You Might Be Leaving 10–15% on the Table (Ontario Manufacturers)
If you’re a manufacturer in Ontario and you’ve purchased equipment recently, or you’re thinking about it, there’s a good chance you’re overlooking something important.
There’s a provincial tax credit that could return 10–15% of your investment back to you.
And most people aren’t factoring it into their decision.
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What Is It, Really?
The Ontario Made Manufacturing Investment Tax Credit (OMMITC) is designed to encourage manufacturers to invest in their own operations.
In simple terms:
If you invest in manufacturing equipment or facilities in Ontario, the province gives you a tax credit based on that investment.
That includes machinery, equipment, and even buildings used for manufacturing.
This has been in place since March 2023, and it was recently expanded, meaning more businesses may now qualify.
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Why This Matters More Than You Think
We talk to a lot of small and mid-sized shops, and one of the most common conversations goes like this:
“I know we need to upgrade… I’m just not sure if now is the right time.”
Fair enough.
But what’s often missing from that conversation is the full picture.
If you’re investing in equipment anyway, and you can recover 10–15% of that cost, that changes the math.
A $25,000 machine is no longer just $25,000.
Now you’re potentially getting $2,500 to $3,750 back, on top of standard depreciation.
That doesn’t make the decision for you, but it should absolutely be part of how you evaluate it.
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What Kind of Equipment Qualifies?
Generally speaking, the credit is aimed at real manufacturing investments.
That includes:
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Laser systems
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Automation equipment
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Manufacturing and processing tools
It also includes buildings used primarily for manufacturing.
If the investment is directly tied to producing goods, there’s a good chance it falls within the scope.
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Who This Applies To
If you’re:
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Running a small to mid-sized manufacturing business
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Operating in Ontario
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Investing in equipment or planning to
You should at least be asking the question.
We’re seeing this apply to:
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Businesses upgrading older equipment
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Companies looking to improve efficiency or output
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The Bigger Picture
This isn’t just about getting money back.
It’s about lowering the barrier to making the right decision for your business.
A lot of shops delay upgrades because the upfront cost feels heavy. That’s understandable.
But when programs like this exist, they’re meant to reduce that hesitation and encourage growth.
The shops that move forward with the right equipment tend to:
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Increase production capacity
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Improve consistency
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Open up new types of work
And over time, that compounds.
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A Quick Note
We’re not tax advisors, and we’re not here to tell you what you do or don’t qualify for.
But we are seeing more manufacturers take advantage of programs like this, and it’s worth having a conversation with your accountant or a funding specialist to understand how it applies to your situation.
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Final Thought
If you’re already thinking about investing in equipment, don’t make that decision in a vacuum.
Make sure you’re looking at the full picture.
Because there’s a good chance you’re not just buying a machine.
You’re making an investment that the province is actively helping to support.