Ontario tax credit for manufacturing and processing

You can claim the Ontario tax credit for manufacturing and processing if the corporation had:

• Ontario taxable income during the tax year; and
• eligible Canadian profits from manufacturing and processing, farming, fishing, logging, mining, the generation of electrical energy for sale, or the production of steam for sale.

You cannot claim this credit for the corporation's income that is subject to the Ontario small business deduction rate (8.5%).

Claiming the credit

To claim the credit, file a completed Schedule 502, Ontario Tax Credit for Manufacturing and Processing, with the return.

For more information, see the schedule and section 33 of the Taxation Act, 2007 (Ontario).

On line 406 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit you are claiming.

Forms and Publications

• Schedule 5, Tax Calculation Supplementary - Corporations
• Schedule 502, Ontario Tax Credit for Manufacturing and Processing

Government partners

• Ontario (Ministry of Revenue)
• Ontario (e-Laws)