University of Waterloo

Tax credits and incentives: Central Canada

Funding for small businesses

Check out all the tax credits and incentives available in Ontario and Quebec.

Information last updated: June 1, 2020

Ontario Innovation Tax Credit
8 - 10% refundable tax credit

Amount:	8 - 10% refundable tax credit, up to $240,000 - $300,000 per year
Who can apply (eligibility):	Corporations in Ontario that carry out scientific research and experimental development can claim qualified expenditures, including expenses related to a co-op student.
How to apply:	Corporations can claim the tax credit on Schedule 556 and file it with their T2 corporation income tax return. Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year

Ontario Film and Television Tax Credit
35 - 50% tax credits

Amount:	35 - 40% in tax credits for eligible labour expenditures (which may include the salaries of co-op students) depending on whether the eligible production is a first-time production, a small first-time production or other than a first-time production.
Who can apply (eligibility):	You can get a certificate of eligibility from the Ontario Media Development Corporation. To be eligible for the credit, a corporation must meet certain criteria, including all of the following: be a Canadian-controlled corporation throughout the tax year as determined under sections 26 to 28 of the Investment Canada Act have a permanent establishment in Ontario throughout the tax year be primarily engaged in the carrying on of a Canadian film or video production business through a permanent establishment in Canada in the tax year not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario) or Part I of the federal Income Tax Act for the tax year not be controlled, at any time in the tax year, directly or indirectly, in any way, by one or more persons, all or part of whose taxable income was exempt from tax under Part I of the federal Income Tax Act not be a prescribed labour-sponsored venture capital corporation at any time in the tax year Visit the Government of Canada website for more information.
How to apply:	Visit the Government of Canada website for application details.
Application deadline:	Tax season each year

Quebec Tax Credit for Scientific Research and Experimental Development (R&D)
Amounts vary

Amount:	Amounts vary
Who can apply (eligibility):	Corporations that carry on a business in Canada and conduct scientific research or experimental development (R&D) in Québec, or that has such work carried out on its behalf in Québec.
How to apply:	Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year

Quebec Tax Credit for On-the-Job Training
24 - 50% tax credit

Amount:	24 - 50% tax credit for eligible expenses
Who can apply (eligibility):	Corporations that carry on a business in Canada and conduct scientific research or experimental development (R&D) in Québec or that has such work carried out on its behalf in Québec.
How to apply:	Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year

Quebec Gaspésie and Maritime Regions Tax Credit
15 - 30% tax credit

Amount:	30% for marine biotechnology, mariculture and recreational and tourism activities. 15% for all other eligible activities.
Who can apply (eligibility):	See the website for eligibility based on region.
How to apply:	Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year

Quebec Development of E-Business Tax Credit
30% tax credit

Amount:	30% up to $25,000 per year
Who can apply (eligibility):	Your corporation may be eligible if the activities it carries out are primarily in the fields of information system design or software publishing and they are carried out in an establishment in Québec.
How to apply:	Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year

Quebec Production of Multimedia Titles Tax Credit
37.5% tax credit

Amount:	37.5% of eligible labour expenditures
Who can apply (eligibility):	Your corporation may be eligible if it has an establishment in Québec and produces eligible multimedia titles.
How to apply:	Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year

Quebec Resources Regions Tax Credit
Amounts vary

Amount:	Varies based on region
Who can apply (eligibility):	A corporation that has an establishment in a resource region and carries out an eligible business there, see website for eligible regions.
How to apply:	Learn more about the forms you need to submit on the government website.
Application deadline:	Tax season each year