83.1 (1) This section applies to a corporation for a taxation year if the corporation’s Ontario manufacturing labour cost for the taxation year is more than 20 per cent of its total Ontario labour cost for the year.  2008, c. 7, Sched. S, s. 21. Credit equal to the amount of tax (2) If the corporation’s Ontario manufacturing labour cost for the year is at least 50 per cent of its total Ontario labour cost for the year, its capital tax credit for manufacturers for the year is the total amount of tax that would, but for this section, be payable by the corporation under this Division for the year.  2008, c. 7, Sched. S, s. 21. Deduction from tax (3) If the corporation’s Ontario manufacturing labour cost for the year is less than 50 per cent but more than 20 per cent of its total Ontario labour cost for the year, its capital tax credit for manufacturers for the year is calculated using the formula, A × ((B – 0.2)/0.3) in which, “A” is the amount of tax that would, but for this section, be payable by the corporation under this Division for the year, and “B” is the percentage that its Ontario manufacturing labour cost for the year is of its total Ontario labour cost for the year, expressed in decimals. 2008, c. 7, Sched. S, s. 21. Ontario manufacturing labour cost (4) For the purposes of this section, a corporation’s Ontario manufacturing labour cost for a taxation year is the amount that would be its cost of manufacturing and processing labour for the year under Part LII (Canadian Manufacturing and Processing Profits) of the Federal regulations if, (a) the activities described in paragraphs (a), (b), (e), (f), (g) and (l) of the definition of “manufacturing or processing” in subsection 125.1 (3) of the Federal Act were included in determining what constituted qualified activities under Part LII of those regulations; (b) references in Part LII of those regulations to qualified activities carried out in Canada were read instead as references to qualified activities carried out in Ontario; (c) section 5203 of those regulations did not apply; and (d) paragraph (f) of the definition of “cost of labour” in section 5204 of those regulations did not apply.  2008, c. 7, Sched. S, s. 21. Total Ontario labour cost (5) For the purposes of this section, a corporation’s total Ontario labour cost for a taxation year is the amount that would be its cost of labour for the year under Part LII (Canadian Manufacturing and Processing Profits) of the Federal regulations if, (a) the only salaries and wages taken into account for the purposes of paragraphs (a) and (b) of the definitions of “cost of labour” in sections 5202 and 5204 of those regulations and for the purposes of paragraph (a) of the definitions of “cost of manufacturing and processing labour” in those sections were salaries and wages paid or payable to employees of permanent establishments situated in Ontario; (b) the reference in paragraph (d) of the definition of “cost of labour” in section 5202 of those regulations to an active business carried on outside Canada were read instead as a reference to an active business carried on outside Ontario; and (c) the reference in paragraph (e) of the definition of “cost of labour” in section 5204 of those regulations to an active business carried on outside Canada were read instead as a reference to an active business carried on outside Ontario.  2008, c. 7, Sched. S, s. 21. Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 21 - 01/01/2008 Part IV   Refundable Tax Credits Division A — General