Financial Incentives

There are a host of federal and provincial tax credits and financial incentives for Canadian companies working with academic institutes located in Ontario. These include:

Provincial:

  • Ontario Business Research Institute Tax Credit
    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).
  • Ontario Innovation Tax Credit
    The 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.
  • Ontario Research and Development Expenditures Deduction
    The Ontario Research and Development Expenditure Deduction allows corporations to exclude from Ontario taxable income the portion of the federal investment tax credit that relates to qualifying Ontario Scientific Research and Experimental Development (SR&ED) expenditures through Ontario pool calculation on CT23 Schedule 161.
  • Ontario Tax Exemption for Commercialization
    The Ontario Tax Exemption for Commercialization (OTEC) provides a ten year tax exemption for new corporations that commercialize intellectual property that is developed by qualifying Canadian universities or colleges.
  • Leverage provincial programs
    Don’t forget to exhaust every relevant program to help fuel your initial product/service launch, and provide you with high-impact tactics that are proven to achieve success in the commercialization of new innovations.

Federal:

  • Scientific Research and Experimental Development (SR&ED) Tax Incentive
    The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada. The process is detailed and involves many touch points throughout. U of T will take care of this process for you so you can devote your energy to refining/completing your innovation.