2026 UPDATE: Get 15% 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 15% of the cost. For most of our customers, that means significant savings on their capital investments.

The program was first introduced in the 2023 Ontario Budget at a 10% rate. In November 2025, the Ontario government enacted Bill 68, which brought major enhancements:

• The rate increased from 10% to 15% for Canadian-controlled private corporations (CCPCs)
• The maximum annual credit jumped from $2 million to $3 million
• A new "Expanded OMMITC" was created for non-CCPCs (publicly traded and foreign-owned companies)
• A sunset date was set: the program runs until January 1, 2030

These changes are already in effect for eligible investments made available for use on or after May 15, 2025.

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.

Do you Qualify? (Probably yes)

Basic Requirements

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

For CCPCs (Refundable 15% Credit)

Operates in Ontario: Your business must have a physical permanent establishment 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.

For Non-CCPCs (Non-Refundable 15% Credit) — NEW

If your corporation is publicly traded or foreign-owned, you can now qualify for the Expanded OMMITC:

Not a CCPC: Your corporation is not a Canadian-controlled private corporation throughout the taxation year.

Not Tax-Exempt: Your company must not be exempt from income tax for the taxation year.

Operates in Ontario: Your business must carry on business in Ontario through a physical permanent establishment.

Eligible Investment: The investment must be made available for use on or after May 15, 2025, and before January 1, 2030.

The non-refundable credit can be carried forward for up to 10 taxation years if you can't use it all in the year you claim it.

Good to Know

• The enhanced 15% rate applies to investments available for use from May 15, 2025, to December 31, 2029.
• 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.
• The $20 million expenditure limit is shared among associated corporations.

What's Not Covered

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

NEW: The Repayment Rule

Starting May 15, 2025, there is a repayment provision you need to be aware of. If you claim the credit and then within five years:

• Dispose of the equipment (sell it),
• Change its use to a non-manufacturing purpose, or
• Remove it from Ontario,

you may be required to repay part or all of the credit. The repayment is the lesser of the credit you received and a proportionate amount based on the fair market value or sale price versus the original cost.

What this means for you: Keep your equipment in Ontario and use it for manufacturing for at least five years after claiming the credit. For most of our customers, this is a non-issue, as you're buying equipment to grow your business, not to flip it.

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.

CCA Class Change After 2025

A technical note for your accountant: for equipment purchased before 2026, the relevant CCA class is Class 53. For equipment purchased after 2025, eligible investments shift to property described in paragraph (a) of Class 43 (which covers manufacturing and processing machinery and equipment, excluding powered industrial lift trucks and portable tools acquired for rental).

The practical impact for most of our customers is minimal, since your laser welder still qualifies either way. But make sure your accountant is aware of the class change when preparing Schedule 572.

Making Your Claim: Step by Step

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).

Step 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.

Part 2 – for your equipment purchase:

• CCA class (Class 53 for equipment available for use before 2026; Class 43(a) for equipment after 2025. 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 (15% of your eligible investment available for use on or after May 15, 2025).

Step 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.

Avoid these common mistakes

Wrong timing: Ensure equipment is "available for use" on or after March 23, 2023 (for 10% rate) or on or after May 15, 2025 (for 15% rate).

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

Wrong CCA class: Use Class 53 for equipment available for use before 2026, and Class 43(a) after 2025.

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!)

Selling or moving equipment too soon: The new 5-year repayment rule means you could owe the credit back if you dispose of, convert, or remove the equipment from Ontario within five years.

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.

Why Choose Stygvir Laser Systems for Your OMMITC Claim?

Investing in new equipment is a big move—but with Stygvir, you don’t just upgrade your production, you maximize your OMMITC tax credit with zero hassle.

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✓ Guaranteed OMMITC-Eligible Equipment

Our laser systems are manufacturing & processing assets under CCA Class 53, the exact category the OMMITC was designed for. That means no eligibility doubts, no wasted claims, just 15% back.

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✓ We Handle the Paperwork

Filing for OMMITC is simple, if you have the right documentation. We provide:

• Installation certificate with "available for use" dates.
• Detailed equipment specifications matching CCA Class 53.
• Delivery records proving purchase and first-use dates.
• Full technical documentation in CRA-friendly format.

With these, your claim process is clear, fast, and stress-free.

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✓ Support Beyond the Sale

We’re not just another vendor, we’re helping customers grow. Whether you need technical support to keep your laser running smoothly or business guidance to maximize your OMMITC claim, we’ve got your back.

• Expert tech support for seamless operation.
• CRA-compliant documentation for stress-free filing.
• Claim guidance so you don't leave money on the table.

With Stygvir, you get world-class equipment, expert support, and a partner invested in your success – on both the technical and financial side.

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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!