Ontario Made Manufacturing Investment Tax Credit
Corporations may qualify to receive corporate income tax support for investments in buildings, machinery and equipment used for manufacturing or processing.
The OMMITC is a refundable corporate income tax credit for Canadian‑controlled private corporations (CCPCs).
Offered by Ministry of Finance
Amount
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); 10% for a maximum tax credit of $2 million a year before May 15, 2025
Quick eligibility check
Who can apply
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)
About the funding
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.
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).
Show all funding details
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).
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.
The credits are calculated on eligible investments in buildings, machinery and equipment for use in manufacturing or processing in the province.
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.
To qualify as a building used for manufacturing, 90% of the floor space of the building must be used at the end of the corporation's tax year for manufacturing or processing in Ontario and it must be eligible for the additional 6% CCA allowed under the federal Income Tax Act
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Accelerated Investment Incentive | Tax Credit | no fixed amount | Open |
| Air Quality Improvement Tax Credit | Tax Credit | no fixed amount | Open |
| Clean Technology Investment Tax Credits (ITC) | Tax Credit | no fixed amount | Open |
| Full Expensing for Clean Energy Investments | Tax Credit | 100% first-year deduction for eligible Class 43.1 clean energy equipment acquired after 2024 and available for use before 2030 | Open |
