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Economic Development Office > Programs > Tax Breaks & Credits

Tax Breaks and Credits

​​​​​​​​​​​​​Apprenticeship Job Creation Tax Credit

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Contributes up to 10% of a new intern’s salary provided they are in the first 2 years of their apprenticeship, they are working towards a trade certificate, and they are working in a Red Seal Trade.

Apprenticeship Training Tax Credit

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Contributes up to $10,000 to hire and train a new intern in the skilled trades.

Cooperative Education Tax Credit

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Provides up to $3,000 tax credit to hire students enrolled in a cooperative education program in colleges and universities for up to four months. This tax credit makes it feasible for both entrepreneurs and new ventures to hire on temporary summer employees.

Computer Animation and Special Effects Tax Credit

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This tax credit is calculated as 20% of the eligible Ontario labour expenditures incurred for the creation of animation or special effects. Eligible expenditures include designing, modelling, rendering, lighting, painting, animating and compositing but do not include activities that are scientific research and experimental development.

Exporters of Processing Services Program

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The Exporters of Processing Services Program enables manufacturing service companies to import certain goods that will eventually be re-exported without paying the goods and services tax / harmonized sales tax (GST/HST).

Export Distribution Centre Program

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Under the EDCP, authorized export-oriented, non-manufacturing businesses can use a certificate to acquire or import most inventory and parts, or import a customer's goods for processing, without payment of GST/HST.

Gasoline Used in Unlicensed Business Equipment

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Do you or your business buy gasoline for unlicensed equipment, such as equipment for farming, construction or manufacturing? If yes, you may be eligible for a refund on the tax you have paid.

Ontario Book Publishing Tax Credit

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You can apply for a refundable tax credit for 30% of expenditures incurred by print or digital book publishing activities, up to a maximum of $30,000 per title.

Ontario Business Research Institute Tax Credit

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Ontario Corporations can apply for a tax credit of 20% of the costs paid for scientific research and experimental development up to a maximum of $4 million per tax year. Eligible businesses must have operated in Ontario during the tax year, have incurred qualified expenditures, and not be tax exempt.

Ontario Film and Television Tax Credit

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Businesses can apply for a refundable tax credit of up to 35% of labour expenses, or up to 40% of $240,000 in expenses for first-time producers. If the production is shot or animated outside the Greater Toronto Area, but still in Ontario, businesses can apply to receive a 10% bonus credit.

Ontario Innovation Tax Credit

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Ontario-based businesses are able to claim a 10% tax credit for scientific research and experimental development carried out in Ontario.

Ontario Interactive Digital Media Credit

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Businesses involved in digital media production, can qualify for a refundable tax credit of up to 40% of your eligible labour and marketing expenditures if they are a Canadian corporation, have a permanent establishment in Ontario, file a yearly Ontario tax return, earn less than $20 million in annual gross revenue, and create a digital media production in Ontario.

Ontario Production Services Tax Credit

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If you are a Canadian or foreign-controlled production company, you could qualify for a 25% refundable tax credit based on your eligible production expenses.

Ontario Sound Recording Tax Credit

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You may be eligible for a refundable tax credit to cover 20% of qualifying production costs for your Canadian sound recordings or music videos.

Ontario Tax Exemption for Commercialization

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New Canadian corporations that sell products that have been researched and developed at Canadian post-secondary institutions can qualify for this tax emption if they were incorporated after March 24, 2008 but before March 25, 2012, focused on health, clean energy, telecommunications, computers, or digital media technologies, and profiting mainly by commercializing new research.

Scientific Research and Experimental Development Tax Incentive Program

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Businesses that conduct industrial R&D in Canada may be eligible for a tax refund or tax credit of up to 35% of what is spent on R&D. Eligible expenses include expenses like wages, materials, machinery, equipment, some overhead and contracts related to experimental development, applied research, basic scientific research, and certain types of technical support work.

Small Business Deduction

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Businesses that are Canadian-controlled corporations could be eligible for tax deductions of up to $500,000 through the T2 Tax Form.

Tax Refund for Power Takeoff Equipment

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Power Takeoff (PTO) equipment refers to auxiliary equipment of a licensed motor vehicle that uses fuel (clear diesel fuel, gasoline and propane) from the vehicle's fuel tank(s). Examples of PTO equipment include:

    • cement mixers
    • aerial buckets, lifts and cranes
    • refrigeration unit
    power vacuums, pumps and blowers

If you paid tax on fuel used in Ontario to operate PTO equipment, you may qualify for a refund.