What Is the Ontario-Made Manufacturing Investment Tax Credit?

What Is the Ontario-Made Manufacturing Investment Tax Credit?

Through the Ontario-Made Manufacturing Investment Tax Credit, eligible manufacturers can claim a 10% refundable tax credit on qualifying capital investmentsโ€”up to $2 million annually. Thatโ€™s a significant return that can directly offset the cost of new machinery or facility upgrades and reinvest capital back into your business.

Purchases made on or after March 23, 2023 may qualify for this incentive. This program was introduced to strengthen Ontarioโ€™s manufacturing sector, giving local businesses like yours a powerful incentive to expand, modernize, and stay competitiveโ€”without carrying the full financial burden alone.


You may be eligible for the tax credit if you've made or plan to make investments such as:


โœ… New machinery and equipment used in manufacturing or processing
โœ… Acquisition or upgrades of industrial facilities used for manufacturing


Application Timeline:


โœ… Approval Time: Typically 2โ€“3 months after submission

โœ… Reimbursement: Issued within 2โ€“4 weeks upon approval

โœ… Open Year-Round: You can apply any time.



Because at MEGATEL CNC, we donโ€™t just deliver machinesโ€”we deliver long-term value. Your success is our success, which is why we go beyond just selling machinesโ€”we make sure our customers have priority access to the opportunities, support, and resources they need to grow. From expert guidance to after-sales support and financial incentives like this, weโ€™re here to help you grow smarter. Weโ€™ve been supporting manufacturers across Ontario and Quebec for over 45 years, with in-house service, local expertise, and a deep understanding of what matters to your business.

โ€ŒWhy Act Now?
1. Each grant program has a limited budget
2. There is a fierce competition for grant money
3. Grants are often awarded on a first-come-first-served basis

Questions and Answers?
Question 1:
We paid a 50% deposit on the machine in February 2023 and the balance in September 2023. The machine has been operational since October 2023. Do we qualify for a claim against 50% or 100% of the machine's cost?
Answer:
You qualify for a claim against 100% of the machine's cost because it became available for use after March 22, 2023.

Question 2: We just completed the construction of a new industrial building for our business. It took three years to build, and we paid several installments to the construction firm. How much of the construction cost is eligible for a 10% refund?
Answer:
100% of the constriction cost is eligible for a 10% refund as long as the building became available for use after March 22, 2023.

Question 3: What does "becomes available for use" mean from an eligibility perspective?
Answer:
"Available-for-use" date for buildings is defined as the date when the construction, renovation or alteration of the building is complete, or the applicant first uses the building for the purpose for which it was acquired. The "Available-for-use" date for equipment is defined as the date when the applicant first uses the equipment to earn income or the date the equipment is delivered to the applicant and is capable of producing a commercially saleable product or service.

Question 4: Our operating company owns the equipment, but a related company owns the building. Do we qualify for a 10% refund against building costs?
Answer:
Yes, you qualify because a related (associated) company owns the building, not a third-party landlord.

Question 5: We financed our equipment and building, and it will take years to pay off the loans. Do we qualify for a claim against 100% of the equipment and building costs or a portion of the costs we paid off this year?
Answer:
You qualify for a claim against 100% regardless of how you've obtained financing. Please note, however, that leasing or rental costs are not eligible because you don't own the asset.

Question 6: We closed our fiscal year with losses and don't owe corporate income tax. Do we qualify?
Answer:
Yes, you qualify and could get a refund even if you don't owe corporate income tax. However, if you owe taxes from previous periods, the refund amount will be reduced accordingly.

Question 7: What kind of equipment is eligible?
Answer:
Any machinery and equipment used in the manufacturing or processing of goods for sale or lease is eligible. However, transportation equipment, including forklifts, is not eligible.

Question 8: What kind of building is eligible?
Answer:
Any industrial building with 90% of the floor space used for manufacturing or processing in Ontario is eligible

Question 9: We purchased a machine in August 2023, but our fiscal year is closed. How do we apply?
Answer:
You can apply for a 10% refund by filing an amendment to your assessed corporate income tax return (T2) and submitting a special application form with refund calculations.


Already a MEGATEL CNC customer? Letโ€™s get you started. Click to check your eligibility now.

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