Regional Opportunities Investment Tax Credit
ON, Canada
Tax credit for capital investments in commercial properties
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateMay 12, 2020
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Construction
- Manufacturing
grant_single|grantors
- Government of Ontario
- Ontario Ministry of Finance
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a 10% refundable Corporate Income Tax credit, up to $50,000, if you are building, renovating or acquiring commercial or industrial buildings in designated regions in Ontario.
grant_single_labels|terms_and_conditions
The Regional Opportunities Investment Tax Credit provides financing modalities through refundable credits to incentivize corporate investments in designated regions. These credits are part of Ontario's broader strategy to stimulate regional economic growth and support business expansion.
- A refundable Corporate Income Tax credit of 10% on qualifying expenditures over $50,000, capped at $500,000 per year.
- An enhanced credit rate of 20% for qualifying expenditures occurring after March 24, 2021, and before January 1, 2024, also limited to $500,000 with a maximum credit potential of $90,000 per year.
grant_single_labels|projects
This credit aims to promote economic growth and job creation through investments in eligible properties. Corporations can qualify by undertaking specific construction, renovation, or acquisition projects in designated regions.
- Construction of new commercial or industrial buildings that qualify for capital cost allowance classes 1 or 6.
- Renovation of existing commercial or industrial structures located in designated regions.
- Acquisition of eligible commercial or industrial properties that meet the specified criteria.
grant_single|admissibleProjectsExample
$ 45,000
Renovation of a manufacturing facility to improve safety
$ 90,000
Construction of a community center for social services
$ 90,000
Expansion of a brewery to increase production capacity
$ 50,000
Construction of an eco-friendly office building
$ 85,000
Renovation of a heritage hotel to boost tourism
grant_single_labels|admissibility
Eligibility for the Regional Opportunities Investment Tax Credit is determined by specific criteria related to the corporation's structure, location, and investment activities.
- The corporation must be a Canadian-controlled private corporation throughout the tax year.
- The corporation must have a permanent establishment in Ontario at the time a qualifying investment is made.
- The corporation must make a qualifying investment in a designated region of Ontario.
grant_eligibility_criteria|who_can_apply
The Regional Opportunities Investment Tax Credit is available to Canadian-controlled private corporations that have a permanent establishment in Ontario and make a qualifying investment in a designated region of the province.
grant_eligibility_criteria|eligible_expenses
This tax credit supports investments in the development and enhancement of commercial and industrial facilities to stimulate economic growth and job creation in designated regions. Eligible projects are those that involve significant financial expenditures in acquiring, constructing, or renovating properties that qualify under specified capital cost allowance classes.
- Acquisition of commercial buildings in designated regions for business expansion.
- Construction of new industrial facilities to support regional economic development.
- Renovation of existing commercial infrastructures to enhance operational capacity.
grant_eligibility_criteria|zone
The Regional Opportunities Investment Tax Credit is designed for investments in designated regions of Ontario that experienced low employment growth from 2009 to 2019. These regions have been targeted to foster economic development and job creation through business investments.
- Northern Ontario (Districts of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury with the City of Greater Sudbury, Thunder Bay, and Timiskaming).
- Southern Ontario (City of Kawartha Lakes, Counties of Bruce, Elgin with the City of St. Thomas, Essex with the City of Windsor and Township of Pelee, Frontenac with the City of Kingston, Grey, Haliburton, Hastings with the City of Belleville and Quinte West, Huron, Lambton, Lanark with the Town of Smiths Falls, Lennox and Addington, Middlesex with the City of London, Northumberland, Oxford, Perth with the City of Stratford and Town of St. Marys, Peterborough with the City of Peterborough, Prince Edward, Renfrew with the City of Pembroke, District of Muskoka, Municipality of Chatham-Kent, United Counties of Leeds and Grenville with the City of Brockville and the Towns of Gananoque and Prescott, United Counties of Prescott and Russell, United Counties of Stormont, Dundas and Glengarry with the City of Cornwall).
grant_single_labels|criteria
- Canadian-controlled private corporation throughout the tax year
- Permanent establishment in Ontario at the time a qualifying investment is made
- Qualifying investment in a designated region of the province
- Invest more than $50,000 in eligible commercial and industrial buildings
- Eligible property must become available for use on or after March 25, 2020, and in the taxation year in which the tax credit is being claimed
grant_single_labels|register
Here are the steps to claim the Regional Opportunities Investment Tax Credit:
- Step 1: Assess Eligibility
- Ensure your corporation is a Canadian-controlled private corporation throughout the tax year.
- Verify the corporation has a permanent establishment in Ontario at the time of making a qualifying investment.
- Confirm the investment is in a designated region.
- Step 2: Make Qualifying Investment
- Invest more than $50,000 in constructing, renovating, or acquiring eligible commercial and industrial properties in a designated region.
