Principal Issues: 1. Whether the full amount of the OMMITC can be claimed for acquisitions of eligible property after March 23, 2023, but before the qualifying corporation's year end.
2. Whether the OMMITC is government assistance which reduces the capital cost of the eligible property acquired for CCA purposes.
3. Whether a qualifying corporation can claim both the OMMITC and the Regional Opportunities Investment Tax Credit ("ROITC") in respect of the same property.
4. Whether a qualifying corporation can claim the OMMITC in respect of property that is being leased to a different taxpayer who is using the property for manufacturing or processing.
Position: 1. Question of fact, but likely yes.
2. Yes.
3. Question of fact, but likely yes.
4. Question of fact, but likely yes.
Reasons: 1. The OMMITC claim is calculated based on a qualifying corporation's eligible expenditures in the taxation year in respect of eligible property. Where a qualifying corporation has an eligible expenditure for the purpose of the OMMITC, the full claim can be made in the taxation year. Prorating the OMMITC is not necessary unless a claim is made in a short taxation year.
2. The OMMITC would generally be considered assistance from a government and the capital cost of such property would be reduced pursuant to subsection 13(7.1) of the Income Tax Act.
3. Where the conditions set out in the definition of "eligible property" in both subsection 97.1(14) and 97.1(17) of the Ontario Taxation Act are met, it is possible that a qualifying corporation could claim both the ROITC and OMMITC in respect of the acquisition of a particular building.
4. Clause 97.2(17)(3)(ii)(B) of the eligible property definition in the Ontario Taxation Act specifically includes property 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.
