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In addition to the Federal Government's SR&ED program, several provinces also offer incentives for research and development. Often the incentives are based on the SR&ED qualifying expenditures, and generally, the credit/refund is administered by CRA therefore eliminating the need to apply to two government departments. Ontario and Quebec tax credits are accessed by filing provincial tax returns of these provinces. For more information about provincial incentives, please feel free to contact one of Iwasan's consultants.

British Columbia
  • BC offers a 10% refundable tax credit on expenditures for qualifying SR&ED carried out in the province.
Ontario
  • Ontario offers an Ontario Innovation Tax Credit (OITC), a 10% refundable tax credit available to all companies that perform SR&ED in Ontario (subject to certain income and capital tests).
Quebec
  • Quebec offers a refundable credit of 17.5% to 37.5% (depending on the size of the company) on the first $2M in R&D wages and certain other expenses. Also, 28% on all expenditures for 'pre-competitive research'. Credits also apply to amounts paid to subcontractors at reduced rates under some circumstances.
Manitoba
  • Manitoba offers a 20% non-refundable income tax credit for qualifying expenditures incurred in Manitoba. Unused credits can be carried forward up to 10 years or back up to 3 years.
Saskatchewan
  • Saskatchewan offers a 15% refundable income tax credit for qualifying expenditures incurred in Saskatchewan.
New Brunswick
  • New Brunswick offers a 15% refundable income tax credit for qualifying expenditures incurred in New Brunswick.
Nova Scotia
  • Nova Scotia offers a 15% refundable tax credit for qualifying R&D expenditures incurred by a taxpayer with a permanent establishment in Nova Scotia for R&D to be carried out in Nova Scotia.
Newfoundland and Labrador
  • These provinces offer a 15% refundable tax credit for qualifying R&D expenditures incurred by a taxpayer with a permanent establishment in Newfoundland for R&D carried out in Newfoundland.
Yukon
  • Yukon offers a 15% refundable tax credit, 20% refundable if it is Yukon College doing the research.

Province Rate Refundable Available to?
New Brunswick 15% Yes All corporations
Newfoundland 15% Yes All corporations
Nova Scotia 15% Yes All corporations
Prince Edward Island 0% No Not Available
Ontario 10% Yes See note above
Quebec 17.5% or 37.5% Yes See note above
Saskatchewan 15% Yes All corporations
Manitoba 20% No All corporations
Alberta 10% Yes All corporations
British Columbia 10% Yes See note above
Yukon Territory 15% Yes All Corporations
Nunavut 0% No Not Available
Northwest Territories 0% No Not Available


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