97.2 (1) A corporation that is a qualifying corporation and that complies with the requirements of this section may claim an amount for a taxation year in respect of and not exceeding the corporation’s Ontario made manufacturing investment tax credit for the year. 2023, c. 8, Sched. 9, s. 7. Amount of tax credit (2) The amount of a qualifying corporation’s Ontario made manufacturing investment tax credit for a taxation year is the amount equal to 10 per cent of the amount calculated using the formula, A/365 × B in which, “A” is the number of days in the taxation year, and “B” is the lesser of, (a) the sum of the qualifying corporation’s eligible expenditures in the taxation year, and (b) $20,000,000, if the corporation is not associated with any qualifying corporation in the taxation year, or the amount determined under subsections (6) and (11), if the corporation is associated with any other qualifying corporation in the taxation year. 2023, c. 8, Sched. 9, s. 7. Qualifying corporation (3) A corporation is a qualifying corporation for a taxation year for the purposes of this section if, (a) it is a Canadian-controlled private corporation throughout the year; (b) it is not exempt from tax for the year under Part III; and (c) it carries on business in Ontario in the year through a permanent establishment in Ontario. 2023, c. 8, Sched. 9, s. 7. Eligible expenditure (4) An expenditure is an eligible expenditure of the qualifying corporation for a taxation year for the purposes of this section if, (a) the expenditure is incurred by the qualifying corporation in respect of the acquisition of eligible property, (b) the expenditure is incurred, (i) in the taxation year or a previous taxation year, if the expenditure is in respect of eligible property that satisfies the criteria set out in subparagraph 1 i of the definition of “eligible property” in subsection (17), or (ii) in the taxation year and on or after March 23, 2023, if the expenditure is in respect of eligible property that satisfies any of the criteria set out in subparagraphs 1 ii to v of the definition of “eligible property” in subsection (17). (c) the expenditure is part of the capital cost of the property to the qualifying corporation at the end of the taxation year; (d) the expenditure is not in respect of eligible property for which a credit under this section has been claimed by the qualifying corporation in a previous year or by a corporation associated with the qualifying corporation in any year. 2023, c. 8, Sched. 9, s. 7. Expenditure under a contract (5) If a corporation incurs an expenditure in respect of eligible property under a contract with a person or partnership with which the corporation does not deal at arm’s length at the time the expenditure was incurred or at the time the contract was entered into, the expenditure shall not be included in the corporation’s eligible expenditures in respect of the eligible property. 2023, c. 8, Sched. 9, s. 7. Associated corporations (6) Subject to subsection (11), if a qualifying corporation is associated in the taxation year with one or more other qualifying corporations, the corporation’s amount for the purposes of clause (b) of the definition of “B” in subsection (2) is the amount designated to the corporation under subsection (7). 2023, c. 8, Sched. 9, s. 7. Same, agreement re designation (7) For a calendar year, a qualifying corporation that is associated with one or more other qualifying corporations in a taxation year ending in that calendar year may enter into an agreement with all those corporations designating the amount for the purposes of subsection (6) for each taxation year ending in that calendar year. 2023, c. 8, Sched. 9, s. 7. Same, total amount designated (8) For the purposes of subsection (7), the maximum amount that may be designated by a group of associated corporations is $20,000,000. 2023, c. 8, Sched. 9, s. 7. Same, more than one taxation year (9) For the purposes of subsection (7), if a qualifying corporation (the “first corporation”) has more than one taxation year ending in the same calendar year and it is associated in two or more of those taxation years with another qualifying corporation that has a taxation year ending in the same calendar year, the following rules apply: 1. Except as may be provided otherwise by the regulations made by the Minister of Finance, the amount, if any, designated to the first corporation for the first taxation year ending in the calendar year shall be the same as the amount designated to the first corporation for any other taxation year ending in the calendar year. 2. Except as may be provided otherwise by the regulations made by the Minister of Finance, for the purposes of determining the maximum amount that may be designated to a group of associated corporations under subsection (7), only the amount designated to the first corporation in the first taxation year ending in the calendar year shall be included. 3. Such other rules as may be prescribed by the Minister of Finance. 2023, c. 8, Sched. 9, s. 7. Same, agreement must be filed with Ontario Minister (10) The agreement referred to in subsection (7) must be filed with the Ontario Minister. 2023, c. 8, Sched. 9, s. 7. Same, failure to enter agreement, etc. (11) The amount for the purposes of clause (b) of the definition of “B” in subsection (2) for a qualifying corporation that is associated with any other qualifying corporations in a taxation year is nil if, (a) the corporation fails to enter into an agreement referred to in subsection (7); (b) the corporation fails to file the agreement with the Ontario Minister under subsection (10); or (c) the agreement does not comply with subsection (8) or (9). 