Ontario Research and Development Tax Credit

Qualifying corporations can claim a non-refundable tax credit on eligible scientific research and experimental development expenditures performed in Ontario to reduce their Ontario corporate income tax payable. For taxation years that commence after May 31, 2016, the tax credit rate is 3.5 per cent. The tax credit rate is prorated for taxation years straddling June 1, 2016. For taxation years that end before June 1, 2016, the tax credit rate is 4.5 per cent.

Grant Deadline

Deadline not available

Funding Amount

35% of expense _{For taxation years that commence after May 31, 2016, the tax credit rate is 3.5%}

Type of Grant

Tax Credit

Sectors

Researcher, research and discovery

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of Canada

Keywords

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

An eligible expenditure:

• is incurred for scientific research and experimental development carried on in Ontario
• qualifies under section 127 of the federal Income Tax Act (Canada), and
• is attributable to a permanent establishment in Ontario.

Eligible expenditures are reduced by government assistance, non-government assistance and contract payments, but not the Ontario Research and Development Tax Credit or federal Scientific Research and Experimental Development Investment Tax Credit. However, the Ontario Innovation Tax Credit is one form of government assistance that reduces eligible expenditures for the tax credit.

Under certain conditions, corporations dealing at non‑arm's length may file an agreement and transfer eligible expenditures.

Grant Application website

https://www.ontario.ca/page/ontario-research-and-development-tax-credit

Contact

Canada Revenue Agency with your questions at 1 800 959‑5525 or 1 800 665‑0354 for teletypewriter (TTY).