To strengthen its manufacturing sector and protect local jobs from the effects of international trade pressures, the Ontario government has announced an expansion of the Ontario Made Manufacturing Investment Tax Credit program, with a total investment of C$1.3 billion over three years. The initiative aims to reduce costs for businesses investing in property, machinery and equipment for manufacturing or processing activities within the province.
As part of the 2025 provincial budget, it is planned to increase the tax credit rate from 10 percent to 15 percent for private companies controlled by Canadian entities, as well as to extend eligibility to companies not controlled by Canadian capital. The credit will remain nonrefundable and will be limited to a maximum of C$3 million per company per year.
This measure is in direct response to the current climate of global uncertainty-particularly the recent tariff policies introduced in the United States-and is intended to retain and attract new industrial investment. Employing more than 830,000 people, the manufacturing sector is a key pillar of Ontario's economy and its international trade relations.
Implications for Italian Companies
Thanks to this new incentive, Italian companies already present in Ontario, or interested in starting new businesses in the province, will be able to access concrete tax support for investments in capital goods.
Whether it's automated machinery, food processing technologies, green transition solutions or advanced industrial systems, Italian companies that choose to expand their production capacity in Ontario will be able to optimize their operating costs and strategically position themselves in one of North America's major manufacturing hubs.
For more information on how to access the tax credit and investment opportunities in the province, Italian companies can contact Ontario's Ministry of Economic Development directly:
Colin Blachar, Minister's Office- [email protected]
Scott Blodgett, Communications Branch- [email protected]
