O. Reg. 167/25: SMALL BEER MANUFACTURERS' TAX CREDIT, TAXATION ACT, 2007
ontario regulation 167/25
made under the
Taxation Act, 2007
Made: July 31, 2025
Filed: August 1, 2025
Published on e-Laws: August 5, 2025
Published in The Ontario Gazette: August 16, 2025
Amending O. Reg. 280/11
(SMALL BEER MANUFACTURERS’ TAX CREDIT)
1. (1) Subsection 3 (2) of Ontario Regulation 280/11 is amended by striking out “Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996” and substituting “Liquor Tax Act, 1996”.
(2) Subsection 3 (4) of the Regulation is amended by adding “ending on or before March 2, 2025” after “for a sales year” in the portion before the formula.
(3) Section 3 of the Regulation is amended by adding the following subsections:
(4.1) Despite subsection 104.16 (3.2) of the Act, the amount of a qualifying corporation’s small beer manufacturers’ tax credit for a sales year beginning on March 3, 2025 and ending on March 1, 2026 is determined using the formula:
[(L × M) ∕ N + (O × P) ∕ N + (Q × R) ∕ N + (S × T) ∕ N] × U × V × W × X
in which,
“L” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year on or before July 31, 2025,
“M” is $0.4999 per litre,
“N” is,
(a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or
(b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the total number of litres of beer sold in qualifying sales in the sales year,
“O” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year on or before July 31, 2025,
“P” is $0.3649 per litre,
“Q” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year from August 1, 2025 to March 1, 2026,
“R” is $0.6987 per litre,
“S” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year from August 1, 2025 to March 1, 2026,
“T” is $0.5447 per litre,
“U” is,
(a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or
(b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 4.9 million,
“V” is,
(a) if not more than 13 million litres of beer is sold in qualifying sales in the sales year, 1, or
(b) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 0.7556,
“W” is,
(a) if not more than 7.5 million litres of beer is sold in qualifying sales in the sales year, 1,
(b) if more than 7.5 million litres but not more than 13 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula,
1 − ((N − 7.5 million) ∕ 22.5 million), or
(c) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula,
1 − ((N − 13 million) ∕ 7 million),
“X” is the amount calculated using the formula,
[(Y × M) + (Z × P) + (AA × R) + (BB × T)] ∕ [(L × M) + (O × P) + (Q × R) + (S × T)]
in which,
“Y” has the same meaning as “K” in subsection 104.16 (3.2) of the Act,
“Z” has the same meaning as “N” in subsection 104.16 (3.2) of the Act,
“AA” has the same meaning as “P” in subsection 104.16 (3.2) of the Act, and
“BB” has the same meaning as “R” in subsection 104.16 (3.2) of the Act.
(4.2) Despite subsection 104.16 (3.3) of the Act, the amount of a qualifying corporation’s small beer manufacturers’ tax credit for a sales year beginning on or after March 2, 2026 is determined using the formula:
[(A × B) ∕ E + (C × D) ∕ E] × F × G × H × I
in which,
“A” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year,
“B” is $0.6987 per litre,
“C” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year,
“D” is $0.5447 per litre,
“E” is,
(a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or
(b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the total number of litres of beer sold in qualifying sales in the sales year,
“F” is,
(a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or
(b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 4.9 million,
“G” is,
(a) if not more than 13 million litres of beer is sold in qualifying sales in the sales year, 1, or
(b) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 0.7556,
“H” is,
(a) if not more than 7.5 million litres of beer is sold in qualifying sales in the sales year, 1,
(b) if more than 7.5 million litres but not more than 13 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula,
1 − ((E − 7.5 million) ∕ 22.5 million), or
(c) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula,
1 − ((E − 13 million) ∕ 7 million)
“I” is the amount calculated using the formula,
[(J × B) + (K × D)] ∕ [(A × B) + (C × D)]
in which,
“J” has the same meaning as “A” in subsection 104.16 (3.1) of the Act, and
“K” has the same meaning as “C” in subsection 104.16 (3.1) of the Act.
(4) Subsection 3 (5) of the Regulation is amended by striking out “subsection (4)” in the portion before paragraph 1 and substituting “subsections (4), (4.1) and (4.2)”.
Commencement
2. This Regulation comes into force on the day it is filed or, if this Regulation is filed after August 1, 2025, this Regulation is deemed to have come into force on August 1, 2025.
Le ministre des Finances,
Peter Bethlenfalvy
Minister of Finance
Date made: July 31, 2025
Pris le : 31 juillet 2025
