SR&ED Credits Ontario

Maximize Your R&D Investment with Refundable Tax Credits

Increase your innovation returns and secure greater tax advantages by partnering with Coincide to support your scientific research and experimental development (SR&ED) claim.

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Federal SR&ED Tax Credit Overview

Eligible entities for the Federal SR&ED include Canadian-controlled private corporations (CCPCs), foreign-controlled corporations, other corporations, and individuals, trusts and partners.

The tax credit can be carried back three years or carried forward 20 years.

Federal SR&ED Amount

  • CCPCs can earn 35% of the qualified expenditures.
  • Qualifying corporations that are also excluded corporations can earn an ITC of 35%, with up to 40% being refundable.
  • Other corporations can earn a non-refundable ITC of 15% on qualified SR&ED expenditures.
  • Individuals, certain trusts, and certain partnership partners are eligible for a 15% ITC, up to 40% of which is refundable.

How to Claim Federal SR&ED

Step 01

Prepare your tax return

Step 02

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Step 03

Complete and file either T2SCH31 Investment Tax Credit – Corporations or Form T2038-IND Investment Tax Credit (Individuals) with your return

Ontario Research & Development Tax Credit Overview

The Ontario SR&ED credit consists of three tax credits: the Ontario Innovation Tax Credit (OITC), the Ontario Research and Development Tax Credit (ORDTC), and the Ontario Business Research Institute Tax Credit (OBRITC). Read below for information about each tax credit.

Eligible entities for the Ontario SR&ED include CCPCs, foreign-controlled corporations, and other corporations.

Ontario Innovation Tax Credit (OITC) Ontario Research and Development Tax Credit (ORDTC) Ontario Business Research Institute Tax Credit (OBRITC)

Ontario Innovation Tax Credit (OITC)

The OITC is a refundable tax credit. There is no carry-forward or carry-back. Any OITC in excess of the tax otherwise payable will be refunded.

SR&ED Amount

8% of qualified Ontario expenditures.

Special Conditions

There is an annual expenditure limit of $3 million of qualified expenditures phased out when the corporation’s taxable paid-up capital for its preceding tax year exceeds $25 million, and it is eliminated when it reaches $50 million.

The expenditure limit is also phased out when the corporation’s taxable income for its preceding tax year is over $500,000 but does not exceed $800,000.

How to Claim OITC

Prepare your corporate T2 tax return

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Complete and file T2SCH31 Investment Tax Credit – Corporations with your return

Complete and file T2SCH66 Ontario Innovation Tax Credit with your return

Enter the amount you are claiming on line 468 of T2SCH5 Tax Calculation Supplementary – Corporations

SR&ED Amount

8% of qualified Ontario expenditures.

Special Conditions

There is an annual expenditure limit of $3 million of qualified expenditures phased out when the corporation’s taxable paid-up capital for its preceding tax year exceeds $25 million, and it is eliminated when it reaches $50 million.

The expenditure limit is also phased out when the corporation’s taxable income for its preceding tax year is over $500,000 but does not exceed $800,000.

How to Claim OITC

Prepare your corporate T2 tax return

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Complete and file T2SCH31 Investment Tax Credit – Corporations with your return

Complete and file T2SCH66 Ontario Innovation Tax Credit with your return

Enter the amount you are claiming on line 468 of T2SCH5 Tax Calculation Supplementary – Corporations

Ontario Research and Development Tax Credit (ORDTC)

The ORDTC is a non-refundable tax credit. Three years’ carryback and 20 years’ carry-forward are permitted to reduce Ontario corporate income tax payable.

SR&ED Amount

3.5% of qualified Ontario expenditures.

Special Conditions

The eligible expenditures for the ORDTC are reduced by the amount of the OITC and OBRITC.

Corporations can waive the tax credit, or a portion of it, by including a written waiver with their return. The waiver is required to be filed on or before six months after the corporation’s tax year-end, or on an amended return for that year.

How to Claim ORDTC

Prepare your corporate T2 tax return

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Complete and file either T2SCH31 Investment Tax Credit – Corporations with your return

Complete and file T2SCH508 Ontario Research and Development Tax Credit with your return

SR&ED Amount

3.5% of qualified Ontario expenditures.

Special Conditions

The eligible expenditures for the ORDTC are reduced by the amount of the OITC and OBRITC.

