Manitoba government tables budget

April 12, 2011

BUDGET 2011 PUTS $65 MILLION BACK IN POCKETS OF MANITOBANS: WOWCHUK

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Major Personal, Business Taxes Either Frozen of Cut for 12 Consecutive Years

Finance Minister Rosann Wowchuk today announced $65 million in tax cuts for families and businesses, the 12^th consecutive year major provincial taxes have been either frozen or cut.
“Our government is putting money back in the pockets of Manitobans and reducing business taxes to keep our economy moving forward,” the minister said.  “These tax savings ensure our province is an affordable and attractive place to raise a family, and to create jobs and economic opportunity.”
This year, tax-cutting measures in the budget will save a family of four $212.  That same family of four will save $374 a year by 2014, said Wowchuk.
Budget 2011 tax reductions for families and property owners include:

• An increase of $50 to $700 in the basic Education Property Tax Credit, saving renters and homeowners an extra $16 million this year.
• An increase to the basic personal exemption of $1,000 over four years, starting with $250 this year.  When this measure is fully implemented, almost 22,000 more Manitobans will no longer pay provincial income tax.
• Implementation of a new Children’s Arts and Cultural Activity Tax Credit, to help parents introduce their children to activities such as art, music, drama, language instruction, environmental activities and personal tutoring.
• An increase in the maximum seniors’ Education Property Tax Credit of $150 to $950 in 2011 from $800.  This credit will rise by $75 to $1,025 in 2012 and by another $75 to $1,100 in 2013.
• An increase in the Primary Caregiver Tax Credit by 25 per cent to a maximum of $1,275 to assist families caring for elderly Manitobans and other loved ones.
• An increase in the Farmland School Tax Rebate to 80 per cent from 75 per cent, saving farmers an additional $2 million this year for a total of over $35 million annually.

This year, Manitoba companies will benefit from the complete elimination of the provincial small business income tax and the general corporation capital tax, said the minister.  
 Budget 2011 tax reductions for business include:

• The Green Energy Equipment Tax Credit will be increased to 15 per cent from 10 for installations of geothermal heating systems.  
• The Research and Development Tax Credit has been improved to make it one-quarter refundable for in-house research and development in 2011.   This credit will increase to one-half refundable in 2012.
• A new Cultural Industries Printing Tax Credit will be created to provide a 15 per cent refundable credit to support Manitoba-based printers.
• A new Neighbourhoods Alive! Tax Credit will support partnerships between businesses and charitable community-based organizations to create jobs for people facing barriers to employment.
• A Capital Tax Exemption for small banks to attract and encourage the expansion of small, innovative financial institutions in Manitoba.
• The Book Publishers Tax Credit will be expanded to include eligible costs related to publishing an electronic or digital version of eligible literary works.  The bonus will be increased to 15 per cent for publications printed on recycled paper, which will save book publishers an estimated $500,000 annually. 

Budget 2011 also extends the Manufacturing Investment Tax Credit, Mineral Exploration Tax Credit, the Community Enterprise Development Tax Credit, the Odour Control Tax Credit and the Co-op Education and Apprenticeship tax credits.
“Our government has a strong record of providing steady and responsible tax relief for Manitoba families and businesses, and in this budget we’re sticking to that approach,” said Wowchuk.

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