Ontario seeks to take new steps to help restore jobs in the manufacturing sector. To attract additional investments to benefit the province's economy, the Canadian government has proposed a new adoption of the Industrial Investment Tax in Ontario to help local manufacturers thrive, innovate, increase competitiveness, and create jobs.

As part of the upcoming 2023 budget, the government will introduce legislation which, if passed, will provide a new 10% refundable income tax credit, up to $2 million annually, for Canadian-controlled private companies investing in buildings, machinery, and equipment for manufacturing or processing in the province of Ontario.

In this context, Doug Ford said: "This new tax credit will give local businesses another reason to invest in industry in Ontario. During this time of global economic uncertainty, our government is working tirelessly to ensure we have all the necessary conditions for the growth of the manufacturing sector in Ontario and job creation."

Similarly, the proposed Industrial Investment Tax Credit in Ontario, if passed, will provide $780 million in tax assistance over the next three years. This new tax credit is just one of many initiatives the government has taken since 2018 to improve Ontario's competitiveness by reducing business costs.

For his part, Peter Bethlenfalvy, Minister of Finance, said: "Our government is revitalizing the manufacturing sector in the province through key investments and creating jobs in communities across the province. This new Industrial Investment Tax Credit in Ontario is part of the province’s plan to build a strong economy."

It is noted that in 2022, Ontario signed more than 150 investment agreements across a wide range of sectors, including automotive, technology, manufacturing, and life sciences. These investments will also help create and sustain thousands of good-paying jobs.

The Building Ontario plan will continue to enhance the province’s competitive advantage, encouraging existing businesses to expand their operations.

The government will also provide more information about its plan to build a strong province and face this period of economic uncertainty in the 2023 budget.