Manitoba Scientific Research and Experimental Development (SR&ED Tax) Credit

In the 2009 Budget Manitoba announced that the 20% Research and Development
Tax Credit would be fully refundable for SR&ED expenditures for SR&ED work
carried out in Manitoba under an eligible contract with a qualifying
research institute in Manitoba. In the 2010 Budget it was proposed that the
refundability be extended to in-house R&D expenditures as follows:

1. starting with 2011, one-quarter of the credit for in-house R&D will be
   refundable;
2. starting with 2012, one-half of the credit for in-house R&D will be
   refundable.

Manitoba Interactive Digital Media Tax Credit

In the 2010 budget it was proposed that the Interactive Digital Media Tax
Credit, which is set to expire December 31, 2010, be extended to December
31, 2013.

The following changes were also proposed, effective for certificates of
eligibility and tax credit certificates issued after March 23, 2010:

1. tax credit certificates will be issued on a taxation-year basis instead of
   at the end of a project;
2. repaid or repayable government assistance will no longer reduce eligible
   labour costs; and
3. where a government or public authority is the purchaser of an interactive
   digital media product, the amount paid by the purchaser and the amount of
   the Interactive Digital Media Tax Credit cannot exceed 100% of the project’s
   costs.