Corporations can waive the tax credit, or a portion of it, by including a written waiver with their return. The waiver is required to be filed on or before six months after the corporation’s tax year-end, or on an amended return for that year.

How to Claim ORDTC

Prepare your corporate T2 tax return

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Complete and file either T2SCH31 Investment Tax Credit – Corporations with your return

Complete and file T2SCH508 Ontario Research and Development Tax Credit with your return

Ontario Business Research Institute Tax Credit (OBRITC)

The OBRITC is a refundable tax credit, provided funds are paid to an Eligible Research Institute as designed by the CRA. There is no carry-back or carry-forward. Any OBRITC in excess of tax otherwise payable will be refunded.

SR&ED Amount

20% of qualified expenditures for the tax year incurred in Ontario under an eligible contract.

Special Conditions

Eligible Research Institutes (ERI) as designated by the CRA, are entitled to this tax credit. See the list of designated institutions.

How to Claim OBRITC

Prepare your corporate T2 tax return

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Complete and file either T2SCH31 Investment Tax Credit – Corporations or Form T2038-IND Investment Tax Credit (Individuals) with your return

Complete and file T2SCH568 Ontario Business-Research Institute Tax Credit with your return

Complete and file T2SCH569 Ontario Business-Research Institute Tax Credit Contract Information with your return

SR&ED Amount

20% of qualified expenditures for the tax year incurred in Ontario under an eligible contract.

Special Conditions

Eligible Research Institutes (ERI) as designated by the CRA, are entitled to this tax credit. See the list of designated institutions.

How to Claim OBRITC

Prepare your corporate T2 tax return

Complete and file T661 Scientific Research and Experimental Development (SR&ED) Expenditures Claim with your return

Complete and file either T2SCH31 Investment Tax Credit – Corporations or Form T2038-IND Investment Tax Credit (Individuals) with your return

Complete and file T2SCH568 Ontario Business-Research Institute Tax Credit with your return

Complete and file T2SCH569 Ontario Business-Research Institute Tax Credit Contract Information with your return

Book a Consultation

“Hiring Coincide was one of the best decisions for our company. They take care of us, and we are very pleased with their service. Our claims are always well prepared, accurate, and on-time. They take the time to review the strategy with every claim. Coincide have also been very helpful in dealing with our auditors and tax authorities – allowing us to focus on our business.”

Marwan Jamous President at Strategy Point Innovations

SERVICES

Helping Your Ontario Business Maximize the SR&ED Credit

Coincide offers specialized support tailored to Ontario’s specific SR&ED claims process, from claim preparation to securing financing, ensuring a beneficial outcome for your Canadian-controlled private corporation.

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Claim Submission

Leverage Coincide’s deep understanding of Ontario’s SR&ED landscape to help you receive the maximum tax credit amount. Our assistance includes:

  • Identifying and validating eligible expenditures and projects
  • Completing support for audit defence
  • Preparing technical and financial reports
  • Providing training and support on Ontario’s SR&ED tax credits
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Financing Assistance

Following your claim submission, Coincide can help you in securing financing. Our service includes:

  • Collaborating with financial institutions to highlight your project’s eligibility for SR&ED credits
  • Assisting in project verification to enhance funding prospects
  • Facilitating quick access to bridge loans for prompt availability of funds

“A very professional and experienced team who have helped us navigate through the entire SR&ED process. They led all the upstream work required for our submission (technical report write up, financial form completion, periodic follow ups during the year) and also assisted with CRA’s follow up meetings and audits. With the help of Coincide, our SR&ED claims have, so far, been accepted as filed. ”

Patrick Normand Director at VJO Canada

OUR PROCESS

Steps to Getting Your Ontario SR&ED Tax Credit With Coincide

01. Book a Consultation

Discuss your project details with our SR&ED specialists to evaluate its eligibility for the tax credit. Once we confirm eligible expenses, we will initiate the claim process.

02. We Create a Master Service Agreement

We create a Master Service Agreement detailing our collaboration and the scope of services provided. This agreement clarifies our role and strengthens our commitment to maximizing your SR&ED tax credit.

03. Put The Claim Together

Our team will thoroughly review your project’s relevant records and data, such as payroll records and purchase receipts. Using this data, we will compile a detailed claim to ensure a smooth filing process.

