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The refundable Manitoba Green Energy Equipment Tax Credit is available for the installation of eligible geothermal ground source heating systems or solar thermal heating equipment, in the tax year. Effective 2015, this tax credit is expanded to include biomass fuel energy equipment that is installed in Manitoba and used in business only.
Property owners in Manitoba who installed geothermal ground source heating systems in the tax year can receive a tax credit of 15% on the cost of the qualifying geothermal heat pump plus 7.5% if it was manufactured in Manitoba. A tax credit of 10% is claimable for the eligible cost of qualified solar thermal heating installed. A tax credit of 15% is claimable for biomass fuel energy equipment installed in the tax year.
Manitoba-based manufacturers can claim a 7.5% tax credit on the sale of heat pumps made and sold for use in Manitoba.
As a property owner, if you installed a geothermal ground source heating system or solar thermal heating equipment in the tax year on your property, you may be eligible for this tax credit.
Eligible geothermal ground source heating systems and solar collectors must meet the standards set by Canadian Standards Association. The machinery and equipment must be new. Note, to qualify for the tax credit it is not necessary that the complete heating system be eligible. For example, if you are replacing an old heat pump with a new qualifying heat pump, the new heat pump will be eligible for the credit. Click this link for more information on geothermal ground source heating systems and solar thermal heating equipment and their standards.
The costs to acquire and install the eligible geothermal ground source heating systems or solar thermal heating equipment must have been incurred and paid in the tax year. If government assistance was received for the purchase or installation of the system, the assistance amount will reduce the amount claimable for this tax credit.
The following equipment are not eligible for this tax credit:
- A building or part of a building;
- Equipment used to heat water for use in a swimming pool;
- Energy equipment that backs up eligible equipment described above; and
- Equipment that distributes heated air or water in a building.
To be eligible for the tax credit, Manitoba-based manufacturers must have made and sold heat pumps for use in Manitoba.
- Information for Residents of Manitoba (CRA website)
- Green Energy Equipment Tax Credit (Manitoba Finance website)
- MB479: Manitoba Credits (CRA website)