A note on the Ontario Regional Opportunities Investment Tax Credit,
• 10% refundable tax credit for certain corporations that invest between $50,001 and $500,000 to construct, renovate or acquire eligible commercial and industrial buildings (or other structures) that become available to be used in the business after March 24, 2020. Residential buildings are not eligible for this tax credit, as well as the portion allocated to land. Further, the 2021 Ontario Budget announced a temporary enhancement to the ROITC to provide an additional 10% (total of 20% between $50,001 and $500,000) during the March 24, 2021 to December 31, 2022 period.
• Expenditures incurred after the taxation year in which the property first becomes available to be used in the business will not qualify for the ROITC or temporary enhancement.
• When both the ROITC and the temporary enhancement are being claimed, the maximum credit is $90,000 per year (($500,000 – $50,000) x 20%). The credit is claimed when filing the corporate income tax return, by completing schedule 570, and must be shared among an associated group of corporations. Where a claim is made, each of the other corporations in the associated group must waive its right, in writing, to claim the ROITC.
• The claiming corporation must be a CCPC and have a permanent establishment in Ontario.
• Regardless of the location of the business or head office, the physical property must be located in certain designated regions (including the County of Elgin together with the City of St. Thomas, the County of Oxford and the County of Middlesex with the City of London). A full list of regions can be found on the Ontario government website (https://www.fin.gov.on.ca/en/bulletins/roitc/index.html).
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