The provincial government estimates its Ontario Made Manufacturing Investment Tax Credit will cost $780 million over three years. PHOTO courtesy BLM
The Ontario government is looking to give the province’s manufacturers trying to grow and innovate up to $2 million a year through a new tax credit.
The 10% tax refundable corporate income tax credit proposed by the government can be used by Canadian-controlled private corporations with a permanent location in Ontario. Qualifying “growth and innovation” investments include spending on buildings, machinery and equipment for use in manufacturing or processing.
Ontario Premier Doug made the announcement of the tax credit one day before his government tables its budget and said it was part of his government’s plan to rebuild the province’s manufacturing sector.
“As we navigate global economic uncertainty, and as we face new challenges like protectionist legislation in the United States, we know there’s more to do to help our manufacturing companies remain competitive,” Ford said. “… This new tax credit will help local manufacturing companies grow, innovate, become more competitive, and most importantly, create good-paying jobs.”
The government estimates the Ontario Made Manufacturing Investment Tax Credit will cost $780 million over three years.
Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, said his organization supports the move.
“This new credit will go a long way to broadening our industrial strategy — providing predictable funding for essential equipment purchases and increased productivity to enable business growth,” Darby wrote in a statement published by CBC News.
The Ontario Chamber of Commerce meanwhile had provided the government with budget recommendations to “foster an environment that supports long-term, sustainable economic growth.”
“We know from the OCC’s 2023 Ontario Economic Report that many small businesses would like to see public policies that support their immediate financial and operational needs, while large businesses are more interested in broader workforce development and health care challenges,” said Rocco Rossi, President and CEO, of OCC.