Can you stack Ontario Innovation Tax Credit (OITC) and Scientific Research and Experimental Development (SR&ED) Tax Credit?
Yes. Ontario Innovation Tax Credit (OITC) and Scientific Research and Experimental Development (SR&ED) Tax Credit can be combined. They fund different things, so the trick is simple: apply to each separately and never claim the same dollar twice.
Ontario Innovation Tax Credit (OITC)
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.
Scientific Research and Experimental Development (SR&ED) Tax Credit
Canada's largest federal innovation incentive, run by the CRA. It reimburses a share of eligible R&D salaries, materials, and contractor costs as an investment tax credit: a 35% refundable credit for qualifying Canadian-controlled private corporations and 15% for other businesses, on eligible expenditures. Claimed on federal Form T661, it has a hard 18-month filing window from fiscal year-end. Most provinces add a stackable R&D credit on top.
How to stack them
- 01Confirm you meet each program's eligibility on its own. Ontario Innovation Tax Credit (OITC) and Scientific Research and Experimental Development (SR&ED) Tax Credit are assessed separately.
- 02Apply to each program through its own application. There is no combined form.
- 03Allocate distinct costs to each program. You cannot claim the same dollar of expense under both, but you can fund different parts of the same project.
- 04Track both deadlines and keep the paperwork separated, so each claim stands on its own.
Stacking rules vary by program and change over time. Confirm the current rules with each program, or take the quiz and we will flag the combinations you qualify for.