Ontario Business Research Institute Tax Credit (OBRITC)

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 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.

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

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.