In Short
Manufacturers in can claim an 8% tax credit on eligible equipment purchases. For Canadian-controlled private corporations (CCPCs), 7% of the credit is refundable in cash, even if no Manitoba tax is owed, while the remaining 1% is non-refundable and reduces tax liability. Refunds typically process within 6-8 weeks after filing. Keep reading to learn how to take advantage of this program.
Quick Eligibility Checklist
Before diving into the details, confirm if you meet the following requirements:
◽️ Your business is incorporated and operates in Manitoba.
◽️ You’re purchasing new or used manufacturing equipment.
◽️ The equipment will be primarily used in Manitoba (more than 50% of its operating time).
◽️ You have the required paperwork (see below).
◽️ You can file your T2 corporate tax return on time.
Understanding the MITC
The Manitoba Manufacturing Investment Tax Credit (MITC) helps businesses offset the cost of purchasing manufacturing equipment, keeping Manitoba's manufacturing sector competitive. Whether you’re investing in automation, laser welding, or other production tools, MITC reduces your costs and provides direct financial relief.
Why should you care?
✔ Get 8% Back – A $100,000 investment returns $8,000 in tax credits.
✔ 7% Cash Refund for CCPCs – Even if you owe no taxes, you can receive $7,000 in cash back.
✔ Stackable with Other Tax Benefits – Combine with Capital Cost Allowance (CCA) deductions and other tax incentives.
✔ No Minimum Purchase Requirement – Whether you buy $10,000 or $10 million in equipment, you can claim MITC.
✔ 10-Year Carryforward, 3-Year Carryback – Use credits in a way that benefits your tax situation.
✔ Works with Lease-to-Own Financing – You can still claim MITC as long as your business owns the equipment.
Are you Eligible? (Probably yes)
Business Criteria
To claim MITC, your company must:
✅ Be a Canadian-controlled private corporation (CCPC) or another incorporated entity that pays Manitoba corporate tax.
✅ Acquire manufacturing or processing equipment to be used primarily in Manitoba.
✅ File Schedule 381 with your T2 corporate tax return.
What Equipment Qualifies?
- Machinery and tools used in manufacturing, processing, or automation.
- Laser welding machines, CNC machines, industrial printers.
- Food processing or metal fabrication equipment.
- Robotics, conveyor systems, and custom fabrication tools.
Not Eligible
- Used or refurbished equipment.
- Office furniture, vehicles, or security systems.
- Equipment primarily used outside Manitoba.
- Standard rental equipment (unless lease-to-own or financed under your business).
Claiming your MITC: Step-by-step
Step 1: Gather Documentation
- Manitoba MITC Form – T2SCH381 (download here).
- Purchase or financing agreement.
- Installation records (Delivery Note & Installation Certificate).
- Equipment specifications and proof of use.
Step 2: Complete Schedule 381
Be sure to include the following:
- Equipment description (e.g. Laser Welding Machine)
- CCA class number (usually Class 53 for new manufacturing equipment)
- Date equipment was acquired and available for use.
- Total credit calculation:
- Capital cost × 8% = Total MITC Earned
- 7% refundable credit (line 621)
- 1% non-refundable credit (line 605)
Step 3: Submit your Claim
- Submit Schedule 381 alongside your T2 corporate tax return.
- Report amounts on Schedule 5:
- Line 605 – non-refundable credit, applies to Manitoba tax liability.
- Line 621 – refundable credit, direct cash benefit for CCPCs.
- Work with a tax professional to ensure all forms are correctly submitted.
Avoid these common mistakes
Incorrect CCA classifications: Most new manufacturing equipment should be Class 53.
Timing mix-ups: The asset must be installed and operational before claiming.
Incomplete documentation: Keep records of purchases, invoices, and proof of use.
Missing the 12-month deadline: You must file within 12 months of your tax return’s due date.
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 After Filing?
Once submitted, the government reviews your claim. If approved, you’ll receive a reduced Manitoba corporate tax bill, or a direct refund if you are a CCPC with no Manitoba tax owing. Expect a response within 6-8 weeks after submission. We advise that you stay updated on program changes, as tax credit rates and eligibility rules may change.
Why Choose Stygvir Laser Systems for Your MITC Claim?
Investing in new equipment is a big move – but with Stygvir, you don’t just upgrade your production, you maximize your MITC tax credit with zero hassle.
✓ Guaranteed MITC-Eligible Equipment
Our laser systems are manufacturing & processing assets under CCA Class 53, the exact category the MITC was designed for. That means no eligibility doubts, no wasted claims, just 10% back.
✓ We Handle the Paperwork
Filing for MITC 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.
✓ 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 MITC 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 yet a Stygvir customer?
Not problem! We've written this guide for everyone's benefit. If you do need help selecting advanced manufacturing equipment that goes the extra mile, feel free to reach out. We’re here to help you make the most of your investments.
