DIRECT FINANCIAL ASSISTANCE

Regional Grant Funds (Multiple Programs): Ontario offers multiple grant funding programs to support competitive economic development projects across the province. Competitive projects of strategic importance can receive grant awards of up to $1.5 million for forgivable loans up to $500,000 calculated as a percentage of eligible project costs. Eligible projects must create at least 15 new jobs and invest at least $500,000 to qualify.

TAX CREDITS

Ontario Made Manufacturing Investment Tax Credit: Tax credit that is available to Ontario manufacturers to support buildings, machinery and equipment used for manufacturing or processing. The credit is a 10% refundable corporate income tax credit. Eligible companies can receive a tax credit of up to $2 million a year.

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Co-operative Education Tax Credit:  A refundable tax credit available to employers who hire students enrolled in a co-operative education program at an Ontario university or college.  The tax credit is based on salaries and wages paid to a student in a co-operative education work placement. Corporations can claim 25% of eligible expenditures. The maximum credit for each work placement is $3,000.

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‍Ontario Research & Development Tax Credit (ORDTC):  The ORDTC is a 3.5% non-refundable tax credit on eligible R&D expenditures. Unused credits can be carried back 3 years and carried forward 20 years.

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‍Ontario Business Research Institute Tax Credit:  Eligible corporations can claim a 20% refundable tax credit for qualified expenditures on scientific research and experimental development work performed in Ontario under contract with eligible research institutes. Qualified expenditures are capped at $20 million annually. The maximum annual tax credit is $4 million.‍

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Ontario Innovation Tax Credit: This program offers a refundable tax credit to eligible corporations for qualified expenditures on scientific research and experimental development performed in Ontario. The tax credit rate is up to 8% of qualified expenditures and has a maximum annual expenditure limit of $3 million. The credit is limited based on the amount of the corporation’s federal taxable income and taxable capital. ‍

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Ontario Digital Media Tax Credit: In order to promote interactive digital media products, the province offers a refundable tax credit ranging from 35% to 40% for eligible expenditures on labor and marketing in Ontario. Eligible companies include Canadian corporations with permanent establishment in Ontario and which files an Ontario tax return.

JOB TRAINING

Canada-Ontario Job Grant (COJG) – Eligible projects can receive workforce training grants of up to one-sixth of eligible training costs up to a max of $10,000 per person.

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Last Updated: July 2023