Incentives
Research and Development Incentives
Striving to be one of the world’s most important locations for technological enhancement and development, Canada and Ontario offer one of the world’s most competitive Research & Development (R&D) cost advantages:- The range of eligible expenses in Canada is more extensive than in the U.S., including 100% of R&D expenses, carry-forward amounts, bonusing for incremental R&D, and cash refunds, in some cases
- Canada has a broader definition of what qualifies for R&D tax credits compared to the U.S.
- There's flexibility in structuring investments, including long-term blended and capital blended arrangements
- Scientific Research & Experimental Development (SR&ED) Tax Incentive Program
- Offers 25-35% refundable/non-refundable research and development tax incentives, supporting technological advancement, uncertainty and content.
- Provides $2 billion in tax credits to more than 18,000 claimants per year.
- A program of the Canada Revenue Agency.
- Ontario New Technology Tax Incentive (ONTTI)
- Ontario Innovation Tax Credit (OITC)
- Canada Foundation for Innovation
- Industrial Research Assistance Program (IRAP)
- IRAP-TPC Pre-Commercialization Assistance to SMEs
- Ontario Commercialization Investment Funds Program
- Ontario Business - Research Institute Tax Credit (OBRITC)
- Ontario Research Employee Stock Option Credit
- Ontario Research Fund (ORF)
- Ontario Research Oriented Investment Fund Program
- Ontario Retail Sales Tax Exemption on R&D and Manufacturing Equipment
For information about additional incentives programs, please visit the Incentives Programs section of the Resource Library.
