The Ontario government is announcing plans for a new Ontario Made Manufacturing Investment Tax Credit to help local manufacturers grow, innovate, become more competitive, and create jobs. This will help the province’s economy attract additional investment.
The government will propose legislation in the upcoming budget for 2023 that, if approved, would establish a brand-new refundable 10% corporate income tax credit for private corporations controlled by Canadians on eligible investments in buildings, machinery, and equipment for use in manufacturing or processing in the province. This credit would be available for a maximum of $2 million per year.
Premier Doug Ford stated, “This new tax credit will give Ontario-based manufacturers another reason to invest in Ontario-grown, Ontario-made innovation and expand operations.” Our government is working around the clock to make sure that Ontario’s world-class manufacturing sector has the right conditions to grow and create more jobs as we navigate global economic uncertainty.
If approved, the Ontario Made Manufacturing Investment Tax Credit would provide qualifying businesses with an estimated $780 million in Ontario income tax support over the next three years. One of the many measures the government has taken since 2018 to make Ontario more competitive by lowering costs for businesses is the savings from the new tax credit.
Minister of Finance Peter Bethlenfalvy stated, “Our government is continuing to bring back the province’s manufacturing sector by attracting key investments and creating and protecting jobs in communities across the province.” The brand-new Ontario Made Manufacturing Investment Tax Credit is only one component of our strategy to construct a robust economy for the present and the future.
More than 150 investment deals from a wide range of industries, including automotive, technology, manufacturing, and life sciences, were signed in Ontario in 2022. Thousands of well-paying jobs will be created and retained as a result of these investments. The province of Ontario’s Plan to Build will continue to strengthen the province’s competitive edge and encourage existing businesses to expand, ensuring that the products of the future will be manufactured locally.
In the 2023 Budget, which will be released tomorrow, March 23, the government will provide additional details on its strategy for constructing a strong Ontario and navigating these uncertain economic times.