Ontario Launches New Incentive for Manufacturing Investments

Ontario Made Manufacturing Investment Tax Credit (OMMITC) now accepting applications

The new Ontario Made Manufacturing Investment Tax Credit (OMMITC) is a financial incentive designed to support and promote manufacturing within the province of Ontario. The OMMITC is a new 10% refundable tax credit, which aims to bolster local production capabilities, stimulate economic growth, and enhance job creation in the manufacturing sector. The OMMITC applies to eligible expenditures available for use after March 23, 2023. Qualifying expenditures of up to $20 million/year are eligible for a tax credit of up to $2 million.

SNAPSHOT

• Exciting Tax Credit News for Ontario Manufacturers!

• Eligible Canadian-Controlled Private Corporations (CCPC) can receive a 10% refundable credit up to $2 million per year on qualifying investments.

• Tax credit supports investments in buildings and equipment essential for manufacturing and processing.

• OMMITC is open for applications

EVALUATION CRITERIA

• Corporation must carry on business in Ontario, through a permanent establishment in Ontario such as a factory, office, or workshop.

• Corporation must be a Canadian Controlled Private Corporation (CCPC) throughout the tax year.

• Corporation must not be a tax-exempt entity.

• Qualifiying investments include:

  • If a corporation builds, renovates or purchases a qualifying building where more than 90% of floor space is used for manufacturing or processing in Ontario, the investment should qualify for the OMMITC.

  • If a corporation purchases and makes available for use after March 23, 2023, and before 2026 machinery and equipment used in the manufacturing or processing of goods in Ontario, the expenditures should qualify for the OMMITC.

  • If a corporation purchases and makes available for use after 2025 machinery and equipment used in the manufacturing or processing of goods in Ontario, the expenditures should qualify for OMMITC.

POTENTIAL VALUE

• An eligible corporation can claim qualifying expenditures up to a limit of $20 million in a taxation year and would be prorated for short taxation years. An associated group of corporations is also subject to the $20 million limit.

• 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).

CONNECT WITH THE HICKEY’S INCENTIVES TEAM

The Hickey & Associates incentives team has extensive experience advising manufacturers on financing and funding of in Ontario and throughout Canada. Contact us for more specifics, including eligibility criteria, application details, and funding requirements regarding the OMMITC. If you’d like our support throughout the application process, we are here to help!