Enhancing the Regional Opportunities Investment Tax Credit

April 21, 2021
By Bob Peters

Cornwall Ontario – The 2021 Ontario Budget is proposing to temporarily double the Regional Opportunities Investment Tax Credit rate.

The Regional Opportunities Investment Tax Credit 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 Cornwall and the surrounding region. 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-19covid 19, to expand and grow

Ontario is proposing to temporarily double the Regional Opportunities Investment Tax Credit rate. The proposed enhancement would allow corporations to claim a 20 per cent credit.

Who is eligible

To be eligible, a corporation must:

  • be a Canadian-controlled private corporation throughout the tax year
  • have a permanent establishment in Ontario at the time a qualifying investment is made
  • make a qualifying investment in a designated region of the province

The corporation can be located anywhere in Ontario, but the investment must be made in a designated region to qualify for the tax credit.

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.

Additional Information

For more information, please click on the following: