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Ontario Innovation Tax Credit (OITC)
Refundable tax credit for R&D in Ontario
Last Update: March 6, 2026
Funding available
Up to 8% of project cost
Timeline
- Open continuously
Location
Ontario, Canada
Overview
A refundable tax credit is available for qualifying corporations carrying out scientific research and experimental development in Ontario. The credit rate is 8% for tax years starting after May 31, 2016, and 10% for tax years ending before June 1, 2016.
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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
Activities funded
- Scientific research carried on in Ontario.
- Experimental development carried on in Ontario.
Documents Needed
- Form T661, Scientific Research and Experimental Development Expenditures Claim
- Schedule 31, Investment Tax Credit – Corporations
- Schedule 566, Ontario Innovation Tax Credit
- T2 Corporation Income Tax Return
Eligibility
Who is eligible?
- Corporations with a permanent establishment in Ontario
- Corporations carrying on scientific research and experimental development in Ontario
Who is not eligible
- Corporations exempt from corporation income tax.
Eligible expenses
- Qualified scientific research and experimental development expenditures incurred in Ontario.
- Current expenditures related to SR&ED.
- Capital expenditures made before 2014, where applicable.
Ineligible Costs and Activities
- Capital expenditures incurred after December 31, 2013.
- Expenditures reduced by government assistance, non-government assistance, or contract payments, unless otherwise allowed.
Eligible geographic areas
- Ontario
Processing and Agreement
- The Canada Revenue Agency administers the credit on behalf of Ontario.
- The claim is filed with the corporation’s T2 income tax return.
- Associated corporations must share the annual expenditure limit.
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
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)?
A refundable tax credit is available for qualifying corporations carrying out scientific research and experimental development in Ontario. The credit rate is 8% for tax years starting after May 31, 2016, and 10% for tax years ending before June 1, 2016.
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:
Permanent establishment in Ontario
R&D carried on in Ontario
Eligible for federal investment tax credit
What expenses are eligible under Ontario Innovation Tax Credit (OITC)?
Scientific research carried on in Ontario.
Experimental development carried on in Ontario.
Who can I contact for more information about the Ontario Innovation Tax Credit (OITC)?
You can contact Ontario Ministry of Finance.
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