Green Energy Equipment Tax Credit
Property owners who install a geothermal heat pump system in Manitoba can receive tax credits from the Manitoba government as follows:
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%.
Offered by Ministry of Finance
Amount
7.5% tax credit on geothermal heat pumps manufactured in Manitoba plus 15% on the remainder of the geothermal system's capital costs; a further 7.5% to Manitoba-based manufacturers on heat pump sales; refundable 10% on eligible capital costs of solar heating equipment; 15% on biomass fuel energy equipment used in a business
Quick eligibility check
Who can apply
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 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.
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.
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.
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%.
The system must be installed in Manitoba by an installer certified by the Manitoba Geothermal Energy Alliance Inc., a listing of which is available on the MGEA website https://www.mgea.ca/.
About the funding
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)
Show all funding details
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.
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.
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%.
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.
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.
Specified equipment must be conventional active solar heating equipment that is or will be used primarily for the purpose of heating liquid or gas, including:
- 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,
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Accelerated Investment Incentive | Tax Credit | no fixed amount | Open |
| Air Quality Improvement Tax Credit | Tax Credit | no fixed amount | Open |
| Clean Technology Investment Tax Credits (ITC) | Tax Credit | no fixed amount | Open |
| Full Expensing for Clean Energy Investments | Tax Credit | 100% first-year deduction for eligible Class 43.1 clean energy equipment acquired after 2024 and available for use before 2030 | Open |
