Ontario to introduce new 10 per cent income tax credit for manufacturing sector
Ontario manufacturers would be able to get up to $2 million a year through a new tax credit the government is proposing in its upcoming budget.
The 10 per cent refundable corporate income tax credit could be used by Canadian-controlled private corporations with a permanent location in Ontario on qualifying investments in buildings, machinery and equipment for use in manufacturing or processing.
Premier Doug Ford, along with his finance and economic development ministers, made the announcement Wednesday, one day before the budget is set to be tabled.
“This new tax credit will help local manufacturing companies grow, innovate, become more competitive, and most importantly, create good-paying jobs,” Ford said.
The government is estimating the Ontario Made Manufacturing Investment Tax Credit would cost $780 million over three years.
The tax credit would be available for qualifying investments of up to $20 million a year.
The president and CEO of Canadian Manufacturers & Exporters said his group supports the new tax credit.
“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,” Dennis Darby wrote in a statement.
The province says the manufacturing sector, a key contributor to Ontario’s economy, saw a decline of over 300,000 workers by 2018 compared to 2004.
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