Ontario’s 2025 Fall Economic Statement: Essential Insights for Business Leaders

The Ontario government delivered its Fall Economic Statement on November 6, 2025. As an accounting and advisory partner to privately-held businesses, Bateman MacKay is focused on how these developments translate into opportunities and planning imperatives for our clients. The following highlights four areas that warrant attention.

Enhanced Ontario Made Manufacturing Investment Tax Credit (OMMITC)

What’s new

The OMMITC was first introduced to encourage manufacturing and processing investment in Ontario. Under the 2025 Fall Economic Statement, the government confirmed previously announced enhancements along with expanding timing of qualifying expenditures. The previously announced enhancements include:

• The refundable tax-credit rate for Canadian-controlled private corporations (CCPCs) will increase from 10% to 15%.
• Eligibility will expand to include certain non-CCPCs (non-Canadian-controlled corporations) on a non-refundable basis, also at 15%.
• The eligible period for the enhanced credit is on or after May 15, 2025, and before January 1, 2030, for qualifying expenditures.

The expanding timing includes:

• Flexibility for machinery and processing equipment (M&E) expenditures: the proposed amendment would allow expenditures incurred in the taxation year immediately preceding the year the asset becomes available for use to qualify, addressing timing issues between purchase and use. This change will be retroactive to eligible expenditures incurred on or after March 23, 2023.

Next Steps for Business Owners

1. Review upcoming capital investment plans for 2025–26
2. Determine if any previous purchases since March 23, 2023 are now retroactively eligible
3. Confirm asset classifications correctly for CCA purposes
4. Assess whether your corporation’s CCPC or non-CCPC status affects the value of the refundable or non-refundable credit, and coordinating budgets, tax-return timing and asset-use plans.
5. Monitor legislative updates as the measures remain proposed and confer with the experts at Bateman MacKay to ensure your strategy is optimized.

Measures Responding to U.S. Tariffs and Economic Uncertainty

The Fall Economic Statement emphasizes that Ontario remains exposed to trade disruptions, especially tariffs from the United States, given the province’s strong export and integrated supply-chain profile. Key support measures include:

• The Protect Ontario Financing Program: a $4 billion continuation of support for businesses in sectors directly affected by higher U.S. tariff rates in steel, aluminum, copper, and auto sectors.
• The Ontario Together Trade Fund: funding to help small- and medium-sized businesses adapt their production, explore new markets, and expand interprovincial trade. An additional $100 million announced in the Statement (bringing total to $150 million over three years).
• The creation of special economic zones to streamline approvals for strategically important projects.

Next Steps for Business Owners

1. Review U.S. market reliance, exploring diversification opportunities,
2. Evaluate access to trade and financing programs,
3. Integrate the manufacturing investment credit into broader market strategy and stress-testing business plans against prolonged volatility
4. Work with the experts at Bateman MacKay ensures these decisions are grounded in forward-looking, practical guidance.

Online Beneficial Ownership Registry

The Statement proposes that Ontario will implement an online beneficial-ownership registry for privately held business corporations in 2027. Currently, privately held corporations are required to collect and maintain information about individuals with significant control but must disclose it only upon request by authorities. The proposed changes would require filing of beneficial ownership information via an online registry and provide access to law enforcement, tax authorities and regulatory bodies.

HST Relief for First-Time Home Buyers

The Statement proposes that Ontarians who are first-time home buyers of new homes could enjoy a rebate of the full 8 % provincial portion of the HST on qualifying new homes valued at up to $1 million (with a phased reduction between $1 million and $1.5 million).
This measure is contingent on federal legislation in addition to the home purchase agreement must be entered on or after May 27, 2025. Finally, qualifying homes must be substantially completed by 2036.

Conclusion

The 2025 Fall Economic Statement demonstrates that that Ontario is navigating a complex economic environment, yet is taking deliberate steps to support business investment and competitiveness. At Bateman MacKay LLP, we understand that tax, accounting and advisory services are strategic tools that drive growth, protect profits and improve operational efficiency. If you’d like to discuss how your business or your clients’ businesses can position themselves to benefit from these measures, or how they impact exit planning, transition readiness or capital-investment strategy, we’d be pleased to work with you.

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