Ontario Business Research Institute Tax Credit
Highlights
This program is designed for businesses like yours that are engaged in scientific research and experimental development. By participating, you can claim a 20% refundable tax credit on qualified expenditures. This means you can receive up to $4 million annually to support your innovative projects.
Why Apply?
- Significant Financial Support: Up to $4 million in tax credits can greatly reduce your research and development costs.
- Flexibility: The funds can be used for a wide range of activities, including payments to eligible research institutes.
- Government-Backed: This program offers a reliable source of funding, backed by the government, ensuring stability and trust.
What's in it for You?
- Enhanced Innovation: With additional financial resources, you can push the boundaries of your research and development.
- Competitive Edge: Lower costs mean you can invest more in other areas of your business, giving you a competitive advantage.
- Ease of Qualification: If your business meets the criteria, applying is straightforward and the benefits are substantial.
By being approved for this program, you can significantly boost your research capabilities and drive your business forward.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- This is a refundable tax credit. There are no repayment terms or interest rates.
Eligible Expenses:
- Payments made to eligible research institutes for scientific research and experimental development (SR&ED) performed in Ontario.
- Expenses must qualify for the federal investment tax credit under section 127 of the federal Income Tax Act.
Use of Funds:
- Funds can be used for SR&ED activities performed by eligible research institutes in Ontario.
- The credit is applicable to current expenditures directly related to SR&ED.
Restrictions on Use of Funds:
- Funds cannot be used for non-SR&ED activities.
- Payments in-kind are not eligible.
Fees:
- There are no fees associated with this tax credit program.
Qualifications
- Must carry on business in the tax year through a permanent establishment in Ontario.
- Must not be exempt from corporation income tax.
- Must have entered into an eligible contract with an eligible research institute.
Must not be connected to the eligible research institute.
Disqualifications:
- Corporation connected to an eligible research institute (e.g., if the institute owns more than 10% of voting shares or fair market value of shares, or if they are members of the same partnership).
Description
This program offers your business a 20% refundable tax credit for money spent on scientific research and experimental development in Ontario. This means you can get back 20% of what you spend, up to a maximum of $4 million per year.
What you can use it for:
- Research projects with Ontario universities or community colleges
- Work with hospital research institutes
- Collaborations with Ontario Centres of Excellence or federal Networks of Centres of Excellence
- Projects with designated non-profit research organizations
Conditions:
- The research must be done in Ontario.
- Your business must have a contract with an eligible research institute.
- The money spent must qualify for the federal investment tax credit.
This program is a great way to reduce your research costs and invest in innovation. It helps you keep more of your money while advancing your business through cutting-edge research.
Program Steps
Gather Required Documentation:
- Financial statements
- Business plan
- Details of the intended use of funds
- Eligible contract with a research institute
- Proof of business establishment in Ontario
Download Necessary Forms:
- Schedule 568, Ontario Business-Research Institute Tax Credit
- Schedule 569, Ontario Business-Research Institute Tax Credit Contract Information
- T2 Corporation Income Tax Return
Complete the Forms:
- Fill out Schedule 568 with details of your qualified expenditures.
- Complete Schedule 569 for each eligible contract.
- Ensure all information is accurate and complete.
Submit the Application:
- File Schedule 568 and Schedule 569 with your T2 Corporation Income Tax Return.
- Ensure all forms are submitted to the Canada Revenue Agency.
Contact the Canada Revenue Agency:
- If you have any questions or need assistance, call 1-800-959-5525 or 1-800-665-0354 (TTY).
Review and Follow Up:
- Monitor the status of your application.
- Respond promptly to any requests for additional information from the Canada Revenue Agency.
