing or lease-to-own agreement that treats the equipment as your asset.

What Happens Next?

After you file, the province will review your claim. If approved, you either get a reduced tax bill or a direct refund for the credit amount. CCPCs can see an immediate cash benefit if they have no tax owing. Keep an eye on any new legislation, as rates and rules can change.

Why Choose Stygvir Laser Systems for Your MPITC Claim?

Investing in new equipment is a big move—but with Stygvir, you don’t just upgrade your production, you maximize your MPITC tax credit with zero hassle.

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✓ Guaranteed MPITC-Eligible Equipment

Our laser systems are manufacturing & processing assets under CCA Class 53, the exact category the MPITC was designed for. That means no eligibility doubts, no wasted claims, just 10% back.

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✓ We Handle the Paperwork

Filing for MPITC is simple, if you have the right documentation. We provide:

• Installation certificate with "available for use" dates.
• Detailed equipment specifications matching CCA Class 53.
• Delivery records proving purchase and first-use dates.
• Full technical documentation in CRA-friendly format.

With these, your claim process is clear, fast, and stress-free.

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✓ Support Beyond the Sale

We’re not just another vendor, we’re helping customers grow. Whether you need technical support to keep your laser running smoothly or business guidance to maximize your MPITC claim, we’ve got your back.

• Expert tech support for seamless operation.
• CRA-compliant documentation for stress-free filing.
• Claim guidance so you don't leave money on the table.

With Stygvir, you get world-class equipment, expert support, and a partner invested in your success – on both the technical and financial side.

Not a Stygvir Customer Yet?

No worries – this guide is for everyone. If you do need help selecting advanced manufacturing equipment or want a partner who understands how to navigate tax credits, feel free to reach out. We’re here to help you make the most of your investments.