2023, c. 8, Sched. 9, s. 7. Corporations deemed to be associated (12) If the Ontario Minister reasonably believes that one of the reasons for the separate existence of two or more corporations in a taxation year is to entitle a corporation to the Ontario made manufacturing investment tax credit or to increase the tax credit for a taxation year of any of the corporations, the corporations are deemed to be associated with each another in the taxation year for the purposes of this section. 2023, c. 8, Sched. 9, s. 7. Amalgamation (13) Despite any other provision of this section, a qualifying corporation formed as a result of the amalgamation of two or more predecessor corporations shall not claim a credit under this section for any expenditure incurred in respect of eligible property by a predecessor corporation that was not a qualifying corporation at the time the expenditure was incurred. 2023, c. 8, Sched. 9, s. 7. Available for use (14) For the purposes of this section, a property is considered to have become available for use at the time the property is considered to have become available for use under subsection 13 (26) of the Federal Act. 2023, c. 8, Sched. 9, s. 7. Review (15) The Minister of Finance shall conduct a review of the effectiveness of the Ontario made manufacturing investment tax credit not later than the third anniversary of the day the Building a Strong Ontario Act (Budget Measures), 2023 received Royal Assent, and not later than every third anniversary thereafter. 2023, c. 8, Sched. 9, s. 7. Interpretation, capital cost (16) For the purposes of this section, capital cost is determined under the Federal Act, except that a credit claimed under this section or section 97.1 that would otherwise be government assistance for the purposes of determining capital cost under the Federal Act shall be deemed not to be government assistance and shall not reduce the capital cost. 2023, c. 8, Sched. 9, s. 7. Definitions (17) In this section, “eligible property” means property that satisfies all of the following criteria: 1. The property is capital property of the qualifying corporation for the taxation year, and is, i. a building, or part of a building, included in Class 1 of Schedule II to the Federal regulations to which paragraph 1100 (1) (a.1) of the Federal regulations applies as a result of an election made under subsection 1101 (5b.1) of that regulation, ii. property acquired on or after March 23, 2023 and before 2026 that is included in Class 53 of Schedule II to the Federal regulations, iii. property acquired after 2025 that is included in paragraph (a) of Class 43 of Schedule II of the Federal regulations, iv. property that is prescribed by the Minister of Finance for the purposes of this paragraph, or v. property that meets the conditions prescribed by the Minister of Finance. 2. The property is considered to have become available for use by the qualifying corporation in the taxation year and on or after March 23, 2023. 3. The property is, i. a building, or part of a building, located in Ontario, or ii. property, other than a building or part of a building, that is, A. to be used by the qualifying corporation in Ontario primarily in the manufacturing or processing of goods for sale or lease, or B. to be leased, in the ordinary course of carrying on a business in Ontario of the qualifying corporation, to a lessee who can reasonably be expected to use the property in Ontario primarily in the manufacturing or processing by the lessee of goods for sale or lease. 4. The property is not excluded property; (“bien admissible”) “excluded property” means, (a) property that was owned, at any time, by a person or partnership with which the qualifying corporation did not deal at arm’s length at the time the property was acquired, (b) property that the qualifying corporation or a corporation associated with the qualifying corporation held a leasehold interest in at any time before the acquisition of the property, (c) property that was acquired from a person or partnership that has a right or option to acquire or lease all or part of the property at any time, (d) property in respect of which, at the time it was acquired, the qualifying corporation granted any other person or partnership a right or option to acquire, (e) property included in Class 1 of Schedule II to the Federal regulations as a result of an election made under subsection 1103 (1) of those regulations, (f) property that is leased to a lessee that is exempt from tax under section 149 of the Federal Act, (g) property that is prescribed by the Minister of Finance for the purposes of this definition, or (h) property that meets the conditions prescribed by the Minister of Finance; (“bien exclu”) “permanent establishment” has the meaning assigned by subsection 400 (2) of the Federal regulations as if, (a) the reference to “an office, a branch, a mine, an oil well, a farm, a timberland, a factory, a workshop or a warehouse” in the portion before paragraph (a) of the definition were read as “an office, a factory or a workshop”, and (b) the definition were read without reference to paragraphs (a), (b), (c), (d) and (e.1). (“établissement stable’”) 2023, c. 8, Sched. 9, s. 7. Section Amendments with date in force (d/m/y) 2023, c. 8, Sched. 9, s. 7 - 18 /05/2023 Division D — Individuals Subdivision a — Interpretation Interpretation