Open
Ontario Shortline Railway Investment Tax Credit
Refundable tax support for Ontario shortline railways
Last Update: June 16, 2026
Funding available
$ 8,500
Timeline
- Open Date : May 15, 2025
- Closing date : January 1, 2030
Location
Ontario, Canada
Overview
A refundable Ontario tax credit supports shortline railway infrastructure maintenance, repair and improvement. Eligible corporations can claim 50% of eligible capital and labour expenditures, up to $8,500 per track mile in Ontario.
/100
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
Timeline
- Open Date : May 15, 2025
- Closing date : January 1, 2030
Eligible candidates
Eligible Industries
- Transportation and warehousing
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 of railway track infrastructure
- Repair of railway track infrastructure
- Improvement of railway track infrastructure
Documents Needed
- Application Form for Certificate of Eligibility
- Supporting documentation for eligibility and track miles
- Proof of Ontario shortline railway licence or Railway Operating Certificate
- Corporate tax return details needed to claim the credit
Official resources
Eligibility
Who is eligible?
- Shortline railway corporations licensed in Ontario
- Class II or III rail carriers with a Railway Operating Certificate
Who is not eligible
- Class I rail carriers
- Urban rail transit systems
- Industrial railways
Eligible expenses
- Eligible capital expenditures for railway track infrastructure
- Eligible labour expenditures for track maintenance, repair, or improvement
Ineligible Costs and Activities
- Railway track acquired or leased during the taxation year
- Costs not related to track maintenance, repair, or improvement
- Locomotives, rolling stock, and buildings
- Property not used as part of track work or not ancillary to it
Eligible geographic areas
- Ontario
How to apply
- Step 1: Request the Certificate of Eligibility application form from MTO by email.
- Step 2: Complete the form and gather supporting documents.
- Step 3: Submit the completed form and supporting documents to MTO by email.
- Step 4: Receive the Certificate of Eligibility if approved.
- Step 5: Use the certificate details when filing the T2 corporation income tax return with the CRA.
Processing and Agreement
- Apply to the Ministry of Transportation for a Certificate of Eligibility
- MTO reviews the application for completeness and eligibility details
- After approval, claim the credit on the T2 corporation income tax return with the required certificate details
- CRA processes the return and issues the credit based on the tax return
Additional information
- The tax credit is jointly administered by the Ontario Ministry of Transportation and the CRA.
- A Certificate of Eligibility is required before claiming the credit.
- The certificate can be amended or revoked in certain cases.
- Applications may be resubmitted if the information changes after a decline.
Contacts
Frequently Asked Questions about the Ontario Shortline Railway Investment Tax Credit Program
What is the Ontario Shortline Railway Investment Tax Credit?
A refundable Ontario tax credit supports shortline railway infrastructure maintenance, repair and improvement. Eligible corporations can claim 50% of eligible capital and labour expenditures, up to $8,500 per track mile in Ontario.
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:
Ontario qualifying corporation
Certificate of Eligibility required
Track infrastructure work only
What expenses are eligible under Ontario Shortline Railway Investment Tax Credit?
Maintenance of railway track infrastructure
Repair of railway track infrastructure
Improvement of 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.