The regional opportunities investment tax credit is a tax deductible available to Ontario corporations who invest or acquire new property during a taxable year. This tax credit promotes the economic and employment growth of industries in regional parts of Ontario.
How much is the Ontario regional opportunities investment tax credit?
The Ontario regional opportunities investment tax credit is a 10% refundable credit for eligible corporations. This tax credit is available to expenditures that are over $50,000 and up to $500,000 during the taxable year.
This credit rate has been temporarily increased to 20% for all corporate properties that have come into operation between March 23, 2021, and January 31, 2024.
Ontario regional opportunities investment tax credit eligibility
To be eligible for the Ontario regional opportunities investment tax credit, your business must be a corporation with a permanent address in Ontario.
All eligible properties or construction of a building for expansion must be at least 90% commercially classed and must be located within an assigned regional area.
How to claim the regional opportunities investment tax credit
To claim the regional opportunities investment tax credit, you must file your T2 corporate income tax return with Schedules 570 and 5.
Schedule 570
Schedule 570 is the Ontario regional opportunities investment tax credit form that allows you to claim your acquisition of eligible property during your taxable year. You do so by claiming the total capital cost in acquiring or constructing new property in one of the eligible regions of Ontario.
Schedule 5
Schedule 5 is the form that you must include in your T2 tax return to claim any property locations and permanent addresses in Canada. Using line 472, you can indicate the amount of total tax owing because of purchasing eligible property.
Call on the tax experts of T2inc for your T2 corporate tax return
If you are an Ontario corporation investing in properties within the province, there are tax credits available to you. To invest in the economic and employment growth of regional areas in Ontario has benefits for businesses during tax season.
Call on the experts at T2inc Ontario for your T2 corporate tax return assessment. Contact us today to get a simple and hassle-free solution for your next tax filing.
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
