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

Plain-language summary · AI-assisted · not legal advice

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