Ontario Innovation Tax Credit

The Ontario Innovation Tax Credit (OITC) is a refundable tax credit. It is available to all corporations that perform scientific research and experimental development (SR&ED) in Ontario.

The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.

The Benefit

The OITC is calculated as 10% of qualifying SR&ED expenses. Qualifying expenses are:

  • 100% of current expenses and
  • 40% of capital expenses

The maximum annual credit is $300,000.

Eligibility

A qualifying corporation:

  • has a permanent establishment in Ontario
  • carries on SR&ED in Ontario during the year and
  • is eligible to claim the investment tax credit under section 127 of the federal Income Tax Act.

How to Apply

Corporations must claim the tax credit on Schedule T2SCH566, and file it with their T2 return.

Learn More

Visit the CRA website for more information. You may also wish to attend a Scientific Research and Experimental Development Seminar.

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