Ontario Innovation Tax Credit
The Ontario Innovation Tax Credit (OITC) is a 10% refundable tax credit for qualifying public and private corporations (prior to May 5, 1999 only qualifying Canadian-controlled private corporations [CCPCs] were eligible) having a permanent establishment in Ontario.
The OITC is calculated on qualifying expenditures (annual maximum of $2,000,000) made in the taxation year for Scientific Research and Experimental Development (SR&ED) carried on in Ontario that are eligible for the federal investment tax credit under section 127 of the Income Tax Act (Canada).
The credit is only available for SR&ED performed in Ontario. This program has been available to corporations for taxation years ending after December 31, 1994.
Eligibility
The corporation must carry on eligible SR&ED in Ontario.
How to Apply
To claim the credit, complete the OITC claim form and enter the amount on Line 191 of the tax return.
