Up to $45k in Tax Credit Available for Corporations Expanding Operations

The Regional Opportunities Investment Tax Credit (ROITC) aims to encourage capital spending, economic growth, and job development in areas of the province that experienced a decline in jobs between 2009 and 2019. As of the 2021 Ontario Budget, the credit has been temporarily enhanced to provide an additional 10% credit for expenditures in excess of $50,000 and up to $500,000 for eligible property.

Eligible Applicants

To be eligible, a corporation must:

  • Be a Canadian-controlled private corporation throughout the tax year
  • Have a permanent establishment in Ontario at the time a qualifying investment is made
  • Make a qualifying investment in a designated region of the province

Eligible Activities 

To qualify for the tax credit, investments must:

  • Be used to acquire, construct or renovate an eligible property in a designated region
  • Become available for use on or after March 25, 2020 and in the taxation year in which the tax credit is being claimed

Eligible properties:

  • Commercial or industrial buildings (or other structures) that are included in capital cost allowance classes 1 or 6 for income tax purposes
  • Located in a designated region

Funding Details

  • Corporations must invest more than $50,000 to qualify and may receive a tax credit of up to $45,000 in respect of its qualifying investments in a year
  • The tax credit amount applies to expenditures in excess of $50,000 up to a maximum of $500,000

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