B.C. Manufacturing and Processing Investment Tax Credit

Government of British Columbia · A refundable tax credit introduced in Budget 2026 that supports manufacturing and processing industries in British Columbia.

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Overview

A refundable tax credit introduced in Budget 2026 that supports manufacturing and processing industries in British Columbia. Qualifying corporations can claim 15% of net eligible expenditures for capital property (buildings, machinery, equipment) acquired after March 31, 2026, up to $2 million per eligible property, with the rate declining to zero over time.

Eligibility

Must be a Canadian-controlled private corporation (CCPC) with a permanent establishment in B.C.Cannot be exempt from B.C. income tax or controlled by an entity exempt from B.C. income tax.Cannot be an employee venture capital corporation or a small business venture capital corporation.Property must be acquired and available for use after March 31, 2026 and before April 1, 2036.

Eligible projects

Buildings and component parts (wiring, plumbing, sprinkler systems, HVAC, lighting, elevators) used for manufacturing or processing.Machinery and equipment in federal Class 43 for capital cost allowance purposes.New property not previously used, acquired primarily for manufacturing or processing goods for sale or lease in B.C.

Financing terms

Refundable tax credit of 15% on net eligible expenditures from April 1, 2026 to March 31, 2031.Credit rate declines by 2.5% annually from April 1, 2031 until it reaches zero.Maximum $2 million in eligible expenditures per property; associated groups must share this limit.Credit claimed with T2 Corporation Income Tax Return; must be claimed within 18 months of property becoming available for use.Full repayment required if property is disposed of, converted, or removed from B.C., with prorated repayment based on fair market value at time of event.

How to apply

1Check eligibilityConfirm you meet every criterion listed above before you start.

2Prepare the project packageProject description, budget with quotes, team, and recent financial statements.

3Apply on www2.gov.bc.caGovgrant members can draft the application with AI and export a formatted PDF.

4Respond to reviewer questionsMost programs come back with one round of questions within a few weeks of submission.

Additional information

Eligible expenditures must be reduced by government assistance or non-government assistance received directly or indirectly.Expenditures cannot have been claimed under the B.C. scientific research and experimental development tax credit in any tax year.Claims must be made no later than 18 months after the end of the tax year in which the property became available for use.

At a glanceMaximum$2MProviderGovernment of British ColumbiaDeadlineApr 1, 2036StatusOpenRegionBritish ColumbiaOfficial sourcewww2.gov.bc.ca ↗

Members only