Ontario Regional Opportunities Investment Tax Credit (ROITC)
Last Update: April 27, 2025
ON, Canada
Tax credit for capital investments in commercial properties
Ontario Regional Opportunities Investment Tax Credit (ROITC) at a glance
Eligible Funding
- From 50,000 to 90,000
- Up to 20% of project cost
Timeline
- Open Date : May 12, 2020
Financing Type
Tax Credits
Eligible Industries
- Construction
- Manufacturing
Grant Providers
- Ontario Ministry of Finance
- Government of Ontario
Status
Open
Overview of the Ontario Regional Opportunities Investment Tax Credit (ROITC) program
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.
Financing terms and conditions
- 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.
Eligible projects & activities
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.
Examples of admissible projects:
$ 90,000
Expansion of a brewery to increase production capacity
$ 90,000
Construction of a community center for social services
$ 45,000
Renovation of a manufacturing facility to improve safety
$ 50,000
Construction of an eco-friendly office building
$ 85,000
Renovation of a heritage hotel to boost tourism
Eligibility criteria of the Ontario Regional Opportunities Investment Tax Credit (ROITC) program
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
Eligibility criteria of the Ontario Regional Opportunities Investment Tax Credit (ROITC) program
- 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
How to apply to the Ontario Regional Opportunities Investment Tax Credit (ROITC) program
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.
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.
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.
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.
5
Contact CRA if Needed
For inquiries or assistance, contact the CRA through provided phone numbers or visit their website.
Additional information
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.
Contact Ontario Ministry of Finance
1-800-959-5525
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