Overview

The Ontario Made Manufacturing Investment Tax Credit (OMMITC) and the Expanded Ontario Made Manufacturing Investment Tax Credit (Expanded OMMITC) help Ontario manufacturers:

  • lower their costs
  • innovate
  • become more competitive

The OMMITC is a refundable corporate income tax credit for Canadian‑controlled private corporations (CCPCs). As of May 15, 2025, the rate is 15% and a qualifying corporation could receive a tax credit of up to $3 million a year. Before May 15, 2025, (from March 23, 2023 to May 14, 2025) the OMMITC rate is 10% for a maximum tax credit of $2 million a year.

The new Expanded OMMITC is a 15% non‑refundable corporate income tax credit for corporations that are not CCPCs. Information on this credit is outlined in the Expanded Ontario Made Manufacturing Investment Tax Credit.

The credits are calculated on eligible investments in buildings, machinery and equipment for use in manufacturing or processing in the province.

Who qualifies

For the OMMITC, a qualifying corporation must meet the following requirements:

  • it is a CCPC throughout the taxation year
  • it is not exempt from Ontario corporate income tax for the taxation year
  • it carries on business in Ontario in the taxation year through a physical permanent establishment in Ontario (such as an office, a factory or a workplace)

Which investments are eligible

For the OMMITC, a qualifying corporation can claim capital investments in the following capital cost allowance classes.

Class 1: 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. Eligible building expenditures may be incurred in any year prior to the year the building becomes available for use.

Class 53: Machinery and equipment to be used in the manufacturing or processing of goods in Ontario that are incurred and become available for use on or after March 23, 2023. After 2025, eligible investments will be for property described in paragraph (a) of Class 43. Machinery and equipment expenditures may be incurred in the taxation year immediately preceding the year the asset becomes available for use.

The OMMITC is repealed effective January 1, 2030, and expenditures must be incurred on or before December 31, 2029, in order to be eligible.

The enhanced 15% OMMITC rate applies only if the property becomes available for use within the taxation year and on or after May 15, 2025, but before January 1, 2030. If the property becomes available for use after December 31, 2029, the 10% rate applies if the expenditure is incurred before January 1, 2030.

“Available for use” refers to the rules set out in the federal Income Tax Act that determine the taxation year in which a taxpayer can start to claim CCA for a depreciable property.

How the tax credit is calculated

A qualifying corporation can claim eligible expenditures up to a limit of $20 million in a taxation year. The credit is prorated for short taxation years. An associated group of corporations must share the $20 million limit.

The tax credit for a taxation year is 10% of eligible expenditures for eligible investments, up to a maximum of $2 million (i.e. 10% of the $20 million limit).

For the OMMITC, from May 15, 2025 to December 31, 2029, the calculation is 10% plus 5% for a total of 15% of eligible expenditures for a taxation year up to a maximum tax credit of $3 million (i.e., 15% of the $20 million limit).

Before May 15, 2025 (from March 23, 2023, to May 14, 2025) the OMMITC calculation is 10% for a maximum tax credit of $2 million a year (i.e., 10% of the $20 million limit).

Repayment of the tax credit

For the OMMITC, to help target the tax credit and ensure that it continues to support eligible investments in Ontario, a corporation may be required to make a repayment of the credit received. The repayment would be required if the credit is claimed and within the next five years, the particular property:

  • is disposed of
  • its use is changed to a non-manufacturing or non-processing use, or
  • is removed from Ontario

 The repayment amount would be the lesser of:

  • amount of the credit that was claimed, and
  • a proportionate amount, calculated by dividing either the fair market value of the property or, if the property is disposed of to a person dealing at arm’s length with the corporation, the proceeds of disposition, by the original capital cost of the property

This applies to dispositions, conversions, or removals of the relevant eligible property on or after May 15, 2025, for OMMITC claims for taxation years ending on or after May 15, 2025.

Expanded Ontario Made Manufacturing Investment Tax Credit

The Expanded OMMITC is a 15% non-refundable corporate income tax credit for capital investments in buildings, machinery and equipment used in manufacturing or processing in Ontario. The credit is available for eligible investments made on or after May 15, 2025, and before January 1, 2030. The maximum tax credit is $3 million (i.e., 15% of the $20 million eligible expenditure limit).

For the Expanded OMMITC, a qualifying corporation must meet the following requirements:

  • it is not a Canadian-controlled private corporation throughout the taxation year
  • it is not exempt from income tax for the taxation year
  • it carries on business in Ontario in the taxation year through a physical permanent establishment in Ontario (such as an office, a factory or a workplace)

For the Expanded OMMITC (similar to the OMMITC), capital investments in the capital cost allowance Class 1 and Class 53 (or 43) are eligible. The expenditure must be incurred on or after May 15, 2025 and before January 1, 2030. The property must also become available for use in the taxation year and on or after May 15, 2025.

The Expanded OMMITC (similar to the OMMITC) has a repayment requirement for dispositions, conversions or removals of the relevant eligible property on or after May 15, 2025, for taxation years ending on or after May 15, 2025.

The Expanded OMMITC includes a carry forward provision to allow any unused non-refundable credits to be applied against taxes payable in up to 10 subsequent taxation years.

How to claim the tax credit

The Canada Revenue Agency administers tax credits on behalf of Ontario and corporations can claim the tax credit on their T2 Corporation Income Tax return.

See the Taxation Act, 2007 (Ontario) for further details on the eligibility requirements and conditions that must be met to claim the credit.

Contact us

For general tax enquiries regarding this tax credit, taxpayers may telephone the CRA at:

Or visit the CRA website

For enquiries regarding the proposed changes announced in the 2025 Ontario Economic Outlook and Fiscal Review, including the temporary enhancement and expansion of the Ontario Made Manufacturing Investment Tax Credit, please contact the Ontario Ministry of Finance at: