2014-2015 Manitoba budget highlights

Economic results and indicators

• The provincial deficit for 2014-2015 is budgeted to be $357 million and the budget is expected to be balanced by the 2016-2017 fiscal year.
• The 2013-2014 deficit is forecast to be $432 million.
• The budget contains plans to spend $5.56 billion on core infrastructure projects over the next 5 years.

Personal and corporate tax rates

• Personal and corporate tax rates remain unchanged.

Measures concerning individuals

• Manitoba residents who are 65 years of age or older, or have a spouse 65 years of age or older, will be able to apply for a rebate of up to $235 of school taxes. This measure is effective in 2014 and is applicable only to seniors owning their own principal residences in Manitoba.
• The Community Enterprise Development Tax Credit is extended to December 31, 2019. For eligible shares issued after 2014, the tax credit will be made fully refundable and the tax credit rate will be increased to 45%.
• For shares eligible for the Small Business Venture Capital Tax Credit, the non-refundable tax credit rate is increased to 45% after 2014.
• The non-refundable Mineral Exploration Tax Credit is extended to cover flow-through share agreements entered into before April 1, 2018.

Measures concerning business

• The manufacturing investment tax credit is extended to December 31, 2017. This credit, 80% of which is refundable, is available to corporations acquiring assets used primarily in manufacturing or processing in Manitoba.
• The Co-op Education and Apprenticeship Tax credit is extended indefinitely. Effective for taxation years ending after 2014, the rate for apprentices and journeypersons will increase to 15% of wages and salaries, to a maximum of $5,000 per apprentice per year per level. There will no longer be a pre-approval process required. Employers will receive the credit through their annual personal or corporate income tax returns.
• The Book Publishing Tax Credit is extended to December 31, 2017.
• The Cultural Industries Printing Tax Credit is amended to cap the credit at $30,000 per eligible book title, to require at least 90% of the book to be new material that was not published before and if the book is not a children’s book, at least 65% to be text, and to require the book to be sold through an established distributor.

Other measures

Petroleum coke used in Manitoba will be subject to an Emissions Tax equal to $10 per tonne of carbon-dioxide-equivalent emissions, effective January 1, 2014.

For further details, we refer you to the Ministry of Finance website.

Contacts

Canadian Managing Partner, Tax
Heather Evans
416-601-6472

National Tax Policy Leader
Albert Baker
416-643-8753

Manitoba
Tax Director of Operations, Prairies
Jeff Black
306-343-4305

Brian J. Anderson
204-944-3628

Jim McDonald
204-944-3540

Keith Pitzel
204-944-3638

Brian Janzen
204-944-3614

This publication is produced by Deloitte LLP as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors. Your use of this document is at your own risk.