Get 10% Back on Your New Manufacturing Equipment in Ontario (OMMITC)

What is OMMITC?

Ontario Made Manufacturing Investment Tax Credit (OMMITC) is a program aimed to bolster Ontario's companies' manufacturing capabilities. Think of OMMITC as Ontario's way of saying "thanks for investing in local manufacturing." When you buy new equipment or renovate your manufacturing facility, they'll give you back 10% of the cost. For most of our customers, that means significant savings on their capital investments.
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The Four Things You Need to Know

1. It's Actually Simple

Forget what you know about government programs – this one is refreshingly straightforward. No consultants needed, no complex assessments required. Just a standard form and supporting documents.

2. You Get Real Money Back

This isn't a tax deduction – it's a refundable tax credit. That means even if you don't owe taxes, you'll still get a check. And you'll typically see that money within 3-4 months of filing.

3. Many Businesses Qualify

Whether you're a small shop, a large manufacturing facility, or just starting out – if you're a Canadian-controlled private corporation in Ontario investing in manufacturing assets, you probably qualify.

4. Financing? No Problem

Whether you're buying outright or using lease-to-own financing, you can claim this credit. Most equipment financing arrangements are structured to qualify for the credit. Just check with your financial advisor to confirm your specific arrangement qualifies.

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Do you Qualify? (Probably yes)

Basic Requirements

For your purchase to qualify for the OMMITC, your business must meet these easy requirements:

Operates in Ontario: Your business must have a physical location in Ontario (such as your workshop or retail space).

CCPC Status: Your company must be a Canadian-controlled private corporation throughout the tax year.

Not Tax-Exempt: Your company must not be exempt from Ontario corporate income tax.

Eligible Investment: The purchase must be for equipment that is used in manufacturing or processing, like a new laser microwelder.

Good to Know

• The program is ongoing (as of February 2025).
• Works for businesses of all sizes.
• Applies to both buildings and equipment.
• Application is part of your regular tax filing.
• The application is free of charge.
• Can be combined with other incentive programs.
• Your investment must be used mainly in Ontario.
• No minimum investment required.

What's Not Covered

• Non-manufacturing equipment.
• Used or refurbished equipment.
• Investments above $20 million per year.
• Non-CCPC businesses.
• Assets used primarily outside Ontario.
• Simple rental agreements (but lease-to-own is fine!)

Understanding Financing Options

Good news: Most lease-to-own arrangements qualify for the OMMITC credit. Here's what typically needs to be true:

• Your financing should be structured as a capital lease.
• The agreement should include a buyout obligation at the end.
• The equipment should appear as an asset on your balance sheet.

We recommend discussing your specific financing arrangement with your financial advisor to confirm eligibility.

Avoid these common mistakes

Wrong timing: Ensure equipment is "available for use" after March 23, 2023.

Poor documentation: Keep all purchase/financing and installation records.

Misclassifying assets: Confirm they fall under Class 53 (manufacturing equipment).

Missing deadlines: File with your regular corporate tax return.

Wrong lease structure: Make sure your lease-to-own agreement is properly set up (we can help!)

Making Your Claim: Step by Step

1. Gather your Documents

1. The official OMMITC form – T2SCH572 (download here).
2. Purchase or financing agreement.
3. Installation documentation (a Delivery Note and an Installation Certificate).
4. Equipment specifications.
5. Proof of "available for use" date (available in the Installation Certificate).

2. Complete Schedule 572

You'll file Schedule 572 (Code 2301) with your T2 tax return. Here's what you'll need to fill out:
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Part 1 – only if you're associated with other corporations:
• Check whether you're associated with other qualifying corporations.
• If yes, list their details and allocated expenditure limits.
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Part 2 – for your equipment purchase:
• CCA class (Class 53 for manufacturing equipment, Class 1 for buildings).
• Detailed description of your equipment.
• "Available for use" date (usually your installation date).
• Total capital cost (available in your commercial invoice).
• The final credit calculation (10% of your eligible investment).
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3. Submit your Claim

• Review everything with your accountant.
• They will include your claim with your T2 Corporate Tax Return.
• Expect your refund within about 3 months.

What Happens Next?

Once submitted, the CRA typically processes claims within 3-4 months. You'll receive your credit as either a refund or a reduction in taxes owed – remember, this is a refundable credit, so you'll get the money even if you don't owe any taxes.

Not a Stygvir Customer Yet?

No problem! We hope this guide was helpful. If you ever need a laser systems partner that goes above and beyond, do get in touch!