Ontario Made Manufacturing Investment Tax Credit (“OMMITC”) – Enhancement Announced
- Posted:
The Ontario government has proposed significant enhancements to the Ontario Made Manufacturing Investment Tax Credit (“OMMITC”) as part of the 2025 Budget released on May 15, 2025. The enhancements will apply to qualifying manufacturing and processing property acquired and made available for use on or after May 15, 2025 and before January 1, 2030.
The following chart compares the OMMITC rules before and after the May 15, 2025 budget proposal.
| Before Enhancement | After Enhancement (Budget 2025 Proposal) | |
| Investment tax credit (“ITC”) rate | 10% | 15% |
| Maximum Annual ITC (per associated group) | $2 million | $3 million |
| Eligible Corporation Type | Canaian Controlled Private Corporations (“CCPCs”) only with permanent establishment (“PE”) in Ontario | CCPCs and certain non-CCPCs with PE in Ontario |
| Eligible property | Manufacturing & Processing (“M&P”) machinery and equipment under Class 53 (or Class 43 after 2025) for capital cost allowance (“CCA”) purposes M&P buildings (or building additions) under Class 1 for CCA purposes that are located in Ontario | No change in budget |
| Refundability | Refundable to CCPC only | Refundable for CCPCs; Non-refundable for non-CCPCs |
| ITC Carryforward Period | N/A | Up to 10 years (non-CCPCs) |
| Effective Date | Eligible property must be acquired and available for use on or after March 22, 2023 | Eligible property must be acquired and available for use on or after May 15, 2025 |
| Repayment Rules | N/A | Repayment if eligible property is sold/removed/ceased to be used for manufacturing within 5 years of being acquired |
| Expiry Date | N/A | January 1, 2030 |
If you have any questions or would like to learn how your business can benefit from the enhanced OMMITC, please contact us.
Yours very truly,
Williams & Partners