The Ontario government has presented its budget for 2025, emphasizing investments to safeguard Ontario workers amidst U.S. tariffs. A significant focus is on supporting businesses through tax credits and relief funds. The budget projects a deficit of $14.6 billion this year.
A $5-billion fund will provide immediate relief to sectors affected by tariff-related disruptions. This fund acts as an "emergency backstop" for Ontario businesses that have exhausted other funding options. The Ontario Made Manufacturing Investment Tax Credit rate is set to increase from 10 per cent to 15 per cent.
Eligibility for this non-refundable tax credit will expand to include non-Canadian-controlled private corporations and publicly traded corporations. The budget anticipates these changes will lower business costs by $1.3 billion over three years. Other initiatives include investments in interprovincial trade, critical mineral processing, and grants for communities impacted by trade disruptions.
The budget also includes a new refundable tax credit supporting 25% of fertility treatment expenses, up to $5,000 annually. The Liquor Control Board of Ontario's wholesale discount rate will increase from 10% to 15% for eligible businesses until the end of the year. An Ontario Grape Support Program will provide up to $35 million annually for eligible wineries until 2029-30.