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Ontario Tax Credits and Service

Incentive Name Origin Type Value Requirements Description Link
Apprenticeship Training Tax Credit (ATTC) Provincial Tax Credit Refundable Tax Credit/Financial Incentive The ATTC is based on salaries and wages paid to an apprentice. The maximum credit for each apprenticeship is $10,000 per year. The maximum credit over the first 48-month period of the apprenticeship is $40,000. Available to Ontario businesses that hire and train apprentices in certain skilled trades. The ATTC is a refundable tax credit available to employers who hire and train apprentices in certain skilled trades. More Information
Co-operative Education Tax Credit (CETC) Provincial Tax Credit Refundable Tax Credit/Financial Incentive The CETC is based on salaries and wages paid to a student in a co-operative education work placement. The maximum credit for each work placement is $3,000. Ontario businesses that hire students enrolled in a post-secondary co-operative education program are eligible for the CETC. The CETC is a refundable tax credit available to employers who hire students enrolled in a co-operative education program at an Ontario university or college. More Information
Employer Signing Bonus Provincial Wage Subsidy Businesses may qualify for a $2,000 signing bonus if they register a new apprentice in a sector where there is a high demand for skilled workers. Please refer to link provided for further information. The Employer Signing Bonus will assist employers to hire and register youth under 25 years of age who have left school and require upgrading to meet the registration standards for apprenticeship training. More Information
Job Connect Provincial Support Service Employers who operate a business in Ontario can find a local Job Connect service in their community and get help finding the skilled and qualified employees they need. All employers who operate a business in Ontario are eligible. Job Connect can help employers find and hire the qualified people they need. More Information
Onatrio Computer Animation and Special Effects Tax Credit (OCASE) Provincial Tax Credit Corporations may qualify for a 20% refundable tax credit based on labour expenses for performing computer animation and special effects activities. A qualifying corporation is a Canadian corporation that is Canadian or foreign-owned, has a permanent establishment in Ontario and files an Ontario corporate tax return. The OCASE Tax Credit is a refundable tax credit based on eligible Ontario labour expenditures incurred by a qualifying corporation during a taxation year with respect to eligible computer animation and special effects activities.  More Information
Ontario Film and Television Tax Credit (OFTTC) Provincial Refundable Tax Credit Tax credit of 35% of Ontario labour expenses, and 40% of the first $240,000 of Ontario labour expenses for first time producers. A further credit of 10% of Ontario labour expenses is available for filming outside the Greater Toronto Area. Please refer to link provided for further information. The OFTTC is a refundable tax credit. It is available to corporations for eligible Ontario labour expenses on Ontario film and television productions. The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system. More Information
Ontario Interactive Digital Media Tax Credit (OIDMTC) Provincial Tax Credit Calculated as 40% of eligible Ontario labour expenditures and eligible marketing and distribution expenses incurred after March 26, 2009 by qualifying corporations, regardless of size of corporation, to create eligible interactive digital media products in Ontario.  A qualifying corporation is a Canadian corporation (that is Canadian or foreign-owned) that develops an eligible product at a permanent establishment in Ontario operated by it, and that files an Ontario tax return. The OIDMTC is a refundable tax credit based on eligible Ontario labour expenditures and eligible marketing and distribution expenses claimed by a qualifying corporation with respect to interactive digital media products. More Information
Ontario New Technology Tax Incentive (ONTTI) Provincial Tax Credit This incentive can help a business reduce the costs of purchasing intellectual property for the purpose of implementing a new product or innovation in Ontario. The eligible costs of qualifying intellectual properties are included in a Class 12 capital cost allowance (CCA) pool and allowed as a 100% deduction from income in the year of acquisition. The ONTTI allows a 100% immediate write-off of the eligible cost of qualifying intellectual properties acquired in the course of an intellectual property transfer.  More Information
Ontario Targeted Wage Subsidy Program Provincial Financial Incentive Employers are provided with wage subsidies on a case-by-case basis. Generally the wage subsisdy should not exceed 60% of the total wages paid. The average duration of subsidies is between 26-30 weeks but may last up to 78 weeks. The program assists unemployed Employment Insurance eligible individuals to obtain employment. Employers who employ such individuals are provided with temporary wage subsidies. More Information
Ontario Works Provincial Financial Incentive Employers may access incentives of up to $3000 to hire a person who is receiving Ontario Works to offset supervision and/or training costs. Applicant must sign employment participation agreement. Jobs must last for at least 6 months and be full time (minimum 30 hours a week). The program is delivered by various local municipalities to introduce employers to job seekers who are receiving social assistance. More Information
Sector Initiatives Fund (SIF) Provincial Support Service Helps industry sectors and organizations develop training programs, standards and materials for their workforces. Trade and professional associations, representative employer groups and unions are all eligible to submit proposals under the SIF. Helps industry sectors and organizations develop training programs, standards and materials for their workforces. More Information
Summer Jobs Service Provincial Financial Incentive A partial wage subsidy of $2 per hour hiring incentive to businesses that apply. Students and young people aged 15-24 who are planning on returning to school in the fall. Wage support up to 16 weeks, April-September. The program encourages employers to hire students and young people for summer employment. More Information
