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TAX CREDITOntario

Ontario Innovation Tax Credit (OITC)

Administered by Government of Ontario · Last verified: July 2026

Ontario's refundable tax credit for businesses conducting R&D in Ontario. Smaller companies get a higher rate. Even if you have no taxable income, you can get a cheque from the government.

See if I qualify
Estimated value
8% to 12% of eligible R&D expenditures
Approval likelihood
Medium
Readiness
Mostly ready
Documents needed
4

Eligibility

  • Business types:Incorporated
  • Industries:All industries
  • Provinces:Ontario
  • Requires R&D activity

What you'll need

  • CT23 Ontario corporate tax return
  • Schedule 508 (Ontario Innovation Tax Credit)
  • R&D project documentation
  • Payroll records for technical staff

How to apply

  1. 1Document all R&D activities and costs in Ontario
  2. 2Determine eligible expenditures with your accountant
  3. 3File Schedule 508 with your Ontario corporate return
  4. 4Receive refund even if no taxes owed
After you apply

You claim this on your tax return, so the money comes back as a lower tax bill or a refund after you file. If you missed it in a past year, you can often still recover it by adjusting a prior return.

Deadline:Annual: file with your Ontario corporate return

Is your business a fit for Ontario Innovation Tax Credit (OITC)?

Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.

Check my eligibility

Common questions

Who is eligible for Ontario Innovation Tax Credit (OITC)?

Ontario Innovation Tax Credit (OITC) is generally open to incorporated businesses, in Ontario, that carry out research and development. Confirm the full criteria on the official program page before applying.

How much is Ontario Innovation Tax Credit (OITC) worth?

The estimated value is 8% to 12% of eligible R&D expenditures. The actual amount depends on your eligible costs, the program's budget, and approval.

Can I claim Ontario Innovation Tax Credit (OITC) for a past year?

Claimed on a return, so a missed year can usually be recovered by amending. How far back depends on whether you file personally or as a corporation; confirm the eligible years with your accountant.

How do I apply for Ontario Innovation Tax Credit (OITC)?

1. Document all R&D activities and costs in Ontario 2. Determine eligible expenditures with your accountant 3. File Schedule 508 with your Ontario corporate return 4. Receive refund even if no taxes owed

What is the deadline for Ontario Innovation Tax Credit (OITC)?

Annual: file with your Ontario corporate return.

Related programs

TAX CREDIT

Ontario Regional Opportunities Investment Tax Credit

10% of eligible capital costs

TAX CREDIT

Provincial R&D Tax Credits

3.5% to 30% of eligible R&D costs

TAX CREDIT

Ontario Film and Television Tax Credit

35% to 40% of eligible Ontario labour

Find more funding like this

All Ontario grants and creditsBrowse grants by province and industry
A monthly digest

New programs, in your inbox.

Drop your email and we will send new programs, changed caps, and closing deadlines when the first digest goes out. Easy unsubscribe.

Deductly CA

The grants, tax credits, and deductions your business likely qualifies for. Ranked by fit, tied to official sources.

See what you’re owed
Product
  • Eligibility quiz
  • Website scan
  • All programs
  • Compare programs
  • Watch (live changes)
  • The funding journey
  • When to apply
  • Stackability map
  • Document checklist
  • Calculators
  • Tracker
  • Learn
  • Pricing
Resources
  • For accountants
  • Data quality
  • Public API
  • RSS feed
  • What's new
  • Roadmap
  • Press
  • vs ChatGPT
  • vs Benefits Finder
By province
  • Ontario
  • British Columbia
  • Alberta
  • Quebec
  • Manitoba
  • Saskatchewan
  • All provinces
By industry
  • Technology & Software
  • Manufacturing
  • Retail & E-commerce
  • Food & Beverage
  • Professional Services
  • Creative & Media
  • All industries
For
Women entrepreneursNewcomersIndigenous businessYouth foundersBlack entrepreneursFirst-hire employers
Recent guides
Deductions · 8 min

Every deduction Canadian small businesses miss

Grants · 10 min

8 grants every Canadian business owner should know about

Deductions · 7 min

The Small Business Deduction, fully explained

© 2026 DeductlyPrivacyTermsAboutFrançaisContact
System status

Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.