Updated July 2026 · Verified against Government of Ontario (administered by Canada Revenue Agency via T2 return) guidelines
▲ Growing ✓ First-Timer Friendly Tax Credit Offset Est. 2023
Tax Credit Provincial Active

Ontario Made Manufacturing Investment Tax Credit (OMMITC)

Government of Ontario (administered by Canada Revenue Agency via T2 return)
Maximum Credit
15% credit, up to $3M per year
Expenditures must be incurred on or before December 31, 2029 (credit repealed...
Visit Official Program →
Difficulty
Easy
Payment
Tax Credit Offset
Trend
Growing
First-Timers
Friendly ✓
Credit rate
15%
Ontario Made Manufacturing Investment Tax Credit (OMMITC) provides Up to $3,000,000 refundable tax credit per year (15% of eligible Ontario manufacturing capital expenditures); available until December 31, 2029. Refundable 15% provincial corporate income tax credit for Canadian-controlled private corporations (CCPCs) investing in eligible Ontario manufacturing buildings, machinery, and equipment. Expenditures must be incurred on or before December 31, 2029 (credit repealed January 1, 2030); claimed annually on the T2 corporate income tax return.

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Eligibility & Details

What this program funds and who can apply

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Program Description

Refundable 15% provincial corporate income tax credit for Canadian-controlled private corporations (CCPCs) investing in eligible Ontario manufacturing buildings, machinery, and equipment. Introduced in Ontario's 2023 budget and enhanced to 15% effective May 15, 2025, the credit applies to capital expenditures up to $20 million per year (maximum $3 million credit) and sunsets December 31, 2029. A parallel non-refundable 15% Expanded OMMITC is available for non-CCPC corporations.

Eligibility Requirements

  • Must be a Canadian-controlled private corporation (CCPC) throughout the entire taxation year
  • Must have a permanent physical establishment in Ontario (office, factory, or workplace) during the taxation year
  • Must not be exempt from Ontario corporate income tax
  • Eligible assets: Class 1 buildings acquired, constructed or renovated and used for manufacturing or processing IN ONTARIO, with at least 90% of floor space so used, becoming available for use after March 22, 2023
  • Eligible assets: Class 53 machinery and equipment used to manufacture or process goods in Ontario, acquired after March 22, 2023 (transitioning to Class 43(a) after 2025)
  • Expenditures must be incurred on or before December 31, 2029
  • The 15% rate requires the property to become available for use within the taxation year and on or after May 15, 2025 but before January 1, 2030; property that becomes available for use after December 31, 2029 still earns the 10% rate if the expenditure was incurred before January 1, 2030
  • Non-CCPC corporations may claim the Expanded OMMITC at the same 15% rate on a non-refundable basis, with its own window: the expenditure must be incurred on or after May 15, 2025 and before January 1, 2030, and the property must become available for use in the taxation year and on or after May 15, 2025 — it does not reach back to March 2023 the way the CCPC credit does
  • Recapture: if the property is disposed of, changed to a non-manufacturing or non-processing use, or removed from Ontario within five years of claiming the credit, a repayment is required
Provinces
Ontario
Industries
Manufacturing
Business Stage
Growth Expansion Established

Quick Assessment

Difficulty
Easy
Competition
Low
First-Timer
Friendly

Funding Details

Amount
Up to $3,000,000 refundable tax credit per year (15% of eligible Ontario manufacturing capital expenditures); available until December 31, 2029
Type
Tax Credit
Level
Provincial
Credit rate
Up to 15% of eligible costs
Deadline
Expenditures must be incurred on or before December 31, 2029 (credit repealed January 1, 2030); claimed annually on the T2 corporate income tax return

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Dec 31, 2029
Approval
Entitlement
Accessibility
4/5

Accessible — straightforward requirements

Competition
1/5

Low competition — good odds of approval

Difficulty
2/5

Easy — minimal documentation

Approval Rate
Processing Time
Budget Trend
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How to claim

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

The $20M per-year expenditure cap is shared among associated corporations (related companies under common control).

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Rejection Pitfalls 8

  • Corporation is not a CCPC throughout the entire taxation year (e.g. became foreign-controlled mid-year)
+7 more pitfalls
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Success Profile

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Evaluation Criteria

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How the Government of Ontario judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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ApplicationNo written form
Judged on5 criteria
Can reject you5 rules
To attach3 documents

Distilled from 6+ source documents, condensed into one brief. Sources as of 2026-09-07.

6 of the sources

What the Government of Ontario favours

Statutory tax-credit calculation; eligibility review, not competitive◦

“This is a statutory tax-credit calculation and eligibility review, not a competitive merit assessment.”

The form

There is no stand-alone application to write: the credit is claimed by filing Schedule 572 with the corporation's T2 return, normally by the corporation or its tax preparer.◦

Judged against4 questions · 5 criteria

  1. 1

    Is the corporation a qualifying corporation?

    Show them Show CCPC status through the whole taxation year, Ontario income-tax exemption status, and the physical Ontario permanent establishment.◦

    In the funder’s words · 1
    • Corporation qualification
  2. 2

    Are the expenditures eligible and correctly calculated?

    What to show, and the funder’s 2 criteria behind it in Premium

  3. 3

    Are any expenditures excluded by the statute?

    What to show, and the funder’s 1 criterion behind it in Premium

  4. 4

    Is this scored on merit or on statute?

    What to show, and the funder’s 1 criterion behind it in Premium

Where applicants failin the Government of Ontario’s words

“You cannot claim a credit for any expenditure that was incurred under a contract with a person or partnership with which the corporation does not deal at arm's length at the time it was incurred.”

