Tax credits don’t usually make for thrilling reading—but Ontario’s Bill 68 might be an exception, especially if you’re a manufacturer planning to invest in new buildings or equipment.
Bill 68 (Plan to Protect Ontario Act, Budget Measures, 2025 No. 2) includes an enhanced and expanded Ontario Made Manufacturing Investment Tax Credit (OMMITC). In plain terms: the province is offering richer tax credits to encourage manufacturers to invest in Ontario—and more businesses can now take part.
Here’s what changed, what to watch for, and how to avoid leaving money on the table.
What’s New Under Bill 68?
- A Bigger Credit for CCPCs
If you’re a Canadian-controlled private corporation (CCPC), good news:
– The refundable OMMITC rate increased from 10% to 15%.
– It applies to eligible property that becomes available for use on or after May 15, 2025.
Translation: the same investment now delivers a larger refund—without buying an extra machine.
- A Higher Annual Cap
The maximum annual refundable credit for CCPCs has increased from $2 million to $3 million. - Non-CCPCs Are Now Invited to the Party
For the first time, non-CCPCs—including publicly traded and foreign-owned manufacturers—can claim a 15% non-refundable OMMITC. - Timing Matters
Eligibility depends on when property becomes available for use under the Income Tax Act.
The Bottom Line
Bill 68 makes the OMMITC more generous and more accessible, but timing and documentation still matter. Here are tips to make the most of your OMMITC Claim:
It’s All About “Available for Use” Dates
The new, juicier 15% credit kicks in for buildings, machinery and equipment that becomes “available for use” on or after May 15, 2025. It doesn’t matter when you paid for it—what matters is when you could actually start using it.
Year-End Quirks
If your company’s year-end is, say, September 30, 2025, you might have some assets at the old 10% rate and some at the new 15% rate—all in the same tax return! It is hard for us to tell when something is available for use by looking at your general ledger. Please provide some commentary on when the assets you purchased became available for use, so we can ensure that the claim is maximized.
When Was This Announced?
The Ontario government introduced the idea in the 2025 Budget (May 15, 2025), but the official rules were passed and became law on November 27, 2025. If you filed your tax return before November 27, 2025, there may be an opportunity to amend your return and claim the additional credit.
How Do You Actually Claim?
Easy: let us know about any new buildings or equipment, and make sure you have the paperwork (invoices, contracts, proof of use, etc.). The OMMITC gets claimed right on your T2 corporate tax return—so don’t be shy about flagging those investments!
Pro Tip: The earlier you gather your docs and tell us about new assets, the smoother (and more lucrative) your claim will be.
For consultation and guidance for your business, contact us.
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Disclaimer
The information contained in this article is general in nature and is based on proposals and legislation that may be subject to change. It is not, and should not be interpreted as, accounting, legal, or tax advice, nor does it constitute a professional opinion provided by our firm to the reader. The material may not be applicable to specific situations or business needs and may require consideration of additional factors not discussed here. Readers should consult a qualified professional before making decisions based on this information.