SMALL BEER MANUFACTURERS' TAX CREDIT

Application 1. This Regulation applies for the purposes of Part V.5 of the Act. O. Reg. 280/11, s. 1. Date of first monthly instalment of tax credit for a sales year 2. The date prescribed for a sales year for the purposes of subsection 104.17 (5) of the Act is April 30. O. Reg. 280/11, s. 2. Related corporations — modifications to determination of credit 3. (1) This section applies to a qualifying corporation for a sales year if, at any time in the sales year, the qualifying corporation, (a) is related to another corporation that makes beer and is an affiliate of that other corporation; or (b) is deemed to be related to another corporation under subsection 104.16 (5) of the Act that makes beer. O. Reg. 711/21, s. 1. (2) Subsections 17 (5) and (6) of the Liquor Tax Act, 1996 apply for the purposes of determining if two or more corporations are affiliates for the purposes of clause (1) (a) of this section. O. Reg. 711/21, s. 1; O. Reg. 167/25, s. 1 (1). (3) For the purposes of this section, a reference to a “related corporation” is a reference to a corporation referred to in clause (1) (a) or (b). O. Reg. 711/21, s. 1. (4) Despite subsection 104.16 (3.1) of the Act, the amount of a qualifying corporation’s small beer manufacturers’ tax credit for a sales year ending on or before March 2, 2025 is determined using the formula: [(A × B) ∕ F + (C × D) ∕ F] × G × H × J × K in which, “A” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year, “B” is $0.4999 per litre, “C” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year, “D” is $0.3649 per litre, “F” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the total number of litres of beer sold in qualifying sales in the sales year, “G” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 4.9 million, “H” is, (a) if not more than 13 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 0.7556, “J” is, (a) if not more than 7.5 million litres of beer is sold in qualifying sales in the sales year, 1, (b) if more than 7.5 million litres but not more than 13 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((F − 7.5 million) ∕ 22.5 million), or (c) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((F − 13 million) ∕ 7 million) “K” is the amount calculated using the formula, [(L × B) + (M × D)]/[A× B) + (C × D)] in which, “L” has the same meaning as “A” in subsection 104.16 (3.1) of the Act, and “M” has the same meaning as “C” in subsection 104.16 (3.1) of the Act. O. Reg. 711/21, s. 1; O. Reg. 167/25, s. 1 (2). (4.1) Despite subsection 104.16 (3.2) of the Act, the amount of a qualifying corporation’s small beer manufacturers’ tax credit for a sales year beginning on March 3, 2025 and ending on March 1, 2026 is determined using the formula: [(L × M) ∕ N + (O × P) ∕ N + (Q × R) ∕ N + (S × T) ∕ N] × U × V × W × X in which, “L” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year on or before July 31, 2025, “M” is $0.4999 per litre, “N” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the total number of litres of beer sold in qualifying sales in the sales year, “O” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year on or before July 31, 2025, “P” is $0.3649 per litre, “Q” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year from August 1, 2025 to March 1, 2026, “R” is $0.6986 per litre, “S” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year from August 1, 2025 to March 1, 2026, “T” is $0.5447 per litre, “U” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 4.9 million, “V” is, (a) if not more than 13 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 0.7556, “W” is, (a) if not more than 7.5 million litres of beer is sold in qualifying sales in the sales year, 1, (b) if more than 7.5 million litres but not more than 13 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((N − 7.5 million) ∕ 22.5 million), or (c) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((N − 13 million) ∕ 7 million), “X” is the amount calculated using the formula, [(Y × M) + (Z × P) + (AA × R) + (BB × T)] ∕ [(L × M) + (O × P) + (Q × R) + (S × T)] in which, “Y” has the same meaning as “K” in subsection 104.16 (3.2) of the Act, “Z” has the same meaning as “N” in subsection 104.16 (3.2) of the Act, “AA” has the same meaning as “P” in subsection 104.16 (3.2) of the Act, and “BB” has the same meaning as “R” in subsection 104.16 (3.2) of the Act. O. Reg. 167/25, s. 1 (3); O. Reg. 201/26, s. 1 (1). (4.1.1) Despite subsection 104.16 (3.3) of the