Ontario is reinforcing its commitment to the manufacturing sector by enhancing the Ontario Made Manufacturing Investment Tax Credit (OMMITC). This initiative is part of the province’s broader strategy to bolster domestic production, attract investments, and ensure that Ontario remains a competitive player in the global manufacturing landscape.
What Is the Ontario Made Manufacturing Investment Tax Credit?
Originally introduced in the 2023 Budget, the OMMITC is currently a 10% refundable corporate income tax credit designed to encourage investments in manufacturing infrastructure. Eligible corporations can claim the credit on qualifying expenditures related to buildings, machinery, and equipment used in manufacturing or processing within Ontario. The credit is available to Canadian-controlled private corporations (CCPCs) that carry on business in Ontario through a permanent establishment, such as a factory or workshop.
2025 Budget Proposal – Increased Funding
As part of the upcoming 2025 Ontario budget, proposed changes would increase the OMMITC from a 10% to a 15% refundable tax credit for CCPCs, as well as expanding eligibility to non-Canadian-controlled private corporations as a non-refundable tax credit, designed to support and encourage their investments in Ontario.
The maximum credit a corporation can receive has been increased from $2 million per year to $3 million per year, based on eligible investments of up to $20 million. This cap is prorated for short taxation years and shared among associated groups of corporations.
Real-World Impact
The OMMITC has already demonstrated its effectiveness in supporting Ontario businesses, and going forward, the enhanced OMMITC aligns with Ontario’s strategic focus on revitalizing its manufacturing sector.
Stay Tuned
Ontario’s decision to increase support for manufacturers through the enhanced Ontario Made Manufacturing Investment Tax Credit reflects a proactive approach to strengthening the province’s manufacturing sector. You can view the announcement and review the quick facts here, and for more information, including information about accessing the enhanced and expanded OMMITC, contact your Welch advisor.
