I was delighted to learn about Manitoba’s Odour Control Tax Credit, even if it is about to expire.
Odour control is a key challenge for all forms of organic waste, from manure to compost, and has been a major obstacle to organic waste diversion. From 2006 to this year, Manitoba has allowed corporations a special tax credit for odour control under section 10.2 of Income Tax Act (Manitoba) if the corporation has a permanent establishment in Manitoba and had eligible expenditures in the current tax year or unused credit from a prior tax year. For farms, the tax credit is refundable. Individual farmers also get such a credit. Does anyone know whether this tax credit has produced a significant improvement in organic waste odour control in Manitoba?
Eligible expenditures refer to the capital cost of a depreciable capital property (e.g., straw cannons, sewage lagoon covers and seals, biofiltering units) acquired under the following conditions:
– it was acquired by the corporation before 2012 to prevent, eliminate, or significantly reduce odour that arises from organic waste used or created in the course of the corporation’s business in Manitoba;
– the property became available for use by the corporation in the tax year and before 2012;
– the property was not used or acquired for any use by anyone before it was acquired by the corporation;
– it is prescribed by regulation, or is declared by the provincial minister, to be a qualifying property; and
– it is property that is used in a process that involves “other equipment used in anaerobic processes”.