Ontario Made Manufacturing Investment Tax Credit: A Game-Changer for Local Industry

Ontario’s manufacturing sector is the backbone of the province’s economy—and now, it’s getting a serious boost. The Ontario Made Manufacturing Investment Tax Credit (OMMITC) is designed to help businesses invest in the future by making capital upgrades more affordable. Whether you're expanding your facility or upgrading your equipment, this credit could mean thousands—if not millions—in savings.

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What Is the Tax Credit?

The OMMITC is a refundable corporate income tax credit that offers 10% back on qualifying investments in buildings, machinery, and equipment used for manufacturing or processing in Ontario. Eligible corporations can receive up to $2 million annually, making it one of the most generous provincial incentives available.

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Who Can Apply?

To qualify, your business must:

• Be a Canadian-controlled private corporation (CCPC) throughout the tax year.

• Operate through a permanent establishment in Ontario (such as a factory or office).

• Be subject to Ontario corporate income tax (i.e., not tax-exempt).

 

What Investments Are Eligible?

The credit applies to specific Capital Cost Allowance (CCA) classes, including:

• Class 1: Buildings used for manufacturing or processing.

• Class 53: Machinery and equipment used directly in manufacturing or processing.

• Class 43 (starting in 2026): Certain energy-efficient equipment.

These assets must be acquired after March 22, 2023, and used primarily in Ontario for eligible activities.

 

What’s New for 2025 and Beyond?

The Ontario government has proposed several enhancements to the program:

• Credit rate increase to 15% for certain corporations.

• Expansion to include non-CCPCs on a non-refundable basis.

• A repayment clause: If the asset is sold, moved out of Ontario, or repurposed within five years, the credit may need to be repaid.

• The program is currently set to expire on January 1, 2030, unless extended.

 

How to Claim It

Eligible corporations can claim the credit on their T2 Corporation Income Tax Return, administered by the Canada Revenue Agency (CRA). Be sure to keep detailed records of your investments and their use to support your claim.

 

This tax credit is more than just a financial incentive—it’s a strategic opportunity to modernize operations, improve productivity, and stay competitive in a rapidly evolving market. If you're planning a capital investment, now is the time to take advantage.

Want help assessing your eligibility or planning your next move? Reach out—we’re here to support Ontario’s businesses.