Roundup: Provincial R&D Tax Credits

January 16, 2015 SRED

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R&D tax credits Canada — The CRA has wrangled together a list of provincial and territorial R&D credits.

This past week, the Canada Revenue Agency (CRA) posted a summary of Research and Development (R&D) tax credits available throughout the provinces and territories. These tax credits can help support the R&D portion of a company’s Scientific Research and Experimental Development (SR&ED) work. For a full list, read the CRA’s Summary of Provincial and Territorial R&D Tax Credits.

R&D Tax Credits in Ontario

The CRA’s roundup of R&D tax credits summarizes the scope of the tax credit, eligible expenditures, available forms, and more. While most provinces and territories have only a single R&D tax credit (the Research and Development Tax Credit), Ontario has the following:

Ontario Innovation Tax Credit (OITC): 10% refundable tax credit
Ontario Business-Research Institute Tax Credit (OBRITC): 20% refundable tax credit
Ontario Research and Development Tax Credit (ORDTC): 4.5% non-refundable tax credit
Ontario Transitional Tax Debits and Credits: From the CRA website, “Corporations may be subject to an Ontario transitional tax debit or be eligible to claim an Ontario transitional tax credit due to the harmonization of the two legislative acts governing federal and Ontario income taxes.”

For more information on these tax credits and on other tax credits available across the country, please see the CRA’s Summary of Provincial and Territorial R&D Tax Credits.