4 programs on this page
Tax credits are claimed on your tax return after you've spent the money. Your accountant is the right person to confirm what you can claim.
25% to 30% of the student's wages and agency fees, up to $3,000 per work placement.
If you hire a co-op student from an eligible Ontario college or university, you can claim part of their pay back as a tax credit. It's refundable and works for both corporations and unincorporated businesses. The most per placement is $3,000.
Government of Ontario (administered by the Canada Revenue Agency)All of Ontario
Innovation Tax Credit: 8% refundable, on up to $3 million of spending (max $240,000 a year). R&D Tax Credit: 3.5% non-refundable, no maximum stated.
These two Ontario tax credits sit on top of the federal SR&ED program. Corporations that do SR&ED in Ontario and claim the federal credit can claim them on their T2 return. One is refundable for smaller companies; the other only reduces Ontario tax owing.
Government of Ontario (administered by the Canada Revenue Agency)All of Ontario
40% of eligible Ontario labour and marketing costs for products you sell yourself; 35% of labour for products made for a client. No overall maximum is stated.
The OIDMTC is a refundable tax credit for Ontario corporations that build interactive digital products meant to entertain people or educate children under 12, such as games and kids' learning apps. It's based on Ontario labour costs, plus marketing costs for products you sell yourself. Most websites and promotional products don't qualify.
Ontario Creates and the Canada Revenue AgencyAll of Ontario
35% of qualified SR&ED spending up to $6 million a year for most Canadian-controlled private corporations (tax years starting after December 15, 2024), and 15% on spending above that
SR&ED is a federal tax credit for businesses that do research and development in Canada. You claim it with your tax return, and part or all of it can come back as a refund. Most Canadian-controlled private corporations earn the higher 35% rate on spending up to a yearly limit.
Canada Revenue AgencyAll of Canada
