Ontario Research Employee Stock Option Credit


Notice to the reader: The Ontario Research Employee Stock Option Credit was available for taxation years up to and including 2009. The tax credit is not available after December 31, 2009.

The Ontario Research Employee Stock Option (ORESO) credit is an incentive to help Ontario high technology companies find and keep highly skilled research employees.

How it works

If you do research for an eligible research and development company, the credit can reduce or eliminate your Ontario personal income tax on up to $100,000 of taxable income each year. The credit applies when:

  • the company agrees to sell or issue its shares to you as an eligible employee in a stock option agreement
  • the company's offer was made after December 21, 2000 and before May 18, 2004
  • you bought that company's stock in accordance with the stock option agreement, and
  • you reported the stock option benefit in your personal income tax return by 2009.

Do I qualify?

You and the company offering the stock options must meet certain conditions to qualify for this program. Read the Ontario Research Employee Stock Option Credit Information Notice to learn more.

How is the credit calculated?

The credit is calculated as a refund. The Ontario Ministry of Finance administers the program and issues the refund cheques to you. The ministry calculates the refund based on information from:

  • your application
  • your employer
  • your personal income tax return (i.e., Form ON428 - Ontario Tax, filed as part of your T1-General return), and
  • your Notice of Assessment or Notice of Reassessment from the Canada Revenue Agency (CRA).

How do I apply?

  1. Complete the ORESO Credit - Application for Refund [PDF - 303 KB]
  2. Attach copies of these four documents:
    1. the ORESO Credit - Certificate of Eligible Stock Option Agreements - Individual [PDF - 277 KB]
    2. the ORESO Credit - Notice of Benefit - Individual [PDF - 287 KB] provided by your employer
    3. Form ON428 - Ontario Tax, that you submitted to CRA when you filed your income tax return
    4. your Notice of Assessment and any Notice of Reassessment for the applicable tax year from the (CRA)
  3. Mail all documents to the Ontario Ministry of Finance, Client Services Branch, PO Box 624, Oshawa ON  L1H 8H8.
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