If your business is planning to invest in buildings or facilities outside Ontario’s largest cities, tax credits can help lower your costs. Ontario offers special tax credits for companies that build, renovate, or expand in certain regions. Understanding Ontario regional and manufacturing tax credits business eligibility ensures you don’t miss out on valuable support and helps you plan your next steps.
One key program is the Regional Opportunities Investment Tax Credit (ROITC). This refundable Ontario corporate income tax credit encourages business growth in regions that need more investment.
Ontario uses tax credits to encourage businesses to invest in new or improved buildings, especially in areas outside major cities. These credits reduce the amount of corporate income tax you need to pay. Some, like the ROITC, are refundable—meaning you can receive a payment even if your business owes little or no tax.
The ROITC is the main regional investment tax credit in Ontario.
What the credit gives you
Who can get the credit? Your business must meet all these rules:
What counts as an eligible investment? Your investment must be used to:
The property must become ready to use on or after March 25, 2020.
Where are the designated regions? Designated regions are generally outside the Greater Toronto Area, Greater Ottawa Area, and Greater Golden Horseshoe. The official list of these regions is published by the Ontario government and may change from time to time.
Manufacturing businesses often spend significant amounts on buildings and upgrades, which means they may qualify for regional tax credits.
You could be eligible if:
However, buying equipment alone does not qualify for the ROITC. The credit applies only to buildings and improvements to structures, not to machines or production equipment.
If you want to see if your project fits, tools like GrantHub’s eligibility matcher can help you filter Ontario tax credits by region, industry, and investment type.
You claim the ROITC when you file your Ontario corporate income tax return for the year in which your property becomes ready to use.
Main steps:
Because this credit is refundable, it can improve your cash flow even if your business did not earn much profit that year.
Assuming all Ontario locations qualify
Only investments in designated regions are eligible. Most large cities are not included.
Including equipment or machinery costs
The ROITC only covers buildings and renovations, not machines or production equipment.
Overlooking the CCPC requirement
Public companies and foreign-controlled businesses are not eligible for this credit.
Claiming before the property is ready for use
The building or renovation must be finished and in use before you can claim the credit.
Q: Is the Regional Opportunities Investment Tax Credit refundable?
Yes. If your credit is larger than your Ontario corporate income tax, the province pays you the difference.
Q: What is the minimum investment required?
You must invest more than $50,000 in eligible property to qualify.
Q: Can startups or small manufacturers apply?
Yes, as long as you are a CCPC with a permanent establishment in Ontario and meet the investment rules.
Q: Are leased buildings eligible?
Usually, you must be buying, building, or renovating the property. Leasing does not count unless you spend money on eligible construction or renovation.
Q: Where can I find the list of designated regions?
The Government of Ontario posts the list on its Ministry of Finance website.
Ontario regional and manufacturing tax credits can make expanding or upgrading your business more affordable. Review the eligibility rules for your location, project type, and timing before you start. For the latest updates and to compare programs, GrantHub tracks active grant and tax credit programs in Ontario and across Canada—helping you quickly see which options match your business plans.
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