The Ontario Made Manufacturing Investment Tax Credit is a 10% refundable Corporate Income Tax credit of up to $2 million a year towards investments in buildings, machinery and equipment for use in manufacturing or processing. Eligible corporations must be a Canadian-controlled private corporation (CCPC) not exempt from Ontario corporate income tax for the filing taxation year, and located and carrying on business in Ontario. Eligible corporations can claim capital investments in the following capital cost allowance classes.
- Class 1:For buildings acquired, constructed or, renovated and used for manufacturing or processing in Ontario that become available for use on or after March 23, 2023 and that are eligible for the additional 6% capital cost allowance permitted under the federal Income Tax Act for manufacturing or processing buildings.
- Class 53:For machinery and equipment to be used in the manufacturing or processing of goods in Ontario that are acquired and become available for use on or after March 23, 2023. For property acquired after 2025, qualifying investments will be property described in paragraph (a) of Class 43.
The tax credit for a taxation year is 10% of eligible expenditures for qualifying investments, up to a maximum of $2 million (i.e. 10% of the $20 million limit).
