Open
Source verified August 10, 2026
Ontario Research and Development Tax Credit (ORDTC)
Ontario tax relief for SR&ED spending
Funding available
Varies by project
Deadline
Open continuously
Location
Ontario, Canada
Overview
Ontario Research and Development Tax Credit provides qualifying corporations with a non-refundable tax credit of 3.5% or 4.5% for scientific research and experimental development expenditures carried on in Ontario. It supports SR&ED activities and qualified expenditures tied to a permanent establishment in Ontario.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Conduct research and development activities
- Reduce environmental footprint
- Conduct research or evaluation activities
Eligible Funding
- Varies by project
Funds Providers
Eligible candidates
Eligible Industries
- All industries
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
- Scientific research and experimental development carried on in Ontario.
Documents Needed
- Completed Schedule 508, Ontario Research and Development Tax Credit
- Completed Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim
- Completed Schedule 31, Investment Tax Credit - Corporations
Official resources
Application form
Eligibility
Who is eligible?
- Corporations.
- Corporations with a permanent establishment in Ontario.
- Corporations that carry on scientific research and experimental development in Ontario during the year.
- Corporations that are eligible to claim the federal investment tax credit under section 127 of the federal Income Tax Act (Canada).
- Corporations that are not exempt from Ontario corporate income tax and none of whose income is exempt income.
Who is not eligible
- Corporations exempt from Ontario corporate income tax.
- Corporations whose income is exempt income.
Eligible expenses
- Expenditures for a permanent establishment in Ontario that are qualified expenditures under section 127 of the federal Income Tax Act for scientific research and experimental development carried on in Ontario.
Eligible geographic areas
- Ontario
Selection 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
How to apply
- Complete and attach Schedule 508 to the T2 Corporation Income Tax Return for the tax year.
- Send completed copies of Form T661 and Schedule 31 within 18 months of the tax year end.
Processing and Agreement
- The Canada Revenue Agency administers the tax credit on behalf of Ontario through the federal income tax system.
- If eligible property is disposed of or converted to commercial use, the recapture must be reported on Schedule 5 for the year of disposition or conversion.
- If the corporation is a member of a partnership, it must report its share of the recapture.
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.
Contacts
Frequently Asked Questions about the Ontario Research and Development Tax Credit (ORDTC) Program
What is the Ontario Research and Development Tax Credit (ORDTC)?
Ontario Research and Development Tax Credit provides qualifying corporations with a non-refundable tax credit of 3.5% or 4.5% for scientific research and experimental development expenditures carried on in Ontario. It supports SR&ED activities and qualified expenditures tied to a permanent establishment 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 SR&ED in Ontario during the year.
The corporation must be eligible for the federal investment tax credit under section 127.
What expenses are eligible under Ontario Research and Development Tax Credit (ORDTC)?
Scientific research and experimental development carried on in Ontario.
Who can I contact for more information about the Ontario Research and Development Tax Credit (ORDTC)?
You can contact Ontario Ministry of Finance or by phone at 1-800-959-5525.
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, Government of Ontario