What’s New With R&D in the 2018 Ontario Budget?
2 min read
2 min read
At the end of March, the Ontario government proposed the 2018-2019 budget that contained new measures for the R&D tax credit programs: The Ontario Innovation Tax Credit (OITC) and the Ontario Research and Development Tax Credit (ORDTC).
Proposed Changes to the OITC
The OITC is a refundable tax credit on eligible R&D expenditures for small and medium-sized businesses (SMBs).
Eligible companies must also adhere to a strict ratio of R&D expenses and top-line revenue.
Should the company’s eligible R&D expenses account for:
Proposed Changes to the ORDTC
The ORDTC is a non-refundable tax credit on eligible R&D expenditures for large corporations.
Also to qualify for the new enhanced rate of 5.5%, a company must have at least 90% of the prior year’s eligible R&D spend in the current taxation year. Otherwise, companies will defer to the basic 3.5% non-refundable rate.
How R&D Partners Can Help?
If you have questions or comments about the OITC or the ORDTC, please do not hesitate to contact Alex Bramos at 1-800-500-7733 for more information.
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