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Ontario tax credit for manufacturing and processing - Ontario - Canada
Open
Source verified July 12, 2026

Ontario tax credit for manufacturing and processing

Ontario corporate tax relief for manufacturers
Offered by
Ontario Ministry of Finance
Official source: canada.ca
Latest source update
Last Update: July 6, 2026
Latest change: The Ontario manufacturing and processing tax credit page now shows the 2026 Schedule 5 links, and the credit rate and cap have increased to 15% and $3 million for investments after May 14, 2025.
View change
Ontario manufacturing tax credit updated
The Ontario tax credit for manufacturing and processing now shows updated Schedule 5 form links for 2026, including the accessible fillable PDF and standard print PDF versions. The main claim guidance also continues to direct filers to enter the credit on line 406 of Schedule 5. The credit terms have materially changed: the rate increases from 10% to 15%, the maximum credit increases from $2 million to $3 million, and some non-CCPCs become eligible for investments after May 14, 2025. New repayment rules also apply if qualifying property is disposed of, converted, or removed within five years.
Funding available
Up to 2% of project cost
Deadline
Open continuously
Location
Ontario, Canada
Who can apply

Corporations with Ontario taxable income during the tax year.

See full eligibility

Overview

Ontario Tax Credit for Manufacturing and Processing helps corporations with Ontario taxable income and eligible Canadian profits from manufacturing, processing, farming, fishing, logging, mining, generating electrical energy for sale, or producing steam for sale. Eligible calculations cover Schedule 502 and, for qualifying corporations, small-manufacturer rules and income from those activities.
/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Reduce environmental footprint
Eligible Funding
  • Up to 2% of project cost
Funds Providers

Eligible candidates

Eligible Industries
  • All industries
Location
  • Ontario
Legal structures
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Canadians

Next Steps

1
Determine your project
2
Validate your eligibility

Documents Needed

  • Completed Schedule 502, Ontario Tax Credit for Manufacturing and Processing

Official resources

Official page

Ontario tax credit for manufacturing and processing

Application form

Ontario Tax Credit for Manufacturing and Processing (2019 and later tax years)

Ontario Tax Credit for Manufacturing and Processing (2019 and later tax years)

Ontario Tax Credit for Manufacturing and Processing (2022 and later tax years)

Ontario Tax Credit for Manufacturing and Processing (2022 and later tax years)

T2SCH5 Tax Calculation Supplementary - Corporations

Supporting document

Ontario Tax Credit for Manufacturing and Processing (2012 and later tax years)

Ontario Tax Credit for Manufacturing and Processing (2020 and later tax years)

Ontario Tax Credit for Manufacturing and Processing (2020 and later tax years)

Tax Calculation Supplementary - Corporations (2014 and later tax years)

Tax Calculation Supplementary - Corporations (2019 and later tax years)

Eligibility

Who is eligible?

  • Corporations with Ontario taxable income during the tax year.
  • Corporations with eligible Canadian profits from manufacturing and processing, farming, fishing, logging, mining, generating electrical energy for sale, or producing steam for sale.

Who is not eligible

  • Corporations cannot claim the credit on income subject to the Ontario small business deduction rate.

Ineligible Costs and Activities

  • The credit cannot be claimed on income subject to the Ontario small business deduction rate.

How to apply

  • Complete Schedule 502, Ontario Tax Credit for Manufacturing and Processing.
  • Attach Schedule 502 to the T2 Corporation Income Tax Return.
  • Enter the credit amount on line 406 of Schedule 5, Tax Calculation Supplementary – Corporations.

Contacts

none
none

Frequently Asked Questions about the Ontario tax credit for manufacturing and processing Program

What is the Ontario tax credit for manufacturing and processing?

Ontario Tax Credit for Manufacturing and Processing helps corporations with Ontario taxable income and eligible Canadian profits from manufacturing, processing, farming, fishing, logging, mining, generating electrical energy for sale, or producing steam for sale. Eligible calculations cover Schedule 502 and, for qualifying corporations, small-manufacturer rules and income from those activities.

How much funding can be received?

Ontario tax credit for manufacturing and processing Funds up to 2% of admissible expenses.

Who is eligible for the Ontario tax credit for manufacturing and processing program?

To be eligible for the Ontario tax credit for manufacturing and processing program, you must: The corporation had Ontario taxable income during the tax year. The corporation had eligible Canadian profits from manufacturing and processing, farming, fishing, logging, mining, generating electrical energy for sale, or producing steam for sale.

Who can I contact for more information about the Ontario tax credit for manufacturing and processing?

You can contact Ontario Ministry of Finance by email at none or by phone at none.

Where is the Ontario tax credit for manufacturing and processing available?

The Ontario tax credit for manufacturing and processing program is available the province of Ontario.

Is the Ontario tax credit for manufacturing and processing a grant, loan, or tax credit?

Ontario tax credit for manufacturing and processing is a Tax Credits

Who are the financial supporters of the Ontario tax credit for manufacturing and processing?

Ontario tax credit for manufacturing and processing is funded by Ontario Ministry of Finance, Government of Ontario, Canada Revenue Agency (CRA)