Manitoba Tax Assistance Office
Green Energy Equipment Tax Credit
Geothermal Heat Pump Systems
Property owners who install a geothermal heat pump system in Manitoba can receive tax credits from the Manitoba government as follows:
- a 7.5% tax credit – on geothermal heat pumps that are manufactured in Manitoba for use in Manitoba, plus
- a 15% tax credit – on the remainder of the capital costs of the geothermal system (excluding the heat pump) if the installer is certified by the Manitoba Geothermal Energy Alliance, Inc. (see www.mgea.ca)
A further 7.5% tax credit is provided to Manitoba-based manufacturers on the sale of heat pumps that are made in Manitoba and sold for use in Manitoba.
Geothermal ground source heating systems have equipment that is or will be used primarily for heating an actively circulated liquid or gas and is part of a ground source heat pump system that meets the standards set by the Canadian Standards Association for the design and installation of earth energy systems, including such equipment that consists of underground piping, energy conversion equipment, energy storage equipment, control equipment, equipment designed to interface with other heating equipment.
The machinery and equipment must be new. Reconditioned or remanufactured machinery or equipment do not qualify for the credit. It is not necessary that a complete heating system qualify for the credit. For example, a qualifying new heat pump that is replacing an existing pump in a geothermal ground source heating system would be eligible for the credit. Additionally, the heat pump itself must have a full load coefficient of performance (as rated in accordance with the International Standards Organization standard) 13256-2:1998(R2015) for water-to-water and brine-to-water heat pumps, and standard 13256-1:1998 (R2009 for water-to-air and brine-to-air heat pumps) of not less than 3.3 for a closed loop design, or not less than 3.6 for an open loop design.
Capital cost includes invoiced costs of the geothermal system, as well as taxes - Manitoba sales tax, federal Goods and Services Tax, excise and customs taxes – and other costs related to acquiring and making the system operational - insurance, freight, installation. The costs must be incurred and paid. Where government assistance is received for purchasing or installing the system, this amount will reduce the amount claimable under the tax credit. Borrowing costs are not eligible.
The following equipment and property are not eligible for the 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.
The tax credit must be claimed through the income tax system either on the individual T1 income tax return, the corporate T2 income tax return or the T3 trust income tax and information return.
For information on this tax credit contact:
The Manitoba Tax Assistance Office, Manitoba Finance
110A - 401 York Avenue
Winnipeg MB R3C 0P8
Telephone: 204-948-2115
Toll free: (in MB) 1-800-782-0771
E-mail: tao@gov.mb.ca
For 2009 and forward, the Green Energy Equipment Tax Credit complements any Provincial Grants that may be available for geothermal installations. For additional information on provincial geothermal grants, including a Grant Application Form see: : Manitoba Geothermal Energy Incentive Program or visit www.manitoba.ca.
Solar Thermal Energy Systems
The Green Energy Equipment Tax Credit is extended to solar thermal energy systems purchased for use in Manitoba starting in 2009. Purchasers who install specified solar heating equipment in Manitoba qualify for a refundable 10% Green Energy Equipment Tax Credit on the eligible capital costs.
Capital costs include invoiced costs of the solar heating system, as well as taxes – Manitoba sales tax, federal Goods and Services Tax, excise and customs taxes – and other costs related to acquiring and making the system operational – such as insurance, freight, installation and design. The costs must be incurred and paid. Any other government assistance received for purchasing or installing the system reduce the amount claimable under the tax credit. Borrowing costs are not eligible.
- solar collectors,
- solar energy conversion equipment,
- solar water heaters,
- energy storage equipment,
- control equipment, and
- equipment designed to interface solar heating equipment with other heating equipment,
but not including:
- a building or part of a building (other than a solar collector that is not a window and that is integrated into a building),
- equipment used to heat water for use in a swimming pool, or
- equipment that distributes heated air or water in a building.
Specified equipment must be new. Reconditioned or remanufactured equipment is ineligible for the credit. It is not, however, necessary to install a complete heating system in order to qualify for the credit. Acceptable solar collectors must meet CSA Standard F378-87 or equivalent in order to qualify for the credit. The installation of solar thermal energy equipment for an owner-occupied residence does not require a signed commissioning report by a professional engineer. For properties other than an owner-occupied residence, a signed commissioning report approved by a professional engineer is required.
The tax credit must be claimed through the income tax system either on the individual T1 income tax return or the corporate T2 income tax return.
For information on this tax credit contact:
The Manitoba Tax Assistance Office, Manitoba Finance
110A - 401 York Avenue
Winnipeg MB R3C 0P8
Telephone: 204-948-2115
Toll free: (in MB) 1-800-782-0771
E-mail: tao@gov.mb.ca
Biomass Fuel Energy Equipment
The Green Energy Equipment Tax Credit has been expanded to include biomass fuel energy equipment that is installed in Manitoba and used in a business. The tax credit rate is 15%.
For information on this tax credit contact:
The Manitoba Tax Assistance Office, Manitoba Finance
110A - 401 York Avenue
Winnipeg MB R3C 0P8
Telephone: 204-948-2115
Toll free: (in MB) 1-800-782-0771
E-mail: tao@gov.mb.ca
