Amount:

No Fixed Amount

Type of Program:

Tax Credits


Description:

The ORDTC is a non-refundable tax credit based on eligible scientific research and experimental development performed by qualifying corporations in Ontario to reduce their Ontario corporate income tax payable.

Comments on Funding:

Funding is a non-refundable tax credit based on eligible expenditures incurred by a corporation in a tax year. The ORDTC rate is:

  • 4.5% for tax years that end before June 1, 2016;
  • 3.5% for tax years that start after May 31, 2016;
  • prorated for a tax year that ends on or after June 1, 2016, and includes May 31, 2016.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

Applicant must:

  • be corporations;
  • have a permanent establishment in Ontario;
  • carry/have carried SR&ED in this province.

Eligible expenditures are reduced by government and non-government assistance, but not the ORDTC or the federal SR&ED ITC. The ORDTC will reduce the federal pool of deductible SR&ED expenditures and qualified SR&ED expenditures.

Documentation Needed:

Corporations may claim the tax credit on Schedule 508 and file it with their T2 corporation income tax return.

Carry back 3 years to reduce Ontario corporate income tax payable, but not to a tax year that ends before January 1, 2009. Carry forward 20 years.

Other Things to Note:

The ORDTC is administered by the Canada Revenue Agency after December 31, 2008.

About the author 

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe's background and how he can help your business.

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