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Source verified August 8, 2026
Ontario Shortline Railway Investment Tax Credit
Temporary tax credit for Ontario shortline railways
Latest source updateLast Update: April 9, 2026Latest change: The tax credit content now reflects broader statutory details that affect eligibility, eligible expenditures, and credit terms, while the main program page remains largely unchanged.View change
Latest source update
Last Update: April 9, 2026
Latest change: The tax credit content now reflects broader statutory details that affect eligibility, eligible expenditures, and credit terms, while the main program page remains largely unchanged.
Ontario Shortline Railway Tax Credit updated
The statutory content for the Ontario Shortline Railway Investment Tax Credit now includes additional tax-credit material that changes the program’s practical scope, especially around who qualifies, what expenditures are eligible, and how the credit is framed. The main program overview page appears largely unchanged, and there are no visible changes to dates, contact details, or application instructions. This update should be treated as a meaningful content change for eligibility, funding terms, and target scope because it affects the underlying tax credit rules and related project coverage.
Funding available
$ 8,500
Deadline
January 1, 2030
Opened May 15, 2025
Location
Ontario, Canada
Who can apply
Corporations that satisfy the criteria of a qualifying corporation under clause 97.3(3)(a) of the Taxation Act, 2007 (Ontario).
See full eligibility
Overview
The Ontario Shortline Railway Investment Tax Credit is a 50% refundable corporate income tax credit for qualifying corporations in Ontario. It supports railway track maintenance, repair or improvement through eligible capital and labour expenditures incurred between May 15, 2025, and January 1, 2030.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase production or service capacity
- Increase operational productivity
- Obtain certifications or accreditations
Eligible Funding
- Maximum amount : 8,500 $
- Up to 50% of project cost
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
- Maintenance, repair or improvement of Ontario’s railway track infrastructure.
Documents Needed
- Application Form for Certificate of Eligibility
- Supporting documentation
Official resources
Eligibility
Who is eligible?
- Corporations that satisfy the criteria of a qualifying corporation under clause 97.3(3)(a) of the Taxation Act, 2007 (Ontario).
Who is not eligible
- Class I rail carriers.
- Urban rail transit systems.
- Industrial railways.
Eligible expenses
- Eligible capital and labour expenditures incurred for railway track maintenance, repair or improvement.
Ineligible Costs and Activities
- Railway track acquired or leased by the corporation during the taxation year.
- Costs not attributable to the maintenance, repair or improvement of railway track.
- Locomotives, rolling stock or buildings.
- Property that is not ancillary to, or used as part of, the maintenance, repair or improvement of railway track.
Eligible geographic areas
- Ontario
How to apply
- First apply to MTO for a Certificate of Eligibility for the taxation year.
- Then include the required details from the OSRITC Certificate of Eligibility when filing the corporate tax return for the taxation year with the CRA.
Processing and Agreement
- The application will be reviewed by an MTO representative for completeness, and missing required information or documentation will stop the file until the requested items are submitted.
- If an application is declined, the applicant/contact will be advised in writing of the reason and may resubmit if the information changes.
- A Certificate of Eligibility may be amended to correct an error and, under certain circumstances, may be revoked by MTO.
- A corporation must file its T2 return for a taxation year with the CRA within six (6) months after the end of the corporation’s taxation year.
- Once the CRA processes the tax return, the amount of the credit, net of any taxes owing, would be paid to the qualifying corporation.
Additional information
- The OSRITC is jointly administered by the Ministry of Transportation (MTO) and the Canada Revenue Agency (CRA).
Contacts
Frequently Asked Questions about the Ontario Shortline Railway Investment Tax Credit Program
What is the Ontario Shortline Railway Investment Tax Credit?
The Ontario Shortline Railway Investment Tax Credit is a 50% refundable corporate income tax credit for qualifying corporations in Ontario. It supports railway track maintenance, repair or improvement through eligible capital and labour expenditures incurred between May 15, 2025, and January 1, 2030.
How much funding can be received?
Ontario Shortline Railway Investment Tax Credit Funds up to 50% of admissible expenses, capped at $8,500 per project.
What is the deadline to apply?
The application deadline for this grant program is January 1, 2030. Applicants must submit their complete application before this date to be considered for funding.
Who is eligible for the Ontario Shortline Railway Investment Tax Credit program?
To be eligible for the Ontario Shortline Railway Investment Tax Credit program, you must:
The corporation satisfies the criteria of a qualifying corporation under clause 97.3(3)(a) of the Taxation Act, 2007 (Ontario).
What expenses are eligible under Ontario Shortline Railway Investment Tax Credit?
Maintenance, repair or improvement of Ontario’s railway track infrastructure.
Who can I contact for more information about the Ontario Shortline Railway Investment Tax Credit?
You can contact Government of Ontario by email at csio@ontario.ca or by phone at 1-800-959-5525.
Where is the Ontario Shortline Railway Investment Tax Credit available?
The Ontario Shortline Railway Investment Tax Credit program is available the province of Ontario.