Science and Technology Internship Program Provincial Financial Incentive If a business is in the geomatics, geology, mining, forestry or energy sector, it could receive up to $13,200 to hire recent university or college graduates in science, engineering or business for internships of up to 52 weeks. Business must hire and train an intern under the age of 30; provide a work plan and budget (including the salary paid to the intern); plan a project with a duration of 6 to 12 months; and supply at least the same amount of money as received for the intern's salary. The program provides an opportunity for recent graduates in science or engineering to gain relevant and meaningful work experiences within their field of studies. More Information
Ontario Book Publishing Tax Credit (OBPTC) Provincial Tax Credit A business may be entitled to a 30% refundable tax credit, to a maximum of $30,000 per literary work, if it publishes or promotes work by a Canadian author. Business must be a Canadian-controlled corporation; not exempt from income tax; and carry on a book publishing business primarily through an Ontario permanent establishment. The OBPTC is a refundable tax credit available to Ontario book publishing companies that publish and promote literary works by Canadian authors. More Information
Ontario Business Research Institute Tax Credit (OBRITC) Provincial Tax Credit The OBRITC provides a 20% credit for SR&ED expenses incurred in Ontario under an eligible contract with an ERI. Qualifying expenditures are capped at $20 million annually. The maximum annual credit is $4 million. Please refer to link provided for further information. The OBRITC is a refundable tax credit available to a qualifying corporation that performs scientific research and experimental development (SR&ED) in Ontario under a contract with an eligible research institute (ERI). More Information
Ontario Current Cost Adjustment (OCCA): Pollution Control Equipment Provincial Tax Deduction The OCCA is a one-time deduction in the calculation of Ontario taxable income. An eligible asset is prescribed pollution control equipment acquired by the corporation after May 17, 1989. The eligible cost of the equipment is the capital cost of the equipment, restricted to $20 million of acquisitions for each taxation year. The OCCA deduction is an incentive to assist corporations with the costs involved in purchasing new pollution control equipment for use in Ontario. More Information
Ontario Employer Health Tax Exemption Provincial Financial Incentive Business may not have to pay the Ontario Employer Health Tax on the first $400,000 of its payroll. In general, eligible employers for the tax exemption include:
  • private sector employers;
  • organizations that received financial assistance from any level of government but are not under control of government; and,
  • organizations that received financial assistance from any level of government but are not under control of government; and,
For 1999 and following years, eligible employers are exempt on the first $400,000 of payroll. More Information
Ontario Production Services Tax Credit (OPSTC) Provincial Tax Credit A Canadian or foreign-controlled production company may qualify for a 25% refundable tax credit based on eligible production expenses. A qualifying corporation is a Canadian or foreign-owned corporation which carries on a film or video production or production services business at a permanent establishment in Ontario, files an Ontario corporate tax return and owns the copyright in the eligible production or contracts directly with the copyright owner to provide production services to an eligible production. The OPSTC is a refundable tax credit based upon eligible Ontario labour and other production expenditures incurred by a qualifying corporation with respect to an eligible film or television production. More Information
Ontario RST Exemption on R&D and Manufacturing Equipment Provincial Financial Incentive Business may be able to apply for a Retail Sales Tax (RST) exemption on the purchase of machinery and equipment used in manufacturing and R&D activities. Please refer to link provided for further information. If you qualify as a manufacturer, qualifying items may be bought without paying RST. More Information
Ontario Sound Recording Tax Credit (OSRTC) Provincial Tax Credit An Ontario corporation may qualify for a 20% refundable tax credit for expenses related to the production of a sound recording or music video. An eligible sound recording company is a Canadian-controlled corporation having carried on a sound recording business in Ontario for at least 12 months as a corporation or, prior to incorporation, as a sole proprietor or partnership. The Ontario Sound Recording Tax Credit (OSRTC) is a refundable tax credit based upon eligible production and marketing costs incurred by a qualifying corporation with respect to an eligible Canadian sound recording. More Information
Ontario Innovation Tax Credit (OITC) Provincial Tax Credit The OITC is calculated at 10% of qualifying expenditures. Maximum claim is $300,000 per taxation year. The credit is available to all public and private corporations with permanent establishments in Ontario. Only expenditures for scientific research & experimental development carried on in Ontario, for which the taxpayer is eligible for federal (SR & ED) investment tax credit, qualify for the OITC. The OITC is a 10% refundable tax credit for corporations that make expenditures on scientific research & experimental development (SR&ED) carried on in Ontario. The government has extended the OITC to more small and medium-sized corporations and expanded the tax credit to more qualifying SR&ED expenditures. More Information
Ontario Labour Market Partnerships Provincial Financial Incentive The program is eligible to partnerships among employers, employer/employee associations, and community organizations. Projects eligible for funding include:
  • individual projects that have a start and a finish (funding is not to be used for ongoing projects);
  • projects that have measurable results for which the partners are accountable; and,
  • projects that involve preparing and implementing plans and strategies to address human resource needs and to enable the organizations to keep pace with changes in the labour market.
