Regional Opportunities Investment Tax Credit

By mmuise

The Regional Opportunities Investment Tax Credit is a 10% refundable Corporate Income Tax that supports business investment, economic growth and job creation in designated regions across the province that lagged in employment growth between 2009 and 2019.

Comments on Funding:

Funding is in the form of a 10% refundable corporate income tax available for expenditures that exceed $50,000 with a limit of $500,000 for qualifying property. The maximum tax credit a corporation may receive in a year is $45,000 in respect of all qualifying investments.

A temporary enhancement to the credit provides an additional 10% credit for eligible expenditures in excess of $50,000 and up to $500,000 for eligible property in the period beginning on March 24, 2021 and ending before January 1, 2024. The maximum credit would be $90,000 in a year.

Deadline: Rolling deadline

The applicant must be a corporation that:

  • is a Canadian-controlled private corporation throughout the tax year;
  • has a permanent establishment in Ontario at the time a qualifying investment is made;
  • makes 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).
    Investments that qualify for the credit must be made in one of the following designated regions:
  • Northern Ontario (District of Algoma, District of Cochrane, District of Kenora, District of Manitoulin, District of Nipissing, District of Parry Sound, District of Rainy River, District of Sudbury together with the City of Greater Sudbury, District of Thunder Bay, District of Timiskaming);
  • Southern Ontario (City of Kawartha Lakes, County of Bruce, County of Elgin together with the City of St. Thomas, County of Essex together with the City of Windsor and Township of Pelee, County of Frontenac together with the City of Kingston, County of Grey, County of Haliburton, County of Hastings together with the City of Belleville and City of Quinte West, County of Huron, County of Lambton, County of Lanark together with the Town of Smiths Falls, County of Lennox and Addington, County of Middlesex together with the City of London, County of Northumberland, County of Oxford, County of Perth together with the City of Stratford and the Town of St. Marys, County of Peterborough together with the City of Peterborough, County of Prince Edward, County of Renfrew together with the City of Pembroke, District of Muskoka, Municipality of Chathamā€Kent, United Counties of Leeds and Grenville together with the City of Brockville, the Town of Gananoque and the Town of Prescott, United Counties of Prescott and Russell, United Counties of Stormont, Dundas and Glengarry together with the City of Cornwall).
Application Steps:

The applicants can claim the tax credit on their T2 Corporation Income Tax return.

Documentation Needed:

Applicants must submit the T2 Corporation Income Tax return.

Other Things to Note:

The Canada Revenue Agency (CRA) administers tax credits on behalf of Ontario.

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