Ontario Business Research Institute Tax Credit

Overview of the Ontario Business Research Institute Tax Credit program:

The business-research institute tax credit is a 20% refundable tax credit based on qualified expenditures for the tax year incurred in Ontario under an eligible contract with an eligible research institute. The annual qualified expenditure limit is $20 million. If a corporation is associated with other corporations at any time in a calendar year, the $20 million limit must be allocated among the associated corporations. The maximum tax credit that a qualifying corporation or an associated group of corporations can claim in a tax year is $4 million (20% of $20 million).

Benefits of the Ontario Business Research Institute Tax Credit program:

• The maximum tax credit that a qualifying corporation or an associated group of corporations can claim in a tax year is $4 million (20% of $20 million).

Eligibility criteria of the Ontario Business Research Institute Tax Credit program:

• You are eligible to claim an Ontario business-research institute tax credit if you meet all of the following conditions:
  • You carried on business in the tax year through a permanent establishment in Ontario
  • You incurred qualified expenditures under an eligible contract with an eligible research institute
  • You were not exempt from tax under Part III of the Taxation Act, 2007 (Ontario)
• Eligible corporations
• You can claim the credit, if the corporation:
  • Carries on business in the tax year through a permanent establishment in Ontario
  • Is not exempt from corporation income tax
  • Entered into an eligible contract with an eligible research institute
  • Is not connected to the eligible research institute
• Eligible research institutes
• Eligible research institutes are generally:
  • Ontario universities or Ontario community colleges
  • Hospital research institutes (large teaching hospitals)
  • Ontario Centres of Excellence or federal Network of Centres of Excellence (operating in Ontario)
  • Non-profit organizations designated as eligible research institutes