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OngoingOntarioOther incentives

Ontario Innovation Tax Credit (OITC)

Ontario Ministry of Finance / Canada Revenue Agency

Up to $240K

8% refundable credit on qualified expenditures, based on a $3 million expenditure limit; maximum credit $240,000 (years commencing after May 31, 2016)

Refundable credit on qualifying scientific research and experimental development (SR&ED) expenditures performed in Ontario by eligible corporations. Helps smaller R&D-performing companies recover costs in cash.

Open the official page ↗
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How to apply

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Who qualifies

Corporation with a permanent establishment in Ontario that carries out SR&ED in Ontario, is eligible for the federal section 127 investment tax credit, is not exempt from corporation income tax, and files federal form T661. The expenditure limit is reduced if prior-year federal taxable income is between $500,000 and $800,000 or prior-year taxable capital is between $25M and $50M; associated corporations share the limit. Claimed on Schedule 566 with the T2.

CorporationSmall business

Evidence from the official page

  • amount“For taxation years that commence after May 31, 2016, the tax credit rate is 8%” source ↗
  • amount“for taxation years that commence after May 31, 2016, the maximum tax credit amount is $240,000” source ↗
  • amount“Based on an expenditure limit of $3 million” source ↗

Verified 2026-10-08 · High confidence. Always confirm on the official page before applying.