The Ontario government is expanding its support for the manufacturing sector with a $1.3 billion investment over three years.
The funding will enhance the Ontario Made Manufacturing Investment Tax Credit to help businesses lower costs and encourage investment in buildings, machinery, and equipment used for manufacturing and processing.
The proposed changes, part of the upcoming 2025 Ontario Budget, would increase the tax credit rate for Canadian-controlled private corporations from 10% to 15%. The credit will also be available to non-Canadian-controlled companies as a non-refundable tax credit. Eligible companies could receive up to $3 million in tax support annually.
Finance Minister Peter Bethlenfalvy said the move is in response to economic challenges, including U.S. tariffs. “Our plan to protect Ontario will bring in new investments to create jobs and opportunities for our manufacturing workers,” he said.
Economic Development Minister Vic Fedeli added the announcement will support more than 830,000 manufacturing workers in the province. “We are doubling down on our plan to bring in new investments and good-paying jobs,” he said.
The tax credit was first introduced in 2023 to help Ontario manufacturers stay competitive. The changes will apply to investments made between May 15, 2025, and 2030.
More details will be available in the full 2025 budget, set to be released on May 15.
(Written by: Evan Gibb)