04. Submit Forms

Coincide will prepare and provide all required documentation to your accountant, adhering to both federal and Ontario-specific tax filing guidelines. Your accountant will use these forms, including the T661 form, for corporate filing.

05. Get Financing Support

If immediate access to your tax credit is required, we can coordinate with your financial institution to arrange a bridge loan prior to the government disbursing your SR&ED credit.

06. Receive Your SR&ED Tax Credit

Once approved by the Canada Revenue Agency (CRA), expect to receive your SR&ED tax credit cheque within 60 business days.

Book a Consultation

“Coincide has been our trusted SRED partner for years. The team has always been there to support us with our submissions. For a group of researchers, having someone like Coincide to rely on is key – they worry about the SRED claim which allows us to focus on drug development.”

Sharon Garcia Director at PeriScope Research

WHY CHOOSE US

We “Coincide” Our Business Values With Yours.

Coincide is a leading consulting firm committed to helping Ontario’s small and medium-sized enterprises maximize tax benefits through the Scientific Research and Experimental Development (SR&ED) program.

SR&ED Consultants With Over 15 Years of Tax Credit Success

With over 15 years of success in the SR&ED arena, we have consistently delivered expert guidance across diverse sectors, including tech startups and health sciences, ensuring our clients achieve the highest possible returns from their SR&ED claims.

Help You Maximize Your Claim

Our deep understanding of SR&ED regulations and what qualifies as an eligible expenditure allows us to help you secure the most advantageous tax credit. Our thorough and precise approach guarantees that every claim is finely tuned to capture the greatest financial benefit.

We Have a Network of Reliable Contacts

Coincide can connect you with an established network of financial and governmental contacts if you face any uncertainties during your claim process. This proactive step greatly increases the likelihood of receiving SR&ED tax credits, providing peace of mind and added support where needed.

DO YOU QUALIFY? Start Your Ontario SR&ED Tax Credit Journey Today

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FREQUENTLY ASKED QUESTIONS

What can be claimed on Ontario SR&ED?

Ontario businesses can claim a variety of expenses that are used directly for SR&ED projects, including: 

  • Salaries and wages (including contract payments) 
  • Contract expenditures for work performed on your behalf by third parties in direct support of your SR&ED projects

Expenditures that cannot be claimed include:

  • Lease costs of equipment used for SR&ED
  • Capital expenditures
  • Expenditures on shared-use equipment

When we review your SR&ED project, we will determine exactly what constitutes an eligible expenditure to ensure you get the most out of the Ontario SR&ED tax benefit.

Are SR&ED Tax Credits part of a government assistance grant program?

The SR&ED program operates as a tax credit system, offering partial reimbursement for specific expenses that your company has already incurred during scientific research and development. This differs from grants, which provide funding upfront.

What is the income limit for the Ontario SR&ED tax credit?

There is a limit of $3 million of qualified expenditures for corporations claiming the SR&ED tax credit under the OITC.

How do I record my SR&ED benefit?

To properly record your SR&ED benefit for accounting purposes, you need to:

  1. Determine which SR&ED tax credits apply to your expenses—whether it’s OITC, ORDTC, or OBRITC.
  2. Distinguish between refundable and non-refundable credits. Refundable credits should be recorded as income once they are reasonably assured and can be reliably estimated, which typically occurs when the SR&ED claim is filed. Non-refundable credits should be applied against income tax expense.
  3. Document the credits. For refundable credits, record the credit amount as a receivable in your financial statements if you expect to receive the cash within the year. If it’s non-refundable, reduce your income tax expense by the amount of the credit.
  4. Ensure your SR&ED project complies with the applicable financial reporting framework, such as IFRS or ASPE. This includes adequate disclosure of the benefits’ nature, the accounting policies applied, and the impact on your financial statements.

When you work with Coincide, we will streamline this process for you and help you navigate the intricacies of recording these benefits according to the latest standards and regulations as well as tax laws.

Do I have to use the Ontario SR&ED tax credit in the same year it is claimed, or can it be carried over?

For the Ontario Innovation Tax Credit (OITC) and the Ontario Business Research Institute Tax Credit (OBRITC), any credits that exceed your tax liability will be refunded; however, these credits cannot be carried forward to future tax years.

If you use the Research and Development Tax Credit (ORDTC), it can be carried back three years to reduce Ontario corporate income tax payable and can be carried forward for 20 years.