Ontario Made Manufacturing Investment Tax Credit: A Strategic Boost for Manufacturers 

While capital investment decisions are carrying more weight than ever, Ontario is giving manufacturers a reason to act now. 

Ontario’s manufacturing sector continues to face a complex mix of global competition, supply chain pressure, and rising input costs. In response, the province has doubled down on one of its most impactful incentives, the Ontario Made Manufacturing Investment Tax Credit (OMMITC). 

Originally introduced in 2023, the OMMITC was enhanced in 2025, with the refundable rate increased for CCPCs and a non-refundable version expanded to corporations that are not CCPCs. With enhanced rates, expanded eligibility, and continued government backing through 2026, the OMMITC remains a central pillar in Ontario’s strategy to drive industrial investment, productivity, and long-term competitiveness. 

Understanding the OMMITC 

The OMMITC is a corporate income tax credit designed to reduce the cost of capital investments for manufacturers operating in the province. 

Based on the latest confirmed updates, the program offers: 

• A 15% refundable tax credit for Canadian-controlled private corporations (CCPCs)  
• A 15% non-refundable tax credit for non-CCPCs under the expanded program  
• A maximum annual credit of $3 million, based on up to $20 million in eligible expenditures  

Eligible investments include capital expenditures in: 

• Manufacturing and processing buildings  
• Machinery and equipment used in production  

For the temporary enhanced and expanded measures, eligible property must become available for use on or after May 15, 2025, and before January 1, 2030.

Unlike traditional grant programs, the OMMITC operates through the tax system, meaning there is no intake window or competitive application process. Instead, companies claim the credit as part of their annual corporate tax filing. 

Funding Snapshot: OMMITC 

The OMMITC is structured to incentivize large-scale capital investment while supporting both private and public manufacturers operating in Ontario. 

Funding Amount 

This program provides substantial tax relief tied directly to capital expenditures, including: 

• 15% tax credit on eligible investments  
• Up to $20 million in annual eligible expenditures  
• Maximum $3 million credit per year per corporation (shared across associated groups)  

Eligible Applicants 

This program has broad eligibility across the manufacturing ecosystem, including: 

• CCPCs (refundable credit)  
• Non-CCPCs (non-refundable credit under expanded program)  
• Must have a permanent establishment in Ontario  

Eligible Projects 

This program is focused on capital investment that drives production capacity, including: 

• Construction or renovation of manufacturing buildings  
• Acquisition of machinery and processing equipment  
• Assets must be used for manufacturing or processing in Ontario  

Timeline  

This program has a defined investment window with a clear planning horizon, with dates including: 

• Program applies to eligible assets available for use between May 15, 2025, and December 31, 2029  
• Program scheduled to expire January 1, 2030 

Strategic Implications for Ontario Manufacturers 

The enhanced OMMITC is more than a tax credit. It is a lever for capital planning and competitive positioning. 

With the rate increased to 15%, manufacturers can now recover a meaningful portion of large capital expenditures, improving project return on investment (ROI) and accelerating payback periods. This is particularly relevant in sectors facing margin compression and global pricing pressure. 

From a strategic standpoint, the credit enables manufacturers to: 

• Advance automation and digital transformation initiatives  
• Re-shore or expand domestic production capacity  
• Offset rising costs tied to tariffs and supply chain disruption  
• Stack funding alongside programs like Scientific Research and Experimental Development (SR&ED) for innovation-driven projects  

Ontario’s 2026 budget and recent government announcements continue to position the OMMITC as an active support measure for manufacturing investment.

For businesses planning capital investments over the next three to five years, this creates a clear window to act. 

Timing Matters: Planning Within the 2025–2030 Window 

The enhanced OMMITC is time-bound, and that has real implications for capital planning. 

The 15% rate applies only to assets available for use before 2030, creating a defined window for investment decisions.  

Manufacturers delaying capital expenditures risk: 

• Missing the enhanced credit rate  
• Reducing total claimable value  
• Losing alignment with other complementary incentives  

At the same time, forward-looking companies are using this window to: 

• Bundle multiple capital projects into a single tax year  
• Optimize expenditure timing to hit the $20 million cap  
• Integrate tax credits into long-term financial modeling  

This shift from reactive to proactive planning is where the real value of the program is realized. 

Get Tax Credit Support with Ryan 

The OMMITC continues to play a central role in shaping the province’s industrial landscape. With enhanced funding, expanded eligibility, and a clear policy direction, the program provides manufacturers with a practical way to reduce costs while investing in future growth. 

The Ryan Government Funding team works closely with manufacturers to identify eligible investments, structure claims, and maximize funding outcomes across provincial and federal programs. 

If your organization is planning capital investments in Ontario, now is the time to act. Connect with our team to assess your eligibility and build a funding strategy that supports your next phase of growth.