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2 more rules that can reject you · 4 more criteria

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Do you pass?5 checks

Each one can rule you out. Tick the ones you meet.

Your business

  • CCPC throughout the taxation year

    For the refundable OMMITC, the corporation is a CCPC throughout the taxation year.

  • Physical permanent establishment in Ontario

    The corporation carries on business in Ontario through a physical permanent establishment in Ontario.

The project

  • Expenditures incurred by December 31, 2029

    Expenditures must be incurred on or before December 31, 2029.

2 more checks

1 thing this funder says you do NOT need, in Premium.

Documents to attach3

Ticks are kept on this device.

The money

Credit rate and cap15%; max $3 million a year

15% refundable corporation income tax credit on eligible investments up to $20 million in a tax year, for a maximum credit of $3 million a year, for eligible investments made after May 14, 2025 and before 2030.

StackingNo capital cost reduction; not government assistance

For this credit calculation only, the regional opportunities investment tax credit and the amount calculated for this credit are deemed not to be government assistance and do not reduce capital cost.

What it pays for · 2
  • Eligible investments are expenditures for capital cost allowance (CCA) classes 1 and 53.
  • After 2025, eligible investments in machinery and equipment are capital expenditures for assets included in class 43(a) that are used in the manufacturing or processing of goods for sale or lease.
What it does not pay for · 2
  • Expenditures under a contract with a non-arm's-length person or partnership.
  • Expenditures by a predecessor corporation that was not a qualifying corporation in an amalgamation.

From application to money

  1. File the T2 claimFile Schedule 572 with T2 return
  2. Available-for-use timingAvailable-for-use date sets 15% rate
  3. Repayment if use changesRepayment if disposed, converted, removed in five years
In the funder’s words · 3
File the T2 claim
Complete Schedule 572, file it with the T2 corporation income tax return, and enter the refundable claim on Schedule 5 line 474 and any repayment on line 281.
Available-for-use timing
The available-for-use date determines whether the enhanced 15% rate applies.
Repayment if use changes
A repayment may be required if the property is disposed of, converted to a non-manufacturing or processing use, or removed from Ontario within the five following years.

Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.

What's in this Playbook

Everything you need to claim OMMITC

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Acquire Eligible Capital Assets Invest in qualifying manufacturing buildings (Class 1), machinery, or equipment (Class 53/Class 43) in Ontario. The expenditure must be incurred on or before December 31, 2029. The available-for-use date sets the RATE: 15% if the property becomes available for use in the taxation year and on or after May 15, 2025 but before January 1, 2030; 10% if it becomes available for use after December 31, 2029 with the expenditure incurred before January 1, 2030. Document exact acquisition, expenditure and available-for-use dates and the manufacturing-use purpose.

Required Documents 7

✓ T2 Corporation Income Tax Return (annual)
✓ Ontario Schedule T2SCH522 — Ontario Made Manufacturing Investment Tax Credit (filed with T2)

Eligible Expenses 4

Ineligible Expenses 6

Claim timing

Deadline Notes

Ineligible Organizations

Premium The full guide for this program also covers:
  • 4 more application steps
  • 5 more required documents
  • 4 eligible expenses
  • 6 ineligible expenses
  • Claim timing
  • Deadline notes
  • Ineligible organizations

Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Clean Technology Manufacturing Investment Tax Credit (Federal CTM ITC, ID 345) Ontario IESO XLerate Program Scientific Research and Experimental Development (SR&ED, ID 4) Accelerated Capital Cost Allowance (CCA)
Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk

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How OMMITC Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Ontario Made Manufacturing Investment... Up to $3,000,000 Easy Tax Credit Offset Expenditures must be...
Clean Technology Manufacturing Invest... Up to 30% refundable tax credit Moderate Tax Credit Offset Ongoing (January 1, 2024...
Scientific Research and Experimental ... Up to 35% refundable ITC Hard Tax Credit Offset Ongoing
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Between intakes — the...

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Frequently Asked Questions

Quick answers to the questions founders most often ask about OMMITC

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Does my company need to be profitable to benefit?
For a CCPC, no — the OMMITC is refundable, so even with no Ontario taxes owing you receive the full credit as a cash refund after filing your T2. For a non-CCPC claiming the Expanded OMMITC the credit is non-refundable, but unused amounts carry forward against taxes payable in up to 10 subsequent taxation years, so a loss year defers rather than destroys the benefit.
What is the $20M cap and does it apply per entity or per group?
The $20M eligible expenditure cap (yielding a maximum $3M credit) is shared among associated corporations — companies under common control are treated as one group for this cap. If you have multiple Ontario manufacturing entities, coordinate capital spending plans across the group.
What types of equipment qualify?
Class 53 machinery and equipment (before 2026) or Class 43(a) assets (after 2025) used primarily to manufacture or process goods for sale or lease in Ontario. Class 1 manufacturing buildings (90%+ of floor space used for manufacturing) also qualify. Standard office equipment, vehicles, and retail fixtures do not.
My equipment won't be commissioned until 2030 — am I out?
No. Only the EXPENDITURE must be incurred on or before December 31, 2029. If the property becomes available for use after that date, you still claim the credit at the 10% rate rather than 15%, provided the expenditure was incurred before January 1, 2030.
Can the credit be taken back?
Yes. If within five years the property is disposed of, its use changes to a non-manufacturing or non-processing use, or it is removed from Ontario, a repayment is required — the lesser of the credit claimed and a proportionate amount based on fair market value (or arm's-length proceeds) over the original capital cost. This applies to dispositions, conversions or removals on or after May 15, 2025.
Does the OMMITC expire?
Yes — the credit is repealed effective January 1, 2030, and expenditures must be incurred on or before December 31, 2029. Plan major capital investments accordingly.

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