The Ontario Tax Exemption for Commercialization (OTEC) provides a ten year tax exemption for new corporations that commercialize intellectual property that is developed by qualifying Canadian universities or colleges.
Eligibility
The exemption is available to qualifying corporations that commercialize intellectual property in priority areas such as:
- bio-economy/clean technologies,
- advanced health technologies and
- certain telecommunications, computer and digital technologies.
A qualifying corporation that is incorporated after March 24, 2008 and before March 25, 2012 is exempt from Ontario Corporate Income Tax and Corporate Minimum Tax for its first ten taxation years.
How to Apply
In order to apply for the exemption, a corporation must first obtain a Certificate of Eligibility from the Ministry of Research and Innovation (MRI). More information on the program and details on how to apply can be found at the MRI's website.
Once a corporation receives a Certificate of Eligibility, it must submit an Application for Refund under the Ontario Tax Exemption for Commercialization [PDF - 100 KB] to the Ministry of Finance.
