Changes to Ontario’s OITC and ORDTC Tax Credit Percentages

The SR&ED tax credit along with their ecosystem of partner tax credits are always in flux.  Keeping on top of the latest changes in all of Canada’s is no easy task.  Here are the latest up dates to come out of the Ontario Government’s 2016 Budget titled “Jobs for Today, Jobs for Tomorrow.”

The Ontario provincial government announced the following changes in their latest provincial budget. These changes will mainly affect what are called “top up” programs. Credits for these programs are usually claimed in conjunction with the SR&ED tax program. One of the more significant of Ontario’s Provincial “Top Up” program is called the the Ontario Research and Development Tax Credit (ORDTC).

  • The Ontario Research and Development Tax Credit (ORDTC) will now sit at 3.5% as opposed to 4.5%
  • Whereas the Ontario Innovation Tax Credit (OITC) will currently be applied at 8% rather than the previous 10%

It’s important to note that these changes will affect eligible SR&ED projects and expenses generated or incurred in the years that end on or after the 1st of June 2016.  All of those on your team involved tracking SR&ED activities should take note of these changes.

Still not quite sure if you project qualifies for SR&ED tax credit or how these new changes in Ontario’s budget will affect funding for your SR&ED projects. Book your free consult today.

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