Ontario Made Manufacturing Investment Tax Credit

The manufacturing industry in Ontario has long been the cornerstone of the Canadian economy. Responsible for almost half of the country’s value of production, continued innovation and competitiveness is being highly encouraged.

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To ensure these goals are achieved, eligible investments in the industry are being incentivized. Through the Ontario Made Manufacturing Investment Tax Credit, eligible companies can get cash back up to 15% of their qualifying investments.

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What changed?

As of May 15, 2025, a temporary tax credit rate increase to 15%, from 10% in the previous years, was implemented. You can now get a higher refund for your qualified manufacturing & processing investments.

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What is the Ontario Made Manufacturing Investment Tax Credit (OMMITC)?

The Ontario Made Manufacturing Investment Tax Credit is a refundable corporate income tax credit for Canadian-controlled private corporations (CCPC). Starting May 15, 2025, non-CCPCs can also claim a non-refundable tax credit under the OMMITC.

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This program aims to incentivize local manufacturing & processing firms to invest in the sector and ensure that Ontario’s manufacturing sector maintains its indispensable role in the provincial economy.

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How much can you claim under the OMMITC?

Eligible Canadian-controlled private corporations can get a refundable corporate income tax credit of 15% or up to $3 million per year, for eligible expenses capped at up to $20 million per group of associated corporations.

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To be eligible under the enhanced rate, the purchases must be made available for use on or after May 15, 2025 and before January 1, 2030.

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For qualifying purchases made available for use on or after March 23, 2023 and before May 15, 2025, the applicable OMMITC rate is 10%.

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Who is eligible for the Ontario Made Manufacturing Investment Tax Credit?

To be eligible for the OMMITC, you have to be:

1. A Canadian-controlled private corporation (CCPC) throughout the year;
   
   • Non-CCPCs can receive the non-refundable version of the tax credit under the Expanded OMMITC from May 15th onward, provided they meet all the other requirements.
2. Not exempt from tax for the year under the corporate tax provisions of the Ontario Taxation Act (2007); and
3. Carrying on business through a permanent establishment in Ontario.

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Which investments can I claim a refund for?

You can claim the credit for capital purchases supporting manufacturing and processing operations in Ontario. Specifically, costs used for:

1. Constructing, renovating, or acquiring buildings used for manufacturing & processing goods in Ontario (Class 1 for capital cost allowance purposes); and
2. Purchasing machinery and equipment used in the manufacturing or processing of goods in Ontario (Class 53 for CCA purposes or Class 43 after 2025)

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Both qualifying investments must be available for use on or after March 23, 2023 and be incurred on or before December 31, 2029.

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Expanded Ontario Made Manufacturing Investment Tax Credit

Starting May 15, 2025, non-Canadian-controlled private corporations are now also eligible for a non-refundable corporate income tax credit for capital investments in buildings, machinery, and equipment used in manufacturing or processing in Ontario.

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Similar to the refundable version, a maximum tax credit of $3 million can be claimed.

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The expenditure must be incurred on or after May 15, 2025 and before January 1, 2030.

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The Expanded OMMITC includes a carryforward provision that allows non-CCPCs to apply unused non-refundable credits against taxes payable in up to 10 years.

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How to claim the tax credit

Eligible corporations can claim the tax credit on their T2 Corporation Income Tax Return.

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Contact us at info@grantfundpro.com for a free initial assessment.

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