Ontario Regional Opportunities Investment Tax Credit (ROITC)

• Refundable Corporate Income Tax credit of 10% for eligible expenditures exceeding $50,000, up to a maximum of $500,000 per year, with a maximum credit of $45,000.
• Temporary enhancement: 20% refundable tax credit for eligible expenditures exceeding $50,000 and up to $500,000, for property available for use between March 24, 2021, and before January 1, 2024, with a maximum credit of $90,000 per year.

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.

Who is eligible?

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.

Eligible expenses

• Acquisition costs for eligible commercial or industrial buildings (or other structures) included in capital cost allowance classes 1 or 6 for income tax purposes, located in designated regions.
• Construction expenses for developing new eligible commercial or industrial buildings in designated regions.
• Renovation costs for eligible commercial or industrial buildings in designated regions.

Eligible geographic areas

• Northern Ontario: District of Algoma
• Northern Ontario: District of Cochrane
• Northern Ontario: District of Kenora
• Northern Ontario: District of Manitoulin
• Northern Ontario: District of Nipissing
• Northern Ontario: District of Parry Sound
• Northern Ontario: District of Rainy River
• Northern Ontario: District of Sudbury and City of Greater Sudbury
• Northern Ontario: District of Thunder Bay
• Northern Ontario: District of Timiskaming
• Southern Ontario: City of Kawartha Lakes
• Southern Ontario: County of Bruce
• Southern Ontario: County of Elgin and City of St. Thomas
• Southern Ontario: County of Essex, City of Windsor, and Township of Pelee
• Southern Ontario: County of Frontenac and City of Kingston
• Southern Ontario: County of Grey
• Southern Ontario: County of Haliburton
• Southern Ontario: County of Hastings, City of Belleville, and City of Quinte West
• Southern Ontario: County of Huron
• Southern Ontario: County of Lambton
• Southern Ontario: County of Lanark and Town of Smiths Falls
• Southern Ontario: County of Lennox and Addington
• Southern Ontario: County of Middlesex and City of London
• Southern Ontario: County of Northumberland
• Southern Ontario: County of Oxford
• Southern Ontario: County of Perth, City of Stratford, and Town of St. Marys
• Southern Ontario: County of Peterborough and City of Peterborough
• Southern Ontario: County of Prince Edward
• Southern Ontario: County of Renfrew and City of Pembroke
• Southern Ontario: District of Muskoka
• Southern Ontario: Municipality of Chatham-Kent
• Southern Ontario: United Counties of Leeds and Grenville, City of Brockville, Town of Gananoque, and Town of Prescott
• Southern Ontario: United Counties of Prescott and Russell
• Southern Ontario: United Counties of Stormont, Dundas and Glengarry, and City of Cornwall

• 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

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.