IMPORTANT: The Manitoba Odour Control Tax Credit has been eliminated for expenses paid after April 11, 2017. This doesn't impact unused credits (which are available to be carried forward) on eligible expenses made before April 12, 2017.
If you’re a farmer based in Manitoba who paid for equipment that significantly prevents, reduces, or eliminates odours caused by organic waste, you might be eligible for the Manitoba Odour-Control Tax Credit (T4164) which allows you to claim 10% of all eligible expenses paid in the year.
For eligible equipment bought after December 31, 2012 and before April 12, 2017, this credit is fully refundable. Prior to that, you had to first use the tax credit to reduce your Manitoba tax payable and then any remaining amount could be refunded. Any unused amounts could be carried forward for 10 years or carried back for the three previous years. Any unused credit amounts that you didn’t claim in a previous year are also fully refundable. You can find your unused credit amounts on your latest notice of assessment or reassessment.
Note: You’ll need to reduce your eligible expenses by any government assistance you received or expect to receive for these expenses. You also can’t claim this credit on eligible expenses used in the calculation of any other credit.
Expenses that qualify for this tax credit include the cost of depreciable capital property such as straw cannons, sewage lagoon covers and seals, biofiltering units, storage tanks or containers, spraying equipment for aerobic or anaerobic treatment of organic waste, and soil injectors attached to manure spreaders. In addition, the following conditions must apply:
- the equipment was acquired by you (or your farming partnership) for preventing, significantly reducing, or eliminating odours caused by organic waste
- the equipment became available for use by your farming business in the tax year and
- the equipment was not used or acquired for any use by anyone before you acquired it.
Equipment used for monitoring or testing for odours, to transmit or transport organic waste or odours and that isn’t a soil injection manure spreader is not eligible.
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Important: Before you begin, make sure you’ve told us that you lived in MANITOBA on December 31, 2017.
- On the PREPARE tab, click the IN THIS SECTION icon.
- Under Income from self-employment, a business you own, or a profession (lawyer, accountant, etc.) and related expenses (vehicle, advertising, travel, etc.), click the Add This button.
- Select the province or territory of your self-employment.
- Click the EMPLOYMENT icon. You will find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled Manitoba odour-control tax credit for individuals (T4164), then click Continue.
- When you arrive at the page for your Manitoba odour-control tax credit for individuals, enter your information into the tax software.