| Federal and Ontario R&D Tax Incentives |
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| 1) For R&D expenditures of up to
$2 million incurred annually by Canadian-controlled private companies
with prior year’s taxable income and taxable capital among
associated group not in excess of $300,000 and $10 million, respectively.
The $2 million expenditure limit is eroded where taxable income is
between $300,000 and $500,000, or where taxable capital is between
$10 million and $15 million. Where taxable income or taxable capital
exceeds $500,000 or $15 million, respectively, the tax credit rate
is reduced to 20%. 2) Eligible expenditures for the Ontario tax credit are reduced when taxable income or taxable capital for the preceding year exceeds $200,000 or $25 million, respectively. The credit is eliminated when taxable income or capital exceed $400,000 or $50 million, respectively. |
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