The Ontario Labour Market Partnerships program supports partnerships among employers, employer/employee associations, and community organizations. More Information
Ontario Research & Development Tax Credit (ORDTC) Provincial Tax Credit The Ontario government provides a 4.5% non-refundable tax credit for scientific research and experimental development (SR&ED) carried out in Ontario. An eligible expenditure is an expenditure that is incurred by a corporation during a taxation year ending after 2008 for SR&ED carried on through an Ontario permanent establishment, and is a qualified SR&ED expenditure for purposes of the federal ITC. For taxation years ending after December 31, 2008, the Ontario government provides a 4.5% non-refundable tax credit for scientific research and experimental development (SR&ED) carried out in Ontario. More Information
ecoENERGY for Renewable Power Provincial Financial Incentive ecoENERGY for Renewable Power will provide an incentive of one cent per kilowatt-hour for up to 10 years to eligible low-impact, renewable electricity projects constructed between April 1, 2007 and March 31, 2011. Please refer to link provided for further information. ecoENERGY for Renewable Power will invest $1.48 billion to increase Canada's supply of clean electricity from renewable sources such as wind, biomass, low-impact hydro, geothermal, solar photovoltaic and ocean energy. More Information
ecoEnergy Retrofit (industry) Provincial Financial Incentive Up to 25% of project costs to a maximum of $50,000 per application and $250,000 per corporate entity. Please refer to link provided for further information. NRCan is providing financial assistance to SMEs to help them invest in energy saving retrofits. Eligible SMEs can receive 25% of project costs to a maximum of $50,000 per application and $250,000 per corporate entity. The program has been extended to March 31, 2012, subject to the availability of funds. More Information
Feed in Tariff (FIT) Ontario Power Authority Provincial Financial Incentive The program offers stable prices under long-term contracts for energy generated from renewable sources, including biomass, biogas, landfill gas, on-shore and off-shore wind, solar photovoltaic (PV) and waterpower. Please refer to link for more details. Please refer to link provided for further information. The program is North America's first comprehensive guaranteed pricing structure for renewable electricity production. It offers stable prices under long-term contracts for energy generated from renewable sources, including biomass, biogas, landfill gas, on-shore and off-shore wind, solar photovoltaic (PV) and waterpower. T More Information
Going Global Innovation - Foreign Affairs and International Trade Canada Provincial Financial Incentive Going Global Innovation provides assistance by contributing up to 75% of eligible expenses. Please refer to link provided for further information. Going Global Innovation (GGI) is specifically designed to promote and enhance Canada's international innovation efforts by supporting Canadian companies and/or researchers in pursuing international research and development (R&D) collaborative opportunities through the development of partnerships with key players in other countries/economies. More Information
Industrial R & D Fellowships (IRDF) - Natural Sciences and Engineering Research Council of Canada (NSERC) Provincial Financial Incentive NSERC's contribution towards a fellow's salary is $30,000 per year for two years. The organization supplements NSERC's contribution. This supplement should amount to at least $10,000 per year. Please refer to link provided for further information. The IRDF program helps partners hire a postdoctoral researcher for a two-year period to undertake a project (or projects) of importance to the organization and to evaluate the fellow for potential long-term employment. More Information
Ontario Solar Thermal Heating Incentive Program (OSTHI) Provincial Financial Incentive The incentive provides a maximum of $80,000 per solar air installation and $400,000 per solar water installation. Please refer to link provided for further information. Through OSTHI, the Ontario Government has allocated up to $14.4 million dollars, available until March 31, 2011 to encourage entities in the industrial, commercial and institutional sectors (“ICI Entities”) in Ontario to install qualifying solar thermal heating equipment. More Information
Summer Company Program Provincial Financial Incentive Awards of up to $3,000 per applicant. Please refer to link provided for further information. The Summer Company Program provides hands-on business training and mentoring - together with awards of up to $3,000 - to help enterprising youth start up and run their own summer business. More Information
Technology Development Fund - Ontario Power Authority Provincial Financial Incentive The Technology Development Fund will fund essential costs important to the execution project activities. Please refer to link provided for further information. The Technology Development Fund is a grant fund established to help promote the development and commercialization of technologies that have the potential to improve electricity supply, conservation or demand management. More Information