Ontario New Technology Tax Incentive
The Ontario New Technology Tax Incentive (ONTTI) allows a 100% immediate write-off of the eligible cost of qualifying intellectual properties acquired in the course of an intellectual property transfer. An intellectual property transfer is an acquisition of qualifying intellectual property by a corporation from an unrelated person for the purpose of implementing an innovation or an invention in the corporation's business that is carried on in Ontario.
Eligibility
The eligible costs of qualifying intellectual properties are included in a Class 12 capital cost allowance (CCA) pool and allowed as a 100% deduction from income in the year of acquisition. The expenditure limit for a taxation year is $20 million. A taxpayer's total ONTTI deduction for a taxation year is equal to the total amount of CCA allowed in respect of each ONTTI property. Neither the half-year rule nor the available for use rule applies.
The ONTTI is included on Ontario CCA Schedule
.
For a corporation whose Ontario allocation is less than 100%, an additional deduction is claimed on Line 663 of the tax return.
