A report titled “Building a Strong Ontario” was released by the Ontario provincia government. In addition to supporting the government’s ongoing goals of attracting new manufacturing jobs to Ontario, investing in critical minerals and infrastructure, and supporting the healthcare workforce, the budget supports total spending of $204.7 billion. “Ontario Investment Office” an Ontario Made Manufacturing Investment Tax Credit, and a voluntary clean energy credit are among the initiatives in the Ontario 2023 Budget. This includes investments in critical minerals, skills, jobs, and clean technology initiatives. In general, the Ontario 2023 Budget emphasizes employment creation, improving highways, public transit, health care, and education, as well as a focus on clean energy and affordable housing. The budget does not include any new tax increases, but some tax credits will be phased out. A deficit of $25.6 million is predicted by the Ontario government for 2023, but asurplus of $200 million is expected next year.
“By planning prudently, and focusing our investments, we have made considerable progress on our path to balance. In fact, we now plan to balance the Budget in 2024–25, three years earlier than expected in the last Budget. Because of our thoughtful, transparent planning, we can do this while still delivering on our Plan to Build to support families, workers, and businesses across Ontario. This is why we are continuing with our responsible, targeted approach that is building an Ontario that the people of this province can be proud of, not only today but in the future”
– The Honourable Peter Bethlenfalvy, Ontario’s Minister of Financial.
Investing in Ontario’s infrastructure
By investing in public infrastructure over the next decade, gridlock will be reduced, communities will be connected, and jobs will be more accessible.
- In order to stimulate economic growth throughout the country, the government will invest $27.9 billion over the next 10 years. Approximately 600 expansions and rehabilitations will be supported by the Ontario Highways Program over the next four years;
- During the next decade, $70.5 billion will be invested in public transportation projects to support the province’s economy, alleviate gridlock, and connect more people with jobs and housing;
- In order to ensure that every community in Ontario has access to high-speed internet by the year 2025, Ontario will have invested $4 billion in internet infrastructure;
- In 2023, the government will provide approximately $400 million for roads, bridges, water, and wastewater projects through the Ontario Community Infrastructure Fund (OCIF).
- Local communities willing to participate in the Urban Mobility Vehicle Pilot Program will be able to explore alternative vehicles as a green and affordable transportation option. Municipal bylaws must be passed to allow the vehicles to be driven on their road.
Health Care Funding in Ontario
While residents recover from COVID-19, the Ontario government is determined to establish a more robust health system. Incentives and grants are available to improve healthcare facilities, train staff, and stabilize communities.
- There will be $48 billion in hospital infrastructure spending over the next 10 years, including $32 billion in capital grants to hospitals to support more than 50 projects and create 3,000 new beds, increasing access to reliable and quality healthcare;
- Over the next three years, the federal government will make an Ontario Healthcare Provincial Funding payment of $4.4 billion from the Canada Health Transfer program, along with other time-limited funding agreements for future shared priorities; and as part of the $569 million annual healthcare budget, nearly $100 million is allocated to home healthcare and $300 million is allocated to support contract rate increase.
Identifying the key drivers of economic growth
A sustainable path forward is being built for both residents and businesses in Ontario. A variety of programs are supporting these building blocks, including funding for minerals, clean energy, and small businesses. Mineral funding for critical areas.
- The Critical Minerals Strategy program will receive an additional $3 million in 2023- 2024 and 2024-2025, helping more companies find mineral deposits and attracting more investors;
- Ontario’s Junior Exploration Program will receive $13 million in 2023-2024 and another $13 million in 2024-2025. $4 million will be allocated to the Critical Minerals Stream;
- With Ontario’s Critical Mineral Exploration Tax Credit, which provides $25 million in additional relief each year, the mining industry provides good jobs for Ontarians.
Programs to found clean energy
- The Independent Electricity System Operator (IESO) has allocated an additional $342 million for energy-efficiency programs. Families and businesses will be able to reduce their energy consumption and save money on their energy bills by investing million more in energy efficiency;
- Clean energy credit registries (CECs) will enhance Ontario’s competitiveness and attract new jobs as environmental and sustainability goals influence corporate decisions. Ontario will become more attractive to businesses by adopting the registry.
- Ratepayers will receive funds generated from the purchase of CECs to help reduce electricity costs and support future clean energy generation.
Ontario Business Grants
- Ontario Business Grants $2 million will be allocated to Futurpreneur Canada, a non-profit offering mentorship programs and loans up to $25,000 to young entrepreneurs;
- He racialized and Indigenous Supports for Entrepreneurs Program (RAISE) will receive $15 million over three years;
- $3 million will be allocated to the Black Youth Action Plan to assist black youth and entrepreneurs;
- With $107 million, new initiatives will promote access to and commercialization of technologies that will fuel innovation, create jobs, and maintain businesses; competitiveness; In order to maintain Ontario’s leadership in the financial industry, the government will invest $3 million over the next three years.
- Greenlands Conservation Partnership will be expanded by $14 million in 2023-24, with matching contributions from the private sector enabling conservation partners to protect and manage private natural areas, such as wetlands, grasslands, and forests, so they can be preserved in the future.
- A total of $9.5 million will be invested over the next three years to improve soil data mapping, soil evaluation and monitoring, and to support key commitments under Ontario’s Agricultural Soil Health and Conservation Strategy.
Manufacturers get new Ontario tax credit
Ontario has announced a 10% refundable credit for manufacturing and processing investments in buildings, machinery, and equipment.
Companies in the growth and scaling stages of their global maturity journey typically cannot take advantage of traditional tax incentives due to capital investment deductions.The refundable nature of this incentive makes it attractive to companies investing in real time that have not yet paid significant federal or provincial taxes. This is what makes this incentive so powerful.
In order to qualify, Canadian Controlled Private Corporations (CCPCs) have to have a permanent establishment in Ontario and purchase capital property classified as CCA Class 1 (buildings) or Class 53 (machinery and equipment) after March 23, 2023, and before 2026. Expenditures after 2025 are covered under CCA class 43(a). Associated groups of qualified corporations with an annual qualifying investment limit of $20 million can receive a maximum refundable tax credit of $2 million. This initiative aims to boost Ontario’s manufacturing industry. This comprehensive Ryan Tax Alert covers this tax update and more from the Ontario 2023 budget.
Tax credits, grants, and loans to help you fund your Ontario business
Get the latest grants, loans, and tax incentives for your industry by Subscribing to our free government funding newsletter. Interested in finding out how to apply for government funding in Ontario? Check out our comprehensive directory of government funding opportunities . To learn about the top government funding programs available across a wide range of industries and business activities, businesses should attend our free government funding webinars.
Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.