Ontario Innovation Tax Credit (OITC) – Canada Revenue Agency (2022)

Description:

The Ontario Innovation Tax Credit is a refundable tax credit that is applied to the lesser of the corporation’s qualified expenditures incurred in Ontario and its annual expenditure limit.

Comments on Funding:

Funding is applied to the lesser of the corporation’s qualified expenditures incurred in Ontario and its annual expenditure limit at the following rates:
10% for tax years that end before June 1, 2016,
8% for tax years that start after May 31, 2016, or
prorated for a tax year that includes May 31, 2016.

Eligibility:

Applicants must be:

  • corporations with a permanent establishment in Ontario, 
  • doing scientific research and experimental development (SR&ED) in Ontario.

Documentation Needed:

Applicants must fill in prescribed schedule T2SCH31, Investment Tax Credit – Corporations (2017 and later tax years) to claim the OITC.

Other Things to Note:

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

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *