# Ontario SR&ED Tax Credit (OITC) | GrantOps

Ontario offers the Ontario Innovation Tax Credit (OITC), a refundable provincial tax credit that stacks on top of the federal SR&ED investment tax credit. Together, Ontario-based CCPCs can recover up to 43% of qualifying R&D expenditures — making Ontario one of the most attractive jurisdictions in Canada for R&D investment.

## Ontario OITC Rates

- **OITC rate**: 8% refundable tax credit on eligible Ontario SR&ED expenditures
- **Expenditure limit**: $3 million per year (shared among associated corporations)
- **Combined federal + Ontario rate for CCPCs**: Up to 43% (35% federal + 8% OITC) on first $3M
- **Combined rate for other corporations**: Up to 23% (15% federal + 8% OITC)

The OITC is available to corporations that conduct SR&ED in Ontario and have a permanent establishment in the province. The credit is calculated on the Ontario portion of eligible SR&ED expenditures, determined by the corporation's Ontario allocation of taxable income.

## Eligibility

- Corporation must be a CCPC with a permanent establishment in Ontario
- SR&ED work must be performed in Ontario
- Must file a valid federal SR&ED claim (T661) — the OITC piggybacks on the federal claim
- Claim is filed with the Ontario corporate tax return (CT23)

GrantOps automatically calculates your OITC alongside your federal SR&ED claim, ensuring you maximize the combined recovery.

- Automate your SR&ED claim: https://grantops.ai/en/automate-sred/
- Full SR&ED guide: https://grantops.ai/en/sred/
- Get started: https://app.grantops.ai