Ontario Business Research Institute Tax Credit (OBRITC)
Last Update: April 27, 2025
ON, Canada
Business tax credit for scientific research in Ontario
Ontario Business Research Institute Tax Credit (OBRITC) at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : November 14, 2019
Financing Type
Tax Credits
Eligible Industries
- Professional, scientific and technical services
- Educational services
- Health care and social assistance
Grant Providers
- Ontario Ministry of Finance
- Government of Ontario
Status
Open
Overview of the Ontario Business Research Institute Tax Credit (OBRITC) program
Claim a 20% refundable tax credit for qualified expenditures on scientific research and experimental development work performed in Ontario under contract with eligible research institutes. Qualified expenditures are capped at $20 million annually. The max
Eligible projects & activities
The Ontario Business Research Institute Tax Credit supports projects that involve scientific research and experimental development work performed in partnership with eligible research institutes located in Ontario. The funded activities must be conducted under a contractual agreement that allows the corporation to utilize the results for its business operations in Canada.
- Scientific research projects conducted by Ontario universities or community colleges.
- Experimental development work carried out in collaboration with hospital research institutes.
- Research initiatives with Ontario Centres of Excellence or federal Networks of Centres of Excellence.
- Collaborative projects with non-profit organizations designated as eligible research institutes.
Examples of admissible projects:
$ 200,000
Researching sustainable packaging solutions with McMaster University
$ 500,000
Creating a clean energy solution for residential buildings with University of Alberta
$ 400,000
Developing a new remote healthcare monitoring system with Ottawa Hospital Research Institute
$ 300,000
Developing an AI-driven financial analysis system for cooperative use
$ 360,000
Creating a smart urban farming system in partnership with Ryerson University
$ 240,000
Developing a biodegradable textile with University of Waterloo for fashion industry
Eligibility criteria of the Ontario Business Research Institute Tax Credit (OBRITC) program
Eligibility for corporations to claim this tax credit is based on specific business criteria and contractual relationships.
- The corporation must carry on business in the tax year through a permanent establishment in Ontario.
- The corporation must not be exempt from corporation income tax.
- The corporation must have entered into an eligible contract with an eligible research institute.
- The corporation must not be connected to the eligible research institute as defined by the criteria of share ownership, partnership, or related rules.
Who is eligible?
Eligible corporations for the Ontario business research institute tax credit include those that carry on business in Ontario through a permanent establishment, are subject to corporation income tax, have eligible contracts with approved research institutes, and are not connected to these institutes as per specific criteria.
Eligible expenses
This tax credit is available for scientific research and experimental development projects performed under contract by eligible research institutes in Ontario. The activities supported are aimed at stimulating innovation and research within corporations operating in the region.
- Scientific research conducted by eligible Ontario universities or community colleges on behalf of a corporation.
- Experimental development projects carried out by Ontario hospital research institutes.
- Collaborative research facilitated by the Ontario Centres of Excellence or federal Network of Centres of Excellence operating in Ontario.
- Scientific exploration and studies by designated non-profit research organizations in Ontario.
Eligible geographic areas
This tax credit is available to corporations that conduct business through a permanent establishment in Ontario. The eligible geographical area is specific to the province of Ontario, Canada.
- Businesses operating within the province of Ontario.
Eligibility criteria of the Ontario Business Research Institute Tax Credit (OBRITC) program
There are evaluation and selection criteria for this grant.
- The corporation must carry on business in Ontario through a permanent establishment
- The corporation must not be exempt from corporation income tax
- The corporation must enter into an eligible contract with an eligible research institute
- The corporation must not be connected to the eligible research institute
- The eligible research institute must meet the criteria specified
- The contract must meet certain requirements and be entered into after a specified date
- The expenditure must qualify as a qualified expenditure with an eligible research institute
How to apply to the Ontario Business Research Institute Tax Credit (OBRITC) program
1
Review Eligibility Criteria
- Ensure your corporation meets the eligibility requirements, including having a permanent establishment in Ontario and not being connected to the eligible research institute.
- Confirm the scientific research and experimental development is performed in Ontario under a contract with an eligible research institute.
2
Enter into an Eligible Contract
- Negotiate and finalize an eligible contract with an eligible research institute for scientific research and experimental development services.
- Ensure the contract complies with all stipulated conditions such as being entitled to exploit the research results.
3
Prepare Documentation
- Collect all relevant financial documentation related to the qualified expenditures.
- Ensure expenses are only payments in money, not in kind, and also qualify for the federal investment tax credit.
4
Complete Schedules
- Download and complete Schedule 568, Ontario Business-Research Institute Tax Credit.
- For each eligible contract, complete Schedule 569, Ontario Business-Research Institute Tax Credit Contract Information.
5
File T2 Corporation Income Tax Return
- Submit the completed Schedules 568 and 569 along with your T2 Corporation Income Tax Return to the Canada Revenue Agency.
- Ensure timely submission before the tax filing deadline.
6
Confirmation of Claim
- Retain copies of all submitted documents for your records.
- Await confirmation from the Canada Revenue Agency regarding the processing of your tax credit claim.
Additional information
Here are additional relevant details for this tax credit:
- There is a cap on the annual qualified expenditures eligible for the credit, which is set at $20 million, meaning no more than this amount can be claimed in a year.
- The maximum annual refundable tax credit that can be claimed is $4 million.
- While the tax credit is refundable, it applies only to corporations that are not exempt from corporate income tax.
- Eligible contracts for this tax credit must have been entered into after May 6, 1997.
Apply to this program
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