Small Beer Manufacturers’ Tax Credit
The Taxation Act, 2007 includes a refundable corporate tax credit (Small Beer Manufacturers’ Tax Credit) for small beer manufacturers that do not qualify as microbrewers in a given sales year, provided the corporation meets all the required criteria (including limits on production).
Offered by Ministry of Finance
Amount
No fixed amount
Quick eligibility check
Who can apply
- For small beer manufacturers that do not qualify as microbrewers in a given sales year
- Provided the corporation meets all the required criteria (including limits on production)
- A beer manufacturer may qualify in respect of eligible sales of draft and non‑draft beer sold to purchasers in Ontario
- It has a permanent establishment in Ontario
- It did not qualify as a microbrewer for the sales year because its worldwide production of beer exceeds 4.9 million litres (49,000 hectolitres) using the lesser of the following amounts: the corporation’s worldwide production of beer for the previous production year; the corporation’s average annual worldwide production of beer based on the last five production years (excluding any production years in which the brewer’s worldwide production was zero). (Note: This five-year average can only be used for determining qualification for a sales year commencing on or after March 2, 2026
- Its worldwide production of beer was never more than 20 million litres (200,000 hectolitres) in any production year ending before January 1, 2018 and 30 million litres (300,000 hectolitres) in any production year beginning after December 31, 2017
- Its total eligible sales in any sales year was never more than 20 million litres (200,000 hectolitres)
- A beer manufacturer must contact the Ministry of Finance to apply not more than 2 years after the end of the sales year for which it was eligible for the credit
About the funding
The Taxation Act, 2007 includes a refundable corporate tax credit (Small Beer Manufacturers’ Tax Credit) for small beer manufacturers that do not qualify as microbrewers in a given sales year, provided the corporation meets all the required criteria (including limits on production).
The tax credit amount is determined by the qualifying small beer manufacturer's eligible sales in the sales year. A qualifying small beer manufacturer could still receive the tax credit even if its eligible sales for the sales year do not exceed 49,000 hectolitres.
The tax credit is subject to a phase‑out once eligible sales exceed 75,000 hectolitres.
Where an eligible small beer manufacturer is affiliated with or deemed to be related to any other brewer(s) at any time in the sales years, the total amount of the tax credit is based on the combined sales of the related brewers. Each individual brewer, provided it otherwise qualifies for the credit, will receive its proportionate share.
Show all funding details
Provided it qualifies, a beer manufacturer will receive the tax credit as a lump sum at the end of the sales year for which it is eligible for the credit. However, it may opt to receive the tax credit in monthly instalments during the sales year if the request is made before the start of the sales year for which it is eligible for the credit.
The Small Beer Manufacturers’ Tax Credit for 2026/27 has been adjusted to account for changes to beer basic tax rates. The maximum benefit for eligible small beer manufacturers has increased, and the existing phase-out at 2 million litres of annual sales has been maintained.
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