To foster world-class research institutions in Ontario and to promote partnerships between business and Ontario non-profit research institutions, the 1997 Budget introduced the Ontario Business Research Institute Tax Credit (OBRITC).
The Benefit
The OBRITC provides a qualifying corporation with a 20% refundable tax credit for a scientific research and experimental development (SR&ED) expenditures incurred in Ontario under an eligible contract with an eligible research institute (ERI). With an annual $20 million cap on qualifying expenditures, the maximum tax credit a corporation or an associated group of corporations can claim is $4 million. Small businesses may claim the 20% OBRITC in addition to the 10% Ontario Innovation Tax Credit for a combined tax credit of 30% of qualifying expenditures.
How to Apply
A corporation making a claim for the OBRITC must apply to the minister for an advance ruling before the corporation or partnership incurs an expenditure under an eligible research institute contract.
For information on how to request an advance ruling or applications for an advance ruling, please contact:
Ministry of Revenue,
Tax Advisory Services Branch, Corporations Tax Section
33 King Street West 4th Floor
PO Box 622
Oshawa ON L1H 8H6
905 433-6618
To claim, complete CT23 Schedule 198
and enter the amount on Line 198 of the tax return.
