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Ontario Innovation Tax Credit (OITC) - Ontario - Canada
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Ontario Innovation Tax Credit (OITC)

Refundable tax credit for R&D in Ontario
Ontario Ministry of Finance (MOF)
Government of Ontario (ON)
Canada Revenue Agency (CRA)
Last Update: March 6, 2026
Funding available
No Condition
Timeline
  • Open continuously
Location
Ontario, Canada

Overview

Get a refundable tax credit of 8% for innovative scientific research and experimental development expenditures.

/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Conduct research and development activities
Eligible Funding
  • Up to 8% of project cost
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • Professional, scientific and technical services
Location
  • Ontario
Legal structures
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Startups

Next steps

1
Determine your project
2
Validate your eligibility

Eligibility

Who is eligible?

Corporations with a permanent establishment in Ontario that engage in scientific research and experimental development can apply for the Ontario Innovation Tax Credit. These corporations must not be exempt from corporation income tax and should be eligible to claim the federal investment tax credit under section 127 of the federal Income Tax Act (Canada). They should also file a scientific research and experimental development expenditures claim using the federal form T661 for the tax year.

Eligible expenses

The Ontario Innovation Tax Credit supports projects focusing on scientific research and experimental development in Ontario. Eligible activities include those directly engaged in advancing scientific research and the implementation of experimental development processes.

  • Conducting scientific research in Ontario related to the development of new products, processes, or technologies.
  • Undertaking experimental development projects aimed at improving existing products or processes within Ontario.

Eligible geographic areas

This grant is available to corporations with a permanent establishment in Ontario. Eligibility is aligned with the regional focus of the grant, which aims to support innovation within the province.

  • Corporations with a permanent establishment in Ontario.

Additional information

Here are additional relevant details for the Ontario Innovation Tax Credit:

  • The Ontario Ministry of Finance requires detailed documentation of eligible activities and expenditures in case of an audit.
  • The refundable nature of the tax credit allows for a refund even if there is no tax payable, providing cash flow benefits to qualifying corporations.
  • The tax credit can be carried back three years or carried forward 20 years, allowing flexibility in financial planning for corporations.
  • Corporations should maintain clear records of any government or non-government assistance to accurately adjust qualified expenditures.

Documents and links

Ontario Innovation Tax Credit (OITC)

Frequently Asked Questions about the Ontario Innovation Tax Credit (OITC) Program

Here are answers to the most common questions about the Ontario Innovation Tax Credit (OITC). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Ontario Innovation Tax Credit (OITC)?

Get a refundable tax credit of 8% for innovative scientific research and experimental development expenditures.

How much funding can be received?

Ontario Innovation Tax Credit (OITC) Funds up to 8% of admissible expenses.

Who is eligible for the Ontario Innovation Tax Credit (OITC) program?

To be eligible for the Ontario Innovation Tax Credit (OITC) program, you must: The corporation must have a permanent establishment in Ontario. The corporation must carry out scientific research and experimental development in Ontario during the year. The corporation must be eligible to claim the federal investment tax credit under section 127 of the federal Income Tax Act (Canada).

Who can I contact for more information about the Ontario Innovation Tax Credit (OITC)?

You can contact Ontario Ministry of Finance (MOF).

Where is the Ontario Innovation Tax Credit (OITC) available?

The Ontario Innovation Tax Credit (OITC) program is available the province of Ontario.

Is the Ontario Innovation Tax Credit (OITC) a grant, loan, or tax credit?

Ontario Innovation Tax Credit (OITC) is a Tax Credits

Who are the financial supporters of the Ontario Innovation Tax Credit (OITC)?

Ontario Innovation Tax Credit (OITC) is funded by Ontario Ministry of Finance (MOF), Government of Ontario (ON), Canada Revenue Agency (CRA)

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