- Ensure investments are available for use from after March 25, 2020, in the taxation year of claiming.
- Step 3: Calculate the Tax Credit
- Calculate the base 10% refundable tax credit for expenditures exceeding $50,000 up to $500,000.
- If applicable, calculate the enhanced 20% refundable tax credit for the eligible period from March 24, 2021, to December 31, 2023.
- Determine the maximum eligible tax credit amount.
- Step 4: File Tax Credit Claim
- Claim the tax credit on your T2 Corporation Income Tax return.
- Include all required documentation and calculations about qualifying investments.
- Step 5: Contact CRA if Needed
- For inquiries or assistance, contact the CRA through provided phone numbers or visit their website.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The tax credit can also be administered for eligible property that becomes available for use during a period starting on March 25, 2020, and before January 1, 2024.
- The maximum tax credit during the enhanced credit period is capped at $90,000 per year for qualifying corporations.
- The enhanced credit of 20% is available for expenditures in excess of $50,000 up to a $500,000 limit.
- There is a separate contact number provided by the CRA for assistance in different languages and for teletypewriter (TTY) users.
- It is necessary to refer to the Taxation Act, 2007, or the technical bulletin for full understanding of all conditions and eligibility requirements.
- The grant is particularly aimed at boosting recovery and growth for businesses impacted by COVID-19.
grant_single_labels|contact
1-800-959-5525
Apply to this program
Enhancing Growth and Prosperity in Ontario's Designated Regions
The Regional Opportunities Investment Tax Credit is a strategic initiative by the Ontario government to stimulate economic development in regions with historically low employment growth. By offering a refundable Corporate Income Tax credit, this program incentivizes businesses to invest in commercial and industrial properties, thereby fostering job creation and economic revitalization.
In-Depth Examination of the Regional Opportunities Investment Tax Credit
The Regional Opportunities Investment Tax Credit is a visionary scheme devised to enhance the economic landscape of Ontario's regions lagging behind in employment growth. The strategy employs a refundable tax credit mechanism, set at 10% for eligible investments that exceed $50,000 in commercial and industrial properties. This initiative is particularly aimed at Canadian-controlled private corporations with a permanent establishment in Ontario. By facilitating a conducive environment for investment, the program aims to reduce regional disparities, bringing in new opportunities for prosperity to businesses, workers, and families within these communities.
This tax credit is not merely an incentive; it's a substantial booster designed to drive economic growth and stimulate job creation across geographically targeted areas. The eligibility for these benefits is confined strictly to those investments made in the government-designated regions known for their economic setbacks between 2009 and 2019. These include districts in both Northern and Southern Ontario—from the District of Algoma to the Municipality of Chatham-Kent. By channeling funds into these areas, the Ontario government aims to create a ripple effect of economic activity, encouraging businesses to undergo expansion, infrastructure development, and possibly even technological advancements.
To further propel this initiative, a temporary enhancement was introduced, granting an enhanced 20% credit for eligible investments for property expenditures that fall between March 24, 2021, and January 1, 2024. This increase not only amplifies the immediate impact on economic activity but also aids in cushioning businesses that are recovering from the financial blows of the COVID-19 pandemic. This two-pronged strategy—support for new investment alongside recovery from past challenges—demonstrates a forward-thinking approach to economic development.
The Regional Opportunities Investment Tax Credit is calculated on the basis of expenditures that surpass $50,000, with a cap set at $500,000. When the enhanced rates are considered, this could mean possible annual tax savings of up to $90,000, depending on the scale of qualifying investments. Such financial incentives are incredibly appealing, motivating corporations to prioritize investments in designated areas, ensuring both immediate and long-term benefits.
Moreover, this program underscores the importance of strategic location for investment. Corporations based anywhere in Ontario are qualified to receive this tax credit so long as their investments are geographically aligned with the program’s criteria. This flexibility allows businesses of all sizes, from startups to large enterprises, to benefit significantly while contributing to the economic vibrancy of less developed regions.
However, to claim these incentives, corporations must adhere strictly to the criteria laid out by the Canada Revenue Agency and articulated in the Taxation Act, 2007. The procedural journey involves detailed documentation of expenditures and validation of property categorization under specific capital cost allowance classes. Such rigor ensures that only genuine investments drive the desired economic outcomes, thereby maximizing the resourcefulness of public funds.
Thus, the Regional Opportunities Investment Tax Credit stands as a symbol of Ontario's commitment to balanced economic development. By addressing employment disparities and revitalizing economically stagnant areas, this program facilitates a cohesive and equitable economic recovery. Businesses participating in this initiative are not only able to leverage financial benefits but also contribute to crafting a dynamic and resilient workforce, thus propelling Ontario into a new economic era of prosperity and innovation.
