Manitoba Creative Industries Tax Credits
Manitoba’s creative industries sector is thriving and growing – right here in the heart of North America. Companies can easily build their businesses in film and interactive digital media by taking advantage of two of the most highly competitive film tax credits in Canada.
Manitoba Film & Video Production Tax Credit
This tax credit is administered by Manitoba Film & Music (MFM), a catalyst for growth in Manitoba’s film industry and led by Manitoba's Film Commissioner. You can contact MFM directly to learn more about these tax credit options, and how you can combine the Canadian Film or Video Production Services Tax Credit.
The tax credit has two components that companies can access: Cost-of-Salaries Tax Credit or Cost-of-Production Tax Credit.
The Cost-of-Salaries Tax Credit is a highly competitive fully refundable tax credit of up to 65 per cent for film and video productions based on eligible salaries paid to:
Manitoba residents and qualifying non-resident employees for work performed on an eligible film or video produced in Manitoba.
Base rate of 45 per cent, calculated on eligible Manitoba labour expenditures.
65%Companies can also combine incentives to increase their tax credit up to 65 per cent through:
Frequent Filming Bonus
Companies can increase their tax credit by 10 per cent on the third film shot within a 2-year period. They can keep the 10 per cent bonus on subsequent projects by maintaining production activity so that three films are shot within a 2-year period.
Manitoba Producer Bonus
Companies can increase their tax credit by 5 per cent by co-producing with a Manitoba producer.
Rural and Northern Bonus
Companies can increase their tax credit by 5 per cent by shooting a minimum of 50 per cent of their Manitoba production days at least 35 km from Winnipeg's centre.
38%The Cost-of-Production Tax Credit is the most competitive all-spend credit in Canada. It's a fully refundable tax credit of up to 38 per cent for film and video production based on eligible Manitoba expenditures including:
Manitoba labour, deemed labour, service contract expenditures, hotel accommodations, and expenditures for the rental or acquisition of tangible property that are reasonable in the circumstance and directly attributable to the production.
Base rate of 30 per cent, calculated on eligible Manitoba expenditures, including eligible Manitoba labour.
Manitoba production company bonus: Companies can increase their tax credit by 8 per cent for a total of 38 per cent by co-producing with an eligible Manitoba production company.
Manitoba Interactive Digital Media Tax Credit
This tax credit is driven by the Manitoba government with additional industry support from New Media Manitoba. This fully refundable corporate income tax credit for companies that develop and produce eligible interactive digital media projects in Manitoba.
40%It provides up to a 40 per cent tax credit on qualified labour expenditures, and some marketing and distribution expenses, incurred in the development of eligible interactive digital media products. To qualify:
A company must first apply for a Certificate of Eligibility before proposed project work on the product begins. Projects are reviewed for eligibility on a case-by-case basis.
An eligible product must include the development of digital media that the user interacts with by employing both software and data files.
The media must include a combination of text, sound, or images, be non-linear in nature and enable the user to become a participant with the media, not simply a reader or spectator.
Products must also meet a sales requirement to qualify for this tax credit.
A company can qualify for a 40 per cent tax credit if that company is a taxable Canadian corporation with a permanent establishment in Manitoba and pays 25 per cent of its company salaries and wages to Manitoba residents.
A company can qualify for a 35 per cent tax credit if that company pays less than 25 percent of its salaries and wages to Manitoba residents but incurs at least $1 million in qualifying Manitoba labour expenses annually.
A company may claim up to $100,000 in eligible marketing and distribution expenses directly attributable to a project that meets the requirements to claim marketing and distribution costs.