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Ontario Made Manufacturing Investment Tax Credit

The provincial budget tabled a few weeks ago shed some light on a new Ontario Made Manufacturing Investment Tax Credit, a 10% grant on the cost of eligible manufacturing equipment and buildings (acquisition, construction or renovation of the buildings for manufacturing purposes).

The program is a 10% refundable tax credit for capital investments in buildings, machinery, and equipment used in manufacturing or processing, which aims to bring manufacturing back to Ontario.

Eligibility Requirements for the Ontario Made Manufacturing Investment Tax Credit

  1. Be a Canadian‐controlled private corporation (CCPC)
  2. Have a permanent establishment in Ontario
  3. Make qualifying investments (incur eligible costs)

Eligible Costs

  • Constructing, renovating or acquiring buildings used for manufacturing or processing that become available for use on or after March 23, 2023. To qualify as a building used for manufacturing, 90% of the floor space of the building must be used at the end of the corporation’s taxation year for manufacturing or processing.
  • Machinery and equipment used in the manufacturing or processing of goods. The machinery and equipment would have to be acquired and become available for use on or after March 23, 2023, and before 2026.

The maximum amount of funding is $20,000,000 per taxation year and would be prorated for a short taxation year.

CHECK ELIGIBILITY

The program is administrated by the Canada Revenue Agency on behalf of the Government of Ontario. The application for the Ontario Made Manufacturing Investment Tax Credit is filed at the end of the corporate fiscal year, along with the T2 Corporate Tax Return. If you already filed T2, you can amend it.

For more information about the tax credit, visit the official page on the Canada Revenue Agency website.

Accelerating Manufacturing Scale-Up Grant Program

Amount: between $50,000 up to a maximum of $250,000 to eligible businesses or up to a maximum of $500,000 to eligible groups in collaboration.

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