Small beer manufacturers' tax credit rates updated and new transition-year formula added

Plain-language summary · AI-assisted

The regulation has been updated in two main ways. First, the per-litre credit rate for non-draft beer in certain periods has been adjusted by a fraction of a cent (from $0.6987 to $0.6986 for sales up to March 1, 2026). Second, a brand-new formula (subsection 4.1.1) has been added specifically for the sales year running from March 2, 2026 to February 28, 2027, which splits that year into two rate periods: sales on or before March 31, 2026 use the existing rates, while sales from April 1, 2026 onward use new higher rates of $0.72 per litre for non-draft beer and $0.54 per litre for draft beer. From March 1, 2027 onward, the ongoing formula (subsection 4.2) is also updated to reflect those same higher rates of $0.72 and $0.54 per litre. Small beer manufacturers should review which formula and rate period applies to their current sales year and recalculate their expected tax credit amounts accordingly.

Who this affects
small beer manufacturers in Ontario · qualifying corporations under the small beer manufacturers' tax credit · craft brewers selling beer in Ontario