Important: The Manitoba Book Publishing Tax Credit, scheduled to expire at the end of 2017, has now been extended to December 31, 2018.
The government of Manitoba allows publishers based in the province to claim the Manitoba book publishing tax credit for individuals; a refundable credit for 40% of eligible labour costs. The maximum tax credit claimable by a publisher is $100,000 per year.
You can claim this tax credit if you’ve published a book this year and:
- You were a resident of Manitoba at the end of the year
- Your main business is publishing books
- You published at least two books within two years, ending at the end of the year
- At least 25% of the salaries/wages you paid during the year must have been to employees who are residents of Manitoba
The labour costs you can have partially refunded might include money you spent on:
- Editing, design, research or project management, creating artwork, or developing a prototype of the book
- Salaries or wages for your employees
- Contracted Manitoba labour costs or services, not including:
- Legal and accounting costs
- Any part of a salary, wage, or fee that’s determined by profits/revenues
For books you publish on paper that’s at least 30% recycled content, you can claim an additional credit of 15% for your publishing costs. For this additional tax credit, eligible printing costs must have been paid within one year of the book publication.
Where do I claim this?
Follow these steps in H&R Block's 2017 tax software:
Before you begin, make sure that you told us that you lived in Manitoba on December 31, 2017.
- On the PREPARE tab, click the IN THIS SECTION icon.
- Under the option 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 your province or territory of self-employment.
- Click the EMPLOYMENT icon. You’ll find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled Manitoba book publishing tax credit (individuals), then click Continue.
- When you arrive at the page for the Manitoba book publishing tax credit (individuals), enter your information into the tax software.