Canada’s manufacturing tax credit offers businesses deductions or credits for investing in manufacturing equipment or processes, aiming to boost innovation and productivity. These incentives often apply to machinery purchases and are available through federal and provincial programs such as Ontario Made Manufacturing Investment Tax Credit(OMITC) in Ontario and The Investment and Innovation Tax Credit Program(C3i).
Funding
This tax credits typically fund a percentage of eligible capital investments, ranging from 10% to 50%, depending on the province and program, focusing on machinery, equipment, and innovation upgrades.
Eligibility
Eligibility for this tax credits requires businesses to invest in qualifying manufacturing or processing equipment, meet regional or industry-specific criteria, and operate within certain sectors, like manufacturing, mining, or related industries.
Application
The application process involves completing forms detailing equipment purchases, financial information, and eligibility criteria, then submitting them to the relevant provincial or federal tax authority during tax filings.
Management
We support our clients throughout the claim process, from the request for certificates to the delivery of tax forms.
How Long Does It Take To Receive Funding?
The time it takes to receive manufacturing tax credit funding in Canada can vary significantly based on the province and the specific tax credit program. Generally, the processing time ranges from a few months to over a year.
Can I Use An External Consultant For Assistance?
Yes, you can use an external consultant to assist with Manufacturing tax credit application process. Our consultants can provide valuable expertise, ensuring that your application is compliant with the rules and maximizing the available credits.
Can I Claim Both SR&ED Tax Credit and Manufacturing Tax Credit?
Yes. It is possible to claim SR&ED tax credit even if you are receiving Manufacturing tax credit funding. However, an analysis needs to be conducted to avoid any double-dipping risk.
