Research and Development Support Programs. Ontario 2013

Transcription

1 Research and Development Support Programs Ontario 2013

2 Supported activities include, but are not exclusive to (1) : Type of activity Ontario programs Summary of eligible activities Federal programs Provincial tax credit Prov. direct support SOFII (FedDev On) IBI (FedDev On) TDP (FedDev On) FID (FedNor) ORDTC OBRI OITC OIDF IACP Basic research Applied research Experimental development Commercialization Proof of concept Data collection and analysis Market studies (commercial potential) Engineering and design Testing Demonstration Certification Patents, trademarks, etc. Marketing Consultant advice Productivity improvement Facility construction, improvement or lease Purchase or lease of machinery and equipment Hiring, training (1) Supported activities presented are for reference only, and are subject to change and interpretation by program officials. (2) : For some programs, detailed examples of supported activities were not available.

3 Ontario programs Ontario Research and Development Tax Credit (ORDTC) Eligible activities Level of assistance Canada Revenue and the Ontario Ministry of Finance Encourages Ontarian businesses of all sizes and in all sectors to conduct research and development (R&D) that will lead to new, improved, or technologically advanced products or processes. Only corporations that are not exempt from Ontario corporate income tax and that have no exempt income can claim the credit To qualify for the Ontario tax credit, the SR&ED activities must meet the requirements for the federal SR&ED tax credit Non-refundable tax credit of 4.5% of eligible expenditures Source: CRA and Ontario Ministry of Finance websites.

4 Ontario programs Ontario business research institute tax credit (OBRI) Level of assistance Canada Revenue and Ontario Ministry of Finance Encourages Ontario corporations to engage in R&D activities in collaboration with Ontario research institutes Corporations which: Carried on business in the tax year through a permanent establishment in Ontario Incurred qualified expenditures under an eligible contract with an eligible research institute Are not exempt from Ontario corporate income tax Refundable tax credit of 20% of qualified expenditures (to a $20 million expenditure limit) Maximum credit per year: $4 million Source: CRA and Ontario Ministry of Finance websites.

5 Ontario programs Ontario Innovation Tax Credit (OITC) Eligible activities Level of assistance Ministry of Revenue, Government of Ontario Tax credit program encouraging Ontario-based corporations to carry out research and development activities in Ontario A qualifying corporation: Has permanent establishment in Ontario Carries on SR&ED in Ontario during the year Is not exempt from tax To qualify for the OITC, the SR&ED activities must meet the requirements for the federal SR&ED tax credit The OITC is calculated as 10% of qualifying SR&ED expenses: Up to 100% of current expenses and Up to 40% of capital expenses Maximum annual credit: $300,000 (or $3 million eligible expenses) Sources: Ontario Ministry of Revenue, CRA and Canada Business Network websites.

6 Ontario programs Ontario Innovation Demonstration Fund (OIDF) Eligible activities Level of assistance Ministry of Economic Development and Innovation, Government of Ontario Supports the development and commercialization of environmental projects related to alternative energy, bio-products, hydrogen or other globally significant technology. Ontario Companies with Eligible Pilot Demonstration Projects (PDP) that will be undertaken in Ontario. Applicants must demonstrate how: The proposed PDP will provide a competitive advantage for Ontario or other significant benefits (e.g. environmental, economical, social). The proposed technology has been tested and proven to be viable, and can provide sufficient data to warrant a PDP. Upon successful completion, the technology, product or process will be commercialized in Ontario as well as moved into the global market. The technology, product or process is best in class and will lead to a globally competitive business and market opportunity. Development and design of pilot demonstration prototypes Purchase and installation of new equipment Training of skilled resources Maintenance Monitoring and evaluation Reimbursement of up to 50% of eligible costs Maximum amount: $4 million Other types of financial support such as loans are available through this program Note: Total government funding, including OIDF, cannot exceed 66% of total eligible project costs. Sources: Ontario Ministry of Economic Development and Innovation and Canada Business Network websites.

7 Ontario programs Industry-Academic Collaboration Programs (IACP) Types of programs offered: Ontario Centres of Excellence Range of innovation support programs for Ontario technology-based businesses, in collaboration with Ontario s research institutions. All recipients should have projects with strong potential for commercial success: Researchers Entrepreneurs Private companies Collaborative commercialization Talent programs Technology Transfer Partnerships Different programs help companies to finance commercialization, resolve technical problems, reduce cost of hiring skilled professionals, license innovative intellectual property, access expert advice and improve their business skills. Level of assistance Funding ranges from $6,000 to $250,000. Sources: OCE and Canada Business Network websites.

8 Ontario programs Others Eastern Ontario Development Fund Website Ministry of Economic Development and Innovation, Government of Ontario Supports incorporated, for-profit businesses with at least 10 employees or not-for-profit organizations in the target region by offering funding of up to 15% of the costs of a new expansion or an innovation project that grows workforce or local economy. Southwestern Ontario Development Fund Website Ministry of Economic Development and Innovation, Government of Ontario Supports incorporated, for-profit businesss with at least 10 employees or not-for-profit organizations in the target region by offering funding of up to 15% of the costs of a new expansion or an innovation project that grows workforce or local economy. Conservation Fund (CF, OPA) Website Ontario Power Authority Offers financing to carry out innovative energy conservation projects and develop technology. Eligible projects promote energy conservation and deliver specific outcomes that transform the market and stimulate large-scale change. Financing can go up to $100,000 for research projects, $500,000 towards demonstration project costs, and $1 million towards strategic opportunities projects costs. Source: Canada Business Network and agencies websites.