Ontario regional opportunities investment tax credit
A 10% refundable income tax credit applies to capital investments.
To be eligible, a corporation must:
- be a Canadian-controlled private corporation throughout the tax year
- have a permanent establishment in Ontario at the time a qualifying investment is made
- make a qualifying investment in a designated region of the province
The corporation can be located anywhere in Ontario, but the investment must be made in a designated region to qualify for the tax credit.
For the period from March 24, 2021, to December 31, 2023, the credit rate was temporarily doubled to 20%.
Eligible property is capital property included in capital cost allowance class 1 or class 6 with some exceptions. Expenditures for these classes include costs for constructing, renovating, or acquiring eligible commercial and industrial buildings.
If the property is a building, or an addition or alteration to a building, at least 90% of the floor space of the building is used at the end of the tax year for a non-residential use.
The tax credit is available for expenditures of more than $50,000 and up to a limit of $500,000 in the tax year. In general, the qualifying region includes the north, the east (except the Ottawa region) and the south-west of Ontario.
A qualifying corporation that is associated with one or more other corporations during a particular tax year may claim this credit if each of the other corporations has agreed in writing to waive, under subsection 97.1(7) of the Taxation Act, 2007 (Ontario), its right to claim this credit for any tax year of the other corporation that overlaps with the particular tax year.
Claiming the credit
File a completed Schedule 570, Ontario Regional Opportunities Investment Tax Credit, with your return. By filing this schedule, you confirm that you have obtained waivers from all associated corporations. Do not file the waivers with the schedule, but keep them in case the CRA asks for them later.
For more information on the tax credit, see the schedule and section 97.1 of the Taxation Act, 2007 (Ontario).
On line 472 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit you are claiming.