Ontario Expands Tax Credit with $1.3 Billion Boost to Shield Manufacturing Jobs from U.S. Tariff Fallout
Oakville, ON — The Ontario government is moving to protect the province’s manufacturing workforce with a $1.3 billion expansion of the Ontario Made Manufacturing Investment Tax Credit, as part of its broader strategy to counter the economic pressure created by newly imposed U.S. tariffs.
Finance Minister Peter Bethlenfalvy announced the investment Monday in Oakville, outlining how the proposed enhancements will be included in the upcoming 2025 Ontario Budget, scheduled for release on May 15. The changes would raise the tax credit rate from 10% to 15% for Canadian-controlled private corporations, while extending eligibility to include non-Canadian-controlled corporations via a new 15% non-refundable tax credit.
“Manufacturing workers here in Ontario are already feeling the impact of President Trump’s tariffs, including job losses that are the direct result of the economic uncertainty he has caused,” Bethlenfalvy said in a statement. “Our plan to protect Ontario will bring in new investments to create new jobs and opportunities for our world-class manufacturing workers.”
The revised tax credit is expected to offer up to $3 million annually per qualifying corporation for investments in buildings, machinery, and equipment used in manufacturing or processing in Ontario.
Vic Fedeli, Minister of Economic Development, Job Creation and Trade, called the move a “doubling down” on efforts to safeguard Ontario’s 830,000 manufacturing jobs.
Since its launch in the 2023 Budget, the Ontario Made Manufacturing Investment Tax Credit has aimed to bolster local industry competitiveness. The province estimates that the enhanced program will deliver $1.3 billion in additional income tax relief between 2025 and 2028.
Key industry leaders were quick to voice support. Vincent Caron of Canadian Manufacturers & Exporters praised the Ford government’s “important commitment to Ontario’s prosperity,” while Flavio Volpe of the Automotive Parts Manufacturers’ Association highlighted the credit’s expanded eligibility as critical amid shifting global investment trends.
Brian Kingston of the Canadian Vehicle Manufacturers’ Association, Daniel Tisch of the Ontario Chamber of Commerce, and Giles Gherson of the Toronto Region Board of Trade also welcomed the announcement, stressing its role in stabilizing Ontario’s economy and boosting the province’s global competitiveness.
More information about the full scope of the province’s manufacturing and economic plan will be detailed in the 2025 Ontario Budget.
Follow GTA Today on social media for more local news and updates. #GTAToday
