Key Takeaways
- Ontario manufacturers can combine loan-based liquidity support with the Ontario Made Manufacturing Investment Tax Credit (OMMITC) — a refundable tax credit worth up to 15%.
- OMMITC offers up to $3 million per year in refundable credits on manufacturing buildings, machinery, and equipment investments.
- The credit is stackable with SR&ED and most other federal or provincial incentives.
- For working capital needs like payroll and rent, the Protect Ontario Financing Program remains the primary loan option for manufacturers.
- The Regional Opportunities Investment Tax Credit, a related program for commercial building investments, is set to expire December 31, 2026.
Two Different Kinds of Support
Manufacturers dealing with tariff pressure generally have access to two distinct types of relief, and it helps to think of them separately:
- Loans and liquidity programs — designed to cover immediate cash-flow needs like payroll, rent, and utilities
- Tax credits — designed to reward capital investment in buildings, machinery, and equipment, reducing the cost of modernizing or expanding operations
Most manufacturers benefit from using both, since they address different pressures at different points in the business cycle.
The Ontario Made Manufacturing Investment Tax Credit
OMMITC is a refundable corporate income tax credit aimed at encouraging capital investment in Ontario’s manufacturing sector. As of May 15, 2025, the credit was temporarily enhanced:
- Rate: 15% of eligible expenditures (up from 10%)
- Maximum credit: $3 million per year (up from $2 million)
- Investment cap: Based on up to $20 million in qualifying expenditures per tax year
- Refundable: Paid out even if your business owes no corporate tax
The credit applies to:
- Buildings used for manufacturing or processing (at least 90% of floor space)
- Machinery and equipment used in manufacturing or processing goods in Ontario
Who Qualifies for OMMITC
To claim the refundable credit, a corporation must:
- Be a Canadian-controlled private corporation (CCPC)
- Carry on manufacturing or processing activities in Ontario
- Not be exempt from Ontario corporate income tax
- Own or lease a permanent establishment in the province
As of the same May 2025 changes, non-CCPCs — including foreign-owned and publicly traded companies with a permanent establishment in Ontario — can now claim a related 15% non-refundable version of the credit, known as the Expanded OMMITC.
Filing and Stacking
A few practical details worth knowing:
- The credit is claimed on Schedule 572 of your T2 Corporation Income Tax return
- It can be stacked with SR&ED and most other federal or provincial incentives
- The $20 million expenditure limit is shared across an associated group of corporations
- The program is set to expire January 1, 2030, giving manufacturers a defined window to plan capital investments
One caution: certain dispositions, conversions, or removals of eligible property after claiming the credit can trigger a repayment requirement, so it’s worth reviewing asset plans with an accountant before committing to a purchase timeline.
A Related Credit That’s Expiring Soon
Manufacturers investing in commercial buildings should also be aware of the Regional Opportunities Investment Tax Credit (ROITC) — a 10% refundable credit for building investments in designated regions like Quinte and Kingston. Unlike OMMITC, ROITC is set to expire December 31, 2026, so manufacturers in eligible regions with qualifying projects in progress should confirm timing carefully.
Pairing Tax Credits With Loan Support
Tax credits reduce the cost of capital investment, but they don’t help with immediate cash-flow strain. For that, manufacturers — particularly those in steel, aluminum, or auto supply chains — typically look to:
- The Protect Ontario Financing Program for working capital loans covering payroll, lease, and utility costs
- The Ontario Together Trade Fund for grants or loans tied to reshoring, technology adoption, or new market entry
- Sector-specific federal programs covered in our steel, aluminum, and auto sector guide, if applicable to your business
Combining a working-capital loan with OMMITC can be a practical approach: use liquidity support to stabilize operations now, while capital investments made in the same period earn a refundable credit that offsets some of that cost down the line.
Before You Apply
Because eligible asset classes and CCA rules change from year to year — including a shift in the eligible equipment class from 2026 onward — manufacturers should confirm current details with a tax professional before finalizing large purchases. Getting the asset classification and timing right has a direct impact on how much credit you can actually claim.
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