WINNIPEG — The Manitoba government has announced a new tax increment financing incentive to push economic growth in the province.
The Manitoba Works Capital Incentive will lever incremental education property tax rebates to stimulate economic growth and job creation, said Economic Development and Training Minister Ralph Eichler in a press release.
“This new program in Manitoba’s investment support tool kit will bring business investment and jobs to the province and help achieve the objectives set out in the provincial Economic Growth Action Plan. The Manitoba Works Capital Incentive demonstrates that our province continues to be open for business during these challenging economic times,” Eichler said.
The first project announced under the program is the potential investment of $392 million in private capital into the redevelopment of Portage Place Mall in Winnipeg through a $28.7 million rebate over 20 years. The development will convert Portage Place into a mixed-use project including student housing, larger-family Indigenous student housing, retail and services.
A new or existing business can apply for the program if they are prepared to make a minimum capital investment of $10 million to a specific property, which will be designated for tax increment financing benefits; ensure a minimum of 64 per cent of total project costs are from private sources; and show there is demonstrable potential to create or maintain jobs within Manitoba, or that the new business will have a measurable economic benefit to the province.
The government has committed to phase out the education property tax in order to relieve property owners of this burden and to align Manitoba with other provinces. Rebates provided through the Manitoba Works Capital Incentive will support significant development during the phase-out period and will provide a competitive tax advantage, Eichler added.
“The Manitoba Works Capital Incentive carries no risk in that it provides no up-front money to the developer, and the province pays only what is collected in incremental education property tax as a result of the development,” a provincial government release stated.