Act, the amount of a qualifying corporation’s small beer manufacturers’ tax credit for a sales year beginning on March 2, 2026 and ending on February 28, 2027 is determined using the formula: [(A × B) ∕ C + (D × E) ∕ C + (F × G) ∕ C + (H × I) ∕ C] × J × K × L × M in which, “A” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year on or before March 31, 2026, “B” is $0.6986 per litre, “C” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the total number of litres of beer sold in qualifying sales in the sales year, “D” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year on or before March 31, 2026, “E” is $0.5447 per litre, “F” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year from April 1, 2026 to February 28, 2027, “G” is $0.72 per litre, “H” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year from April 1, 2026 to February 28, 2027, “I” is $0.54 per litre, “J” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 4.9 million, “K” is, (a) if not more than 13 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 0.7556, “L” is, (a) if not more than 7.5 million litres of beer is sold in qualifying sales in the sales year, 1, (b) if more than 7.5 million litres but not more than 13 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((C − 7.5 million) ∕ 22.5 million), or (c) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((C − 13 million) ∕ 7 million), and “M” is the amount calculated using the formula, [(N × B) + (O × E) + (P × G) + (Q × I)] ∕ [(A × B) + (D × E) + (F × G) + (H × I)] in which, “N” has the same meaning a s “W” in subsection 104.16 (3.3) of the Act, “O” has the same meaning as “Z” in subsection 104.16 (3.3) of the Act, “P” has the same meaning as “BB” in subsection 104.16 (3.3) of the Act, and “Q” has the same meaning as “DD” in subsection 104.16 (3.3) of the Act. O. Reg. 201/26, s. 1 (2). (4.2) Despite subsection 104.16 (3.4) of the Act, the amount of a qualifying corporation’s small beer manufacturers’ tax credit for a sales year beginning on or after March 1, 2027 is determined using the formula: [(A × B) ∕ E + (C × D) ∕ E] × F × G × H × I in which, “A” is the number of litres of beer that is non-draft beer sold in qualifying sales in the sales year, “B” is $0.72 per litre, “C” is the number of litres of beer that is draft beer sold in qualifying sales in the sales year, “D” is $0.54 per litre, “E” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the total number of litres of beer sold in qualifying sales in the sales year, “F” is, (a) if not more than 4.9 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 4.9 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 4.9 million, “G” is, (a) if not more than 13 million litres of beer is sold in qualifying sales in the sales year, 1, or (b) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, 0.7556, “H” is, (a) if not more than 7.5 million litres of beer is sold in qualifying sales in the sales year, 1, (b) if more than 7.5 million litres but not more than 13 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((E − 7.5 million) ∕ 22.5 million), or (c) if more than 13 million litres but not more than 20 million litres of beer is sold in qualifying sales in the sales year, the amount calculated using the formula, 1 − ((E − 13 million) ∕ 7 million) “I” is the amount calculated using the formula, [(J × B) + (K × D)] ∕ [(A × B) + (C × D)] in which, “J” has the same meaning as “A” in subsection 104.16 (3.1) of the Act, and “K” has the same meaning as “C” in subsection 104.16 (3.1) of the Act. O. Reg. 167/25, s. 1 (3); O. Reg. 201/26, s. 1 (3-5). (5) For the purposes of subsections (4), (4.1), (4.1.1) and (4.2), a sale is a qualifying sale in respect of a qualifying corporation if the sale is made in Ontario and the following conditions are satisfied: 1. The beer was made by the qualifying corporation or a related corporation. 2. The sale is made by, i. the qualifying corporation, ii. a related corporation, iii. any person referred to in paragraph 3 of subsection 104.15 (1) of the Act. 3. The sale satisfies the conditions set out in paragraphs 2, 4 and 5 of subsection 104.15 (1) of the Act. O. Reg. 711/21, s. 1; O. Reg. 167/25, s. 1 (4); O. Reg. 201/26, s. 1 (6). (6) In calculating a qualifying corporation’s qualifying sales, no amount may be included or deducted to the extent that the amount has already been included or deducted in calculating qualifying sales in respect of the sales year or a preceding sales year. O. Reg. 711/21, s. 1.