(COVID-19) Regional Opportunities Investment Tax Credit

To support business investment in regions of the province where employment growth has been significantly below the provincial average, Ontario is proposing a new 10 per cent refundable Corporate Income Tax credit.

About the Regional Opportunities Investment Tax Credit

The Regional Opportunities Investment Tax Credit supports business investment, economic growth and job creation in designated regions across the province that lagged in employment growth between 2009 and 2019.

It is a 10% refundable Corporate Income Tax credit for corporations that invest more than $50,000 to construct, renovate or acquire eligible commercial and industrial buildings in these regions. The Regional Opportunities Investment Tax Credit will:

• help address regional disparities by bringing greater  opportunities and prosperity to businesses, workers and families in these communities
• help attract investments, boost growth and create jobs by supporting businesses, including those that are recovering from COVID‑19, to expand and grow

The Regional Opportunities Investment Tax Credit would be available to eligible businesses that construct, renovate or acquire qualifying commercial and industrial buildings in designated regions of the province, saving them up to $45,000 in the year.

Qualifying investments

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. 

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 are:

• 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

Residential buildings are not eligible.

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