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Ontario Made Manufacturing Investment Tax Credit
ON, Canada
Supports corporate investments in Ontario's manufacturing sector
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Ontario
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Ontario Made Manufacturing Investment Tax Credit provides a 10% refundable Corporate Income Tax credit, with maximum funding of $2 million annually, to support Ontario manufacturers in reducing costs, fostering innovation, and enhancing competitiveness through investments in buildings, machinery, and equipment. Eligible activities include capital investments in specified cost allowance classes for manufacturing or processing within Ontario.
grant_single_labels|terms_and_conditions
- 10% refundable Corporate Income Tax credit for eligible corporations on qualifying investments.
- Maximum tax credit of up to $2 million per year.
- Claimable on qualifying expenditures up to a $20 million limit per taxation year.
- The limit is prorated for short taxation years.
- The $20 million limit applies to associated groups of corporations.
grant_single_labels|projects
- Investment in buildings used for manufacturing or processing in Ontario.
- Acquisition of machinery and equipment for manufacturing or processing goods in Ontario.
grant_single|admissibleProjectsExample
$ 500,000
Renovation of workshop for advanced metal fabrication
$ 2,000,000
Expansion of a food processing facility for efficiency
$ 100,000
Upgrade of machinery in a furniture manufacturing plant
grant_single_labels|admissibility
- The corporation must be a Canadian-controlled private corporation throughout the taxation year.
- The corporation must not be exempt from Ontario corporate income tax for the taxation year.
- The corporation must carry on business in Ontario during the taxation year through a physical permanent establishment in Ontario, such as an office, a factory, or a workplace.
grant_eligibility_criteria|who_can_apply
- Corporations engaging in manufacturing.
- Corporations involved in processing activities.
grant_eligibility_criteria|eligible_expenses
- Capital investments in buildings acquired, constructed, or renovated for manufacturing or processing in Ontario.
- Machinery and equipment to be used in the manufacturing or processing of goods in Ontario.
grant_eligibility_criteria|zone
- Ontario, Canada
grant_single_labels|register
- Step 1: Review Guidelines
- Consult the Taxation Act, 2007 (Ontario) for detailed eligibility requirements and conditions.
- Step 2: Calculate Eligible Expenditures
- Determine qualifying investments in buildings, machinery, and equipment.
- Ensure expenditures do not exceed the $20 million limit in the taxation year.
- Step 3: Complete T2 Corporation Income Tax Return
- Include qualifying expenditures as a refundable Corporate Income Tax credit.
- Ensure that all calculations are accurate and comply with CRA regulations.
- Step 4: Submit T2 Return to CRA
- File the completed T2 Corporation Income Tax Return with the Canada Revenue Agency.
grant_single_labels|otherInfo
- The tax credit is administered by the Canada Revenue Agency on behalf of Ontario.
- Qualifying investments must be acquired and available for use on or after March 23, 2023.
- The tax credit is calculated based on a 10% rate of eligible expenditures for qualifying investments.
- An associated group of corporations is subject to a combined $20 million limit on qualifying expenditures.
- The tax credit amount is prorated for short taxation years.
- Corporations can claim the tax credit on their T2 Corporation Income Tax return.
grant_single_labels|contact
1-800-959-5525
