Significant Financial Incentives support research and technology commercialization
Ontario, in partnership with the Government of Canada, offers a world-leading tax credit system for research and development. When tax credits are factored in, the after-tax cost of $100 in R&D spending can be reduced to less than $36. Some of the many incentives include:
- The Scientific Research and Experimental Development (SR&ED) program is the largest single source of federal government support for industrial research and development tax credits. Generally, a Canadian-controlled private corporation can earn an investment tax credit of 35% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada.
- The Ontario Business-Research Institute Tax Credit is a 20 per cent refundable tax credit for corporations incurring expenditures under a contract with an eligible research institute.
- The Ontario Innovation Tax Credit is a 10% refundable tax credit for SR&ED expenditures. Qualifying SR&ED expenditures include 100% of current expenses and 40% of capital expenditures.Toronto Offers a Very Cost Competitive Environment for Research and Investment