To support its manufacturing sector and shield local jobs from external trade pressures, the Government of Ontario has announced an expanded investment of $1.3 billion over three years into its Ontario Made Manufacturing Investment Tax Credit. The enhanced program aims to reduce costs for companies investing in buildings, machinery, and equipment for use in Ontario-based manufacturing or processing.

As part of its 2025 budget proposal, the province plans to raise the credit rate from 10% to 15% for Canadian-controlled private corporations and extend eligibility to non-Canadian-controlled companies. The credit will remain non-refundable and is capped at $3 million annually per corporation.

This move is a direct response to growing global uncertainty, including tariff policies introduced in the U.S., and seeks to retain and attract industrial investment. Ontario’s manufacturing sector, home to over 830,000 workers, plays a central role in the province’s economy and global trade ties.

What It Means for Italian Manufacturers

With this new incentive, Italian-owned companies or joint ventures with operations in Ontario—or those considering expansion—may now benefit directly from provincial support for capital investment.

Whether in automated machinery, food processing equipment, clean technologies, or industrial systems, Italian firms that set up or expand production capacity in Ontario could reduce operational costs while positioning themselves in one of North America’s most stable and strategic manufacturing hubs.

For more information on how to access the tax credit and explore investment opportunities in the province, Italian companies may contact the Ontario Ministry of Economic Development directly:

• Colin Blachar, Minister’s Office – [email protected]

• Scott Blodgett, Communications Branch – [email protected]