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Ontario small business deduction (SBD)
Reduces Ontario corporate tax for eligible CCPCs
Last Update: March 4, 2026
Funding available
Up to 8.3% of project cost
Timeline
- Open continuously
Location
Ontario, Canada
Overview
The Ontario Small Business Deduction reduces Ontario basic income tax for eligible CCPCs. It applies to Ontario small business income at an 8.3% deduction rate, resulting in a 3.2% lower effective tax rate.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- No objectives are currently available
Eligible Funding
- Up to 8.3% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- For-profit business
Annual revenue
- $ 50,000,000 maximum revenue
Organisation size
- All organization sizes
Audience
- Startups
Next Steps
1
Determine your project
2
Validate your eligibility
Documents Needed
- Schedule 500, Ontario Corporation Tax Calculation
- Schedule 5, Tax Calculation Supplementary – Corporations
- T2 Corporation Income Tax Return
Eligibility
Who is eligible?
- Canadian-controlled private corporations (CCPCs) operating in Ontario
Who is not eligible
- Corporations that are not CCPCs throughout the tax year
- CCPCs with taxable capital employed in Canada of $50 million or more
Eligible geographic areas
- Ontario
Additional information
- The Ontario small business deduction is calculated using the corporation's Ontario small business income and the small business deduction rate for the year.
- The reduction and elimination of the deduction are based on the taxable capital employed in Canada during the previous tax year.
- Ontario small business income is capped by the corporation's Ontario taxable income and is determined using the Ontario domestic factor.
- Schedule 500 is used as a worksheet for calculation and does not need to be filed with the corporate tax return.
Frequently Asked Questions about the Ontario small business deduction (SBD) Program
Here are answers to the most common questions about the Ontario small business deduction (SBD). 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 small business deduction (SBD)?
The Ontario Small Business Deduction reduces Ontario basic income tax for eligible CCPCs. It applies to Ontario small business income at an 8.3% deduction rate, resulting in a 3.2% lower effective tax rate.
How much funding can be received?
Ontario small business deduction (SBD) Funds up to 8.3% of admissible expenses.
Who is eligible for the Ontario small business deduction (SBD) program?
To be eligible for the Ontario small business deduction (SBD) program, you must:
CCPC throughout the tax year
Ontario taxable income required
Who can I contact for more information about the Ontario small business deduction (SBD)?
You can contact Ontario Ministry of Finance.
Where is the Ontario small business deduction (SBD) available?
The Ontario small business deduction (SBD) program is available the province of Ontario.
Is the Ontario small business deduction (SBD) a grant, loan, or tax credit?
Ontario small business deduction (SBD) is a Tax Credits
Who are the financial supporters of the Ontario small business deduction (SBD)?
Ontario small business deduction (SBD) is funded by Ontario Ministry of Finance, Government of Ontario