Rental Housing Construction Tax Credit

The Rental Housing Construction Tax Credit was discontinued in 2019 and is no longer available.

Rental Housing Construction Tax Credit Description

The Rental Housing Construction (RHC) Tax Credit is a financial incentive offered to private and non-profit housing developers (including non-profit co-operatives) to address the persistent shortage of rental housing in Manitoba communities.  Landlords who construct new rental housing are eligible and can offset a proportion of their capital investment through a tax credit equal to eight percent (8%) of the capital cost of new rental housing construction. To receive the tax credit, a minimum of ten percent (10%) of units constructed must have affordable rents.

For more information about the program please read the Rental Housing Construction Tax Credit Program Guidelines.

Rental Housing Construction Tax Credit Benefits

• The Rental Housing Construction tax credit is equal to eight percent (8%) of the capital cost of the rental housing project, to a maximum of $12,000 per residential unit.
• A "residential unit" means a residential dwelling unit that has its own keyed entry door, contains a bathroom and a kitchen or kitchenette and is usually rented or leased for a period of not less than one month.
• RHC tax credit will be claimable by filing an income tax return with the Canada Revenue Agency.
• Eligible projects will receive the RHC tax credit when they become available for rent and have met the affordable housing criteria.
• Eligible non-profit and non-profit co-operative projects will receive a fully refundable tax credit in the year the tax credit is earned, as qualifying units are rented.
• Eligible for-profit projects will receive a non-refundable tax credit, claimable over a minimum of five (5) years and capped based on the landlord’s Manitoba income tax.

Eligibility

• New applicants are required to submit a completed Preliminary Eligibility application by December 31, 2018.
• Landlords must be residents of Manitoba or have a permanent business in Manitoba.
• Housing can be either for-profit, not-for-profit, or non-profit housing co-operatives.
• Project must include the construction of five (5) or more new residential rental units.
• Project is complete and property must be ready for use with a valid occupancy date before January 1, 2021. 

Other Requirements

• Landlords will be required to report on their affordable units annually for five years.
  
  
• At least ten percent (10%) of the units in an eligible project must be affordable housing. This means that the rents charged are at or below the Affordable Housing Rental Program Rents for the current year and the tenants meet the Program Income Limits below:
  
  

Affordable Housing Rental Program Income Limits*
Household without children		$63,450
Family Household (families with children or dependants)		$84,600

 

2023 Affordable Housing Rental Program Rents* - Includes Essential Utilities (heat, water and sewer)
Community		Studio	1 Bedroom	2 Bedroom	3 Bedroom	4+  Bedroom
Winnipeg and Catchment		$702	$1,008	$1,259	$1,324	$1,506
Southern Other Urban/ Rural	Brandon	$584	$760	$1,012	$1,174	$1,301
	Dauphin	$529	$655	$819	$1,097	$1,240
	Portage la Prairie	$526	$706	$932	$1,123	$1,240
	Selkirk	$571	$758	$896	$1,174	$1,240
	Steinbach	$583	$801	$920	$1,174	$1,240
	Winkler	$512	$701	$859	$1,097	$1,240
Northern Other Urban/Rural	Thompson	$639	$874	$1,087	$1,172	$1,240
	The Pas/Flin Flon	$489	$675	$950	$1,097	$1,240
	Churchill	$520	$684	$860	$1,054	$1,181
Southern Non-Market		$466	$631	$807	$985	$1,114
Northern Non-Market		$454	$663	$778	$978	$1,114

 

2021 Affordable Housing Rental Program Rents* - No Utilities Included
Community		Studio	1 Bedroom	2 Bedroom	3 Bedroom	4+  Bedroom
Winnipeg and Catchment		$670	$921	$1,140	$1,202	$1,379
Southern Other Urban/ Rural	Brandon	$546	$673	$893	$1,052	$1,174
	Dauphin	$498	$568	$721	$954	$1,065
	Portage la Prairie	$488	$620	$813	$1,001	$1,065
	Selkirk	$533	$671	$777	$1,052	$1,065
	Steinbach	$545	$714	$801	$1,052	$1,065
	Winkler	$475	$614	$740	$975	$1,065
Northern Other Urban/Rural	Thompson	$607	$788	$992	$1,050	$1,070
	The Pas/Flin Flon	$452	$588	$832	$954	$1,065
	Churchill	Not applicable
Southern Non-Market		$428	$544	$688	$842	$939
Northern Non-Market		$423	$576	$670	$835	$986

* How are the number bedrooms I may be eligible for determined?

The National Occupancy Standards are our guidelines. These standards set the following requirements: 

• Not less than one and not more than two persons may occupy a single bedroom.
• Parents and children do not use the same bedroom.
• Single persons 18 and over have a separate bedroom.
• Children five and over do not share a bedroom with another person of the opposite sex.

How to Apply

1. Read the Rental Housing Construction Tax Credit Program Guidelines (PDF)
   
   

2. Download and complete the following forms:

For a Certificate of Eligibility

• Rental Housing Construction Tax Credit Certificate of Eligibility Application (PDF)
  
  
• Rental Housing Construction Tenant Declaration Appendix D (PDF)
  
  
• RHC Tax Credit – Schedule of Affordable Rental Units (PDF)
  
  

For a Certificate of Continuing Eligibility

• Rental Housing Construction Tax Credit – Certificate of Continuing Eligibility Application (PDF)
  
  
• Rental Housing Construction Tax Credit – Tenant Declaration Form (PDF)
  
  
• Rental Housing Construction Tax Credit – Schedule of Affordable Rental Units (PDF)
  
  

3. Submit completed applications to:

• Manitoba Housing
  Housing Delivery Branch (Rental Housing Construction Tax Credit)
  200 – 352 Donald Street
  Winnipeg, Manitoba
  R3B 2H8

 

 

 

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