An Overview Of The Manitoba Film & Video Production Tax Credit

While Manitoba may be known for landmarks like The Forks and the Canadian Museum for Human Rights (and let's not forget honey dill sauce), a lesser-known fact is that Manitoba, Winnipeg in particular, has established itself as a leading destination for film and video production in Canada. And though the promise of honey dill might be enough to lure some, one of the most compelling reasons producers choose Manitoba is the Manitoba Film & Video Production Tax Credit (MB Film Tax Credit).

Widely regarded as one of the most generous and accessible tax credits in the country, it provides producers with a meaningful way to reduce production costs and reinvest in their projects. This article provides a general overview of the MB Film Tax Credit, its history, eligibility, and how producers can best make use of this unique opportunity.

A Brief History of the MB Film Tax Credit

The MB Film Tax Credit was first introduced in 1997 as a labour-based program, known as the Cost-of-Salaries Credit, designed to encourage film and television production in the province. Over time, it was expanded to include additional incentives such as the Rural and Frequent Filming bonuses in the mid-2000s.

In 2010, Manitoba broadened the program with the introduction of the Cost-of-Production Credit, which allowed producers to claim a percentage of overall Manitoba expenditures, not just labour.

Initially renewed in increments, the program was made permanent in 2019, underscoring its importance to Manitoba's cultural and economic landscape. Most recently, in 2020, the province introduced the Manitoba Production Company Bonus, further strengthening the program and ensuring Manitoba remains one of the most competitive jurisdictions in Canada for film and video production.

How the Credit Works

Structured as a fully refundable tax credit, the MB Film Tax Credit is available to taxable Canadian corporations that carry on business in Manitoba and are primarily engaged in film or video production.

Administered by Manitoba Film & Music, the credit is ultimately claimed through a corporation's tax return. Unlike many other jurisdictions, Manitoba offers producers a choice between two models:

• Cost-of-Salaries Credit: 45% of eligible Manitoba labour expenditures, with bonuses (frequent filming, rural shoots, Manitoba producer credit) that can bring the total up to 65%.
• Cost-of-Production Credit: 30% of all eligible Manitoba production expenditures, with an additional 8% bonus for qualifying Manitoba productions, bringing the total to 38%.

This dual structure gives producers flexibility to choose the model that provides the greatest benefit depending on the nature of their production.

Eligibility Requirements

To qualify for the MB Film Tax Credit, a production company must:

• Be a taxable Canadian corporation with a permanent establishment in Manitoba;
• Be primarily engaged in film or video production; and
• Ensure that at least 25% of total T4 salaries and wages are paid to Manitoba residents for work performed in the province.

Certain types of productions, such as news, talk shows, or advertising, are specifically excluded. Additional bonuses may be available where filming takes place outside Winnipeg, where a Manitoba producer is credited, or where the company demonstrates frequent production activity in the province.

Eligible and Ineligible Costs

The credit is designed to maximize Manitoba-based economic activity. Eligible costs include:

• Salaries and wages for Manitoba residents;
• Goods and services purchased from Manitoba suppliers;
• Accommodation expenses incurred in Manitoba during production; and
• In some cases, non-resident labour, provided that training requirements are met.

Excluded costs include out-of-province travel, promotional and marketing expenses, and certain financing charges. To maximize eligible claims, producers should plan carefully at the outset and maintain clear, detailed records throughout production.

Application Process

The application process involves two stages. First, producers must obtain a certificate from Manitoba Film & Music, either an Advance Certificate of Eligibility if the production is ongoing, or a Certificate of Completion once the project is finished. Second, the corporation claims the credit on its tax return, supported by the certificate and full financial documentation. Because the program requires detailed reporting, producers are encouraged to start early and keep organized records to avoid delays or reduced claims.

Why It Matters

The MB Film Tax Credit has a significant impact on the viability of projects. For independent producers, it can make the difference between a project moving forward or being shelved. For larger productions, it reduces financial risk, attracts financing partners, and allows savings to be reinvested into higher-quality content. The ability to choose between the labour-based and all-spend models provides a level of flexibility rarely available in other jurisdictions.

Key Considerations

Although the program is generous, it is also complex. Structuring productions correctly at the outset is critical, particularly in situations involving:

• Multiple co-producers or international co-productions;
• Financing structured through layered equity and debt arrangements;
• Reliance on non-resident labour under training rules; or
• Efforts to secure Manitoba-specific bonuses.

Failure to plan appropriately or to maintain adequate records can lead to reduced credits or even ineligibility.

How We Can Help

At Fillmore Riley LLP, we assist producers in navigating the MB Film Tax Credit. Our lawyers advise on structuring productions, selecting the most advantageous credit model, preparing and reviewing certificate applications, and ensuring compliance with all legislative and regulatory requirements.

If you are considering producing in Manitoba or relocating a project here, the MB Film Tax Credit can provide a substantial financial advantage. Our Entertainment law practice can help you secure and maximize the credit while ensuring your production remains on track. Contact us today to learn more about how this program can support your next project in Manitoba.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.