Enhancing the Regional Opportunities Investment Tax CreditApril 21, 2021
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 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.
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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