Ontario Research and Development Tax Credit
ON, Canada
Non-refundable tax credit for R&D in Ontario
grant_single|update January 24, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Professional, scientific and technical services
grant_single|grantors
- Government of Ontario
- Ontario Ministry of Finance
grant_single|status
grant_card_status|open
grant_single_labels|preview
Reduce your corporate income tax with a credit of 3.5% for scientific research and experimental development expenditures in Ontario.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 12,250
Developing a new AI system to optimize energy consumption
$ 13,300
Developing a sustainable agriculture technology
$ 17,500
Innovative water purification research initiative
$ 14,000
Creating a biotech lab for cancer research
$ 15,750
Implementing a new healthcare data analysis system
$ 21,000
Launching a renewable energy research center
grant_single_labels|admissibility
A corporation must meet certain criteria to be eligible for the Ontario research and development tax credit.
- The corporation must have a permanent establishment in Ontario.
- The corporation must carry on 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).
- The corporation must not be exempt from corporation income tax.
- The corporation must have filed a scientific research and experimental development expenditures claim on federal form T661 for the tax year.
grant_eligibility_criteria|who_can_apply
Corporations with a permanent establishment in Ontario conducting scientific research and experimental development (SR&ED) in Ontario, which are not exempt from corporation income tax, and are eligible to claim the federal investment tax credit under section 127 of the federal Income Tax Act (Canada) can apply for the Ontario Research and Development Tax Credit.
grant_eligibility_criteria|who_cannot_apply
This grant's eligibility is primarily based on meeting specific criteria rather than explicitly excluding certain industries or company types. However, companies exempt from corporation income tax are restricted from applying.
- Corporations exempt from corporation income tax.
grant_eligibility_criteria|eligible_expenses
Eligible expenditures for the Ontario Research and Development Tax Credit include costs for scientific research and experimental development carried out in Ontario, qualifying under section 127 of the federal Income Tax Act (Canada), and attributable to a permanent establishment in Ontario.
- Costs incurred for scientific research and experimental development in Ontario
- Expenditures that meet the requirements of section 127 of the federal Income Tax Act (Canada)
- Expenditures directly related to a permanent establishment in Ontario
grant_eligibility_criteria|zone
This tax credit is exclusively available to corporations with a permanent establishment in a specific region of Canada. The focus is on businesses conducting qualifying research and development within these geographical boundaries.
- Corporations with a permanent establishment in Ontario, Canada.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The evaluation and selection criteria include:
- Having a permanent establishment in Ontario
- Carrying out scientific research and experimental development in Ontario
- Being eligible to claim the federal investment tax credit under section 127 of the federal Income Tax Act
- Not being exempt from corporation income tax
- Filing a scientific research and experimental development expenditures claim on federal form T661 for the tax year
grant_single_labels|apply
grant_single_labels|otherInfo
Here are additional relevant details regarding the Ontario Research and Development Tax Credit:
- Unused portions of the tax credit can be carried back three years or forward 20 years.
- Recapture rules apply if eligible property included in the claim is disposed of or converted to commercial use.
- The Canada Revenue Agency administers the tax credit on behalf of Ontario.
Apply to this program
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