Ontario Energy, Green & Manufacturing Credits (2025 Guide)

Ontario businesses can access a powerful suite of provincial and federal credits, grants, and accelerated deductions to support clean technology, energy efficiency, and manufacturing investment. Whether you're a manufacturer, processor, property owner, or green tech innovator, these incentives can dramatically reduce your tax bill, fund energy-saving upgrades, and make Ontario a leader in sustainable business and advanced industry. This in-depth guide covers every major Ontario and stackable federal credit for energy, green, and manufacturing investments—plus application steps, documentation, and expert strategies for maximizing your refund.

  • What’s Covered: Ontario energy property tax credits, green/clean tech grants, manufacturing investment credits, accelerated CCA, and stackable federal incentives
  • Who’s Eligible: Ontario-registered corporations, manufacturers, processors, building/property owners, clean tech companies, and SMEs
  • Quick Links: Directory, Federal Stacking, Examples, FAQ
Ontario factory rooftop solar panels and wind turbines with a modern manufacturing plant

Ontario Energy, Green & Manufacturing Credits Directory

Ontario Energy and Property Tax Credit (OEPTC—Business/Commercial)
Businesses that own or lease qualifying property in Ontario may be eligible for municipal and provincial property tax relief on energy-efficient upgrades, renovations, or new construction.
Eligibility: Ontario commercial/industrial property owners and tenants, especially for investments in energy-efficient upgrades, renewable energy, or LEED/green-certified renovations. See claim details →
  • How to Claim: Businesses claim municipal property tax credits or rebates via local application (city/town), and may claim the OEPTC portion on their ON-BEN schedule if eligible (for certain small business/rental situations).
  • Documentation: Keep all property tax bills, lease agreements, upgrade/renovation receipts, and municipal approval letters.
  • Example: A manufacturing plant in Toronto installs $200,000 in green upgrades and receives a partial property tax rebate for LEED certification, reducing annual property taxes by $5,000 for five years.
Ontario GreenON & Save on Energy Grants/Rebates
Although the GreenON program has ended, Ontario businesses can still access Save on Energy rebates, municipal grants, and federal/provincial stackable incentives for:
  • LED lighting retrofits and upgrades
  • High-efficiency HVAC, heat pumps, and building automation
  • Rooftop solar (PV), wind, and battery storage systems
  • Energy audits and retro-commissioning
Eligibility: Commercial, industrial, and multi-unit building owners and tenants.
Apply via Save on Energy Business or local utility.
  • How to Claim: Apply for pre-approval before starting upgrades. Submit project details, estimates, and business registration. File proof of completion, payment, and project photos for final rebate/grant.
    Many programs stack with federal Clean Technology credits.
  • Documentation: Pre-approval letter, project plans, paid invoices, photos, and municipal/utility inspection reports as required.
  • Example: A warehouse replaces all lighting with LEDs, receives a $9,000 Save on Energy rebate, and reduces future energy use by over 50%.
Ontario Manufacturing and Processing Investment Credits
Ontario manufacturers and processors can claim non-refundable tax credits for eligible capital investments in new/used buildings, machinery, and equipment. These credits are often stackable with municipal property tax rebates and accelerated CCA.
  • Eligible Investments: New or used M&P equipment, automation, robotics, facility expansion, green/clean tech systems.
  • Claim Process: File Ontario Schedule 508 with your T2 return for the ORDTC. Coordinate with local property tax or utility rebates if eligible.
  • Documentation: Invoices, contracts, asset schedules, proof-of-installation, and business registration.
  • Example: An auto parts plant spends $1,000,000 on robotics, claims $35,000 ORDTC (3.5%), plus accelerated CCA (see below).
Accelerated Capital Cost Allowance (CCA)
Ontario businesses can claim enhanced CCA rates for eligible clean energy and manufacturing assets (Class 43.1/43.2, Class 53, etc.), allowing a larger deduction in the year of purchase. Ontario conforms to federal accelerated CCA rules.
  • Eligible Assets: Solar panels, wind turbines, energy storage, HVAC, manufacturing equipment, automation/robotics.
  • How to Claim: Identify the correct CCA class for each asset and deduct the allowed amount on your federal/provincial T2 return. CRA Accelerated CCA.
  • Documentation: Asset purchase invoices, technical specs, installation/commissioning records, and CCA schedules.
  • Example: A food processor installs $300,000 in solar (Class 43.2), deducts 100% in year 1, reducing taxable income and boosting cash flow.
Ontario Green/Manufacturing Grant Programs
Ontario offers periodic application-based grants for green equipment, energy efficiency, and advanced manufacturing projects (e.g., Ontario Advanced Manufacturing and Innovation Competitiveness (AMIC) Stream, Sustainable Development Technology Canada (SDTC) grants).
  • How to Apply: Submit project proposal, business plan, and financials to the relevant ministry or provincial agency. Pre-approval required; funding may be competitive.
  • Tip: Grants may require matching or cost-sharing. Most must be applied for before incurring expenses.
  • Documentation: Project plan, financials, proof of eligible costs, grant approval letter, and completion report.
  • Example: A plastics manufacturer receives a $75,000 AMIC grant to install new energy-efficient injection molding machines, reducing project payback time by 30%.
Municipal Property Tax Rebates for Green/LEED Construction
Many Ontario cities (e.g., Toronto, Ottawa, Hamilton) offer property tax holidays, phase-ins, or rebates for LEED-certified, green, or energy-efficient commercial/industrial construction or major renovations.
Check with your city/town for eligibility, application process, and annual deadlines.
  • How to Claim: Apply via your local municipal business/property tax office with proof of LEED/green certification and investment. Some programs require pre-registration during permitting.
  • Documentation: Property tax bills, proof of green certification (e.g., LEED, ENERGY STAR), construction invoices.
  • Example: A Toronto warehouse receives a property tax rebate of $15,000/year for five years after achieving LEED Gold status on a major retrofit.

