Ontario Made Manufacturing Investment Tax Credit (OMMITC)
How it works
WHAT IS THE OMMITC?
The Ontario manufacturing tax credit, officially known as the Ontario Made Manufacturing Investment Tax Credit (OMMITC), encourages businesses to engage in manufacturing activities in Ontario by providing a tax credit on their eligible expenditures.
For eligible investments made after May 14, 2025, and before 2030, it offers a 15% refundable tax credit on eligible investments (previously 10%), up to a maximum of $3 million per year based on an investment limit of $20 million (shared among an associated group). Corporations other than CCPCs are now eligible for this period, receiving a non-refundable credit that can be carried forward for up to 10 years.
The OMMITC supports corporations that:
Are a CCPC (refundable credit) or, for investments made after May 14, 2025, and before 2030, a corporation other than a CCPC (non-refundable credit)
Carry on a manufacturing business in Ontario
Own or lease a permanent establishment in Ontario (e.g., an office, factory, warehouse, or through the use of substantial equipment)
Are not exempt from Ontario corporate income tax for the relevant tax year
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How it helps
Expenses That Qualify
Our in-house team of highly qualified tax and technical experts assists thousands of businesses each year to navigate complex incentives and maximize their financial returns.
For example, a manufacturing business investing $1,000,000 in a new building and $500,000 in equipment could receive a tax credit of $150,000 once these assets are available for use in 2025.
OUR METHODOLOGY
Your Path to sucesss
Leyton manages the entire claim process from mandate launch to CRA submission, so you can focus on your manufacturing operations.
Mandate Launch
Collect all required documentation including tax returns (T2), list of associated corporations, building construction/renovation/acquisition documents, and all invoices for property, machinery, and equipment with proof of payment.
Eligibility Review
Analyze expenditures and qualifications — confirming the CCPC status, Ontario permanent establishment, eligible investment classes, and applicable tax years.
Claim Preparation
Draft all required Ontario corporate tax forms and schedules to accurately claim the OMMITC refundable credit.
Submission of Claim
Provide your accountant with completed forms for submission, undertake follow-ups with the CRA, and provide full support in the event of an audit.
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Common Questions
Frequently Asked Questions
Everything you need to know before working with us.
What is the Ontario Manufacturing Tax Credit?
The Ontario Made Manufacturing Investment Tax Credit (OMMITC) is a refundable corporate income tax credit designed to support manufacturing and processing investments in Ontario. It offers a 15% refundable credit available on qualifying investments made by Canadian-Controlled Private Corporations (CCPCs) with a permanent establishment in Ontario.
Who can apply?
Canadian-Controlled Private Corporations (CCPCs) with qualifying manufacturing investments in Ontario.
What is a Canadian Controlled Private Corporation (CCPC)?
A Canadian Controlled Private Corporation (CCPC) is a corporation that meets the following criteria under the Income Tax Act:
●Privately held and incorporated in Canada
●Resident in Canada
●Not controlled directly or indirectly by non-residents, public corporations, or a combination of both
CCPCs benefit from several federal and provincial tax incentives, including the Ontario Made Manufacturing Investment Tax Credit (OMMITC), SR&ED credits, and Government Grants.
What investments qualify for the Ontario Made Manufacturing Investment Tax Credit?
Construction, acquisition, or renovation of buildings (Class 1)
Specific condition: The building (or addition) must be located in Ontario, and at least 90% of its floor space must be used for manufacturing or processing at the end of the tax year.
New or used equipment (Classes 53 and 43a)
For the period from March 23, 2023, to December 31, 2025: Class 53 machinery and equipment used primarily (more than 50%) for manufacturing or processing.
Starting in 2026: CCA Class 43(a) machinery and equipment (replacing Class 53).
Clarification on used/second-hand equipment: Used equipment is eligible provided it is acquired at arm’s length (it must not be purchased from a related person or corporation).
Available-for-use rule: The asset must become available for use during the relevant tax year.
Is Ontario Manufacturing Tax Credit refundable?
Yes, The Ontario Made Manufacturing Investment Tax Credit (OMMITC) is a refundable corporate income tax credit designed to support manufacturing and processing investments in Ontario. It is fully refundable, even if you owe no taxes.
Can I combine the Ontario Manufacturing Tax Credit with other programs?
Yes, you can stack the Ontario Manufacturing Tax Credit with SR&ED or other federal and provincial incentives.
How much can I claim?
As of May 15, 2025: Up to $3 million per year (15% credit on an annual investment ceiling of $20 million).
Before May 15, 2025: Up to $2 million per year (10% credit).
What Documents Does a CCPC Need to Claim the Ontario Manufacturing Tax Credit?
●The latest tax returns (T2) of the company
●List of associated corporations
●Building constructing / renovation / acquisition documents
●All Invoices for property, machinery, and equipment, along with proof of payment
Do I need to apply separately to the Ontario Manufacturing Tax Credit?
The credit is claimed through your Ontario corporate income tax return, with support from your tax team or Leyton.
Why Choose Leyton?
With the help of our team of experts our goal is to make claiming your OMMITC credit simple, efficient, and stress-free.