In its 2005 budget [1] Manitoba proposed to increase its R&D tax credit rate from 15% to 20% for expenditures made after March 8, 2005. The combined federal and provincial rate in Manitoba is now 48% for smaller businesses and 36% for other businesses. The 20% credit is only available to companies with a Manitoba tax liability. Credits unused in a year may be either renounced, or carried back or carried forward to be applied against Manitoba tax otherwise payable in the preceeding three or following seven taxation years.