The Ontario Business-Research Institute Tax Credit (OBRITC) is allowed under section 97 of the Taxation Act, 2007 (Ontario). The OBRITC is a 20% refundable tax credit based on qualified expenditures incurred in Ontario under an eligible contract with an eligible research institute (ERI). The maximum tax credit that a qualifying corporation or an associated group of corporations can claim in a tax year is $4 million (20% of $20 million). To support the OBRITC claim, the corporation must file a completed Schedule 569, Ontario Business-Research Institute Tax Credit Contract Information (Jump Code: 569) for each eligible contract.
If there is an agreement among associated corporation to allocate the $20 million expenditure limit, the filing corporation is allocated any portion of the $20 million expenditure limit that is not allocated to the associated corporations on the Schedule 9, Related and Associated Corporations Workchart (Jump Code: 9 WORKCHART). By default, the $20 million expenditure limit is allocated to the filing corporation. If you want to allocate a different percentage, change the value in the “Portion of $20 million expenditure limit allocated to this corporation” field reported on the Schedule 9 Workchart. The portion allocated to the filing corporation will adjust automatically to use or reduce any additional amount available, if needed. If the corporation is not associated, Section 3 in Schedule 568 will be empty.
Tip: For more information on the T2 Data Connection, please consult the T2 Data Connection guide, available in the Professional Centre.