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Ontario Research and Development Tax Credit (ORDTC)
Non-refundable tax credit for R&D in Ontario
Last Update: March 4, 2026
Funding available
Varies by project
Timeline
- Open continuously
Location
Ontario, Canada
Overview
Reduce your corporate income tax with a credit of 3.5% for scientific research and experimental development expenditures in Ontario.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Conduct research and development activities
- Reduce environmental footprint
Eligible Funding
- Varies by project
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
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Conducting scientific research projects in Ontario.
- Developing experimental innovations or new technologies through research initiatives.
Eligibility
Who is eligible?
- Corporations with a permanent establishment in Ontario
- Corporations conducting scientific research and experimental development in Ontario
Who is not eligible
- Corporations that are exempt from corporation income tax.
Eligible expenses
- Expenditures incurred for scientific research and experimental development activities carried out in Ontario.
Eligible geographic areas
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.
Additional information
- Any unused portion of the tax credit may be carried back three years or carried forward twenty years.
- Recapture rules apply if property previously claimed is later disposed of or converted to commercial use.
- The Canada Revenue Agency administers this credit on behalf of Ontario through the federal tax system.
- The tax credit rate is prorated for taxation years that straddle key rate change dates.
Documents and links
Frequently Asked Questions about the Ontario Research and Development Tax Credit (ORDTC) Program
Here are answers to the most common questions about the Ontario Research and Development Tax Credit (ORDTC). 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 Research and Development Tax Credit (ORDTC)?
Reduce your corporate income tax with a credit of 3.5% for scientific research and experimental development expenditures in Ontario.
Who is eligible for the Ontario Research and Development Tax Credit (ORDTC) program?
To be eligible for the Ontario Research and Development Tax Credit (ORDTC) program, you must:
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).
What expenses are eligible under Ontario Research and Development Tax Credit (ORDTC)?
Conducting scientific research projects in Ontario.
Developing experimental innovations or new technologies through research initiatives.
Who can I contact for more information about the Ontario Research and Development Tax Credit (ORDTC)?
You can contact Ontario Ministry of Finance (MOF).
Where is the Ontario Research and Development Tax Credit (ORDTC) available?
The Ontario Research and Development Tax Credit (ORDTC) program is available the province of Ontario.
Is the Ontario Research and Development Tax Credit (ORDTC) a grant, loan, or tax credit?
Ontario Research and Development Tax Credit (ORDTC) is a Tax Credits
Who are the financial supporters of the Ontario Research and Development Tax Credit (ORDTC)?
Ontario Research and Development Tax Credit (ORDTC) is funded by Ontario Ministry of Finance (MOF), Government of Ontario (ON)