Stacking Ontario Credits with Federal Clean Tech & Manufacturing Incentives

Claim Examples: Maximizing Ontario & Federal Credits

Example 1: Manufacturing Plant Installs Solar & Automation
  • Spends $600,000 on rooftop solar (Class 43.2) + $400,000 on robotics (Class 53)
  • Receives $30,000 Save on Energy rebate for solar; $20,000 for automation
  • Claims 30% federal Clean Tech ITC ($180,000 on solar net of rebate)
  • Claims Ontario ORDTC (3.5%) on robotics ($14,000)
  • Deducts 100% of both investments via accelerated CCA in year 1 ($1,000,000 deduction)
  • Total net after-tax/project cost: $1,000,000 - $30,000 (provincial rebate) - $20,000 (rebate) - $180,000 (federal ITC) - $14,000 (ORDTC) = $756,000 (plus tax savings from CCA deduction)
Example 2: LEED Office Renovation with Municipal Property Tax Rebate
  • Renovation cost: $1.2M for LEED Gold upgrades (HVAC, insulation, energy automation)
  • Receives $100,000 municipal property tax rebate over 5 years
  • Claims Save on Energy rebate: $15,000 for HVAC upgrades
  • Claims accelerated CCA (Class 43.1) on eligible assets
  • Total net cost: $1.2M - $100,000 - $15,000 (plus CCA deductions reduce tax)
Example 3: SME Stacks Provincial & Federal Credits for Clean Tech
  • Small manufacturer buys $150,000 of high-efficiency equipment
  • Receives $10,000 Save on Energy rebate
  • Claims 30% federal ITC ($42,000)
  • Claims accelerated CCA (100%, $150,000 deduction)
  • Claims Ontario property tax rebate: $2,500/year for 4 years
  • Total net cost: $150,000 - $10,000 - $42,000 - $10,000 (property tax) = $88,000 (plus tax savings from CCA)

Frequently Asked Questions: Ontario Energy, Green & Manufacturing Credits

Can I claim both a grant and a tax credit for the same equipment?
Yes, but you must subtract any grant/rebate from your eligible expenditure before calculating the tax credit. You cannot "double-dip" on the same dollar. Always review program stacking rules.
Do small businesses qualify for these credits?
Yes. Most Ontario and federal green/manufacturing credits are open to incorporated and (for grants) sometimes unincorporated businesses. Eligibility varies by program—see details above or check the official program site.
What documentation do I need?
Keep all invoices, proof of payment, equipment specs, installation records, energy audit reports, business registration, and grant approval letters. For CCA, maintain an up-to-date capital asset ledger.
How do I stack Ontario and federal incentives?
Apply for grants/rebates first (pre-approval often required), then claim tax credits on your return, subtracting any grant received. Deduct CCA after adjusting cost for credits/grants. For large projects, consult a specialist to optimize stacking.
Where can I get official forms and help?
Visit the Ontario government, Save on Energy, and CRA sites for forms and guidance. For complex claims, consult a professional tax advisor with experience in green/industrial credits.

Related Ontario & Canada-Wide Business Credit Guides

See also: GST/HST Rebates | Climate Action Incentives