88 /
Notes, continued
(6) In Ontario, an eligible research institute contract is an R&D contract with an eligible
research institute (i.e., certain post-secondary and hospital research institutions, and
prescribed non-profit research organizations). Eligible expenditures, as defined for federal
ITC purposes, are limited to $20 million per year.
(7) Eligible expenditures in Ontario are those that qualify for federal ITC purposes. The credit is
non-refundable and is applicable for taxation years ending after 2008. Unused credits may
be carried forward 20 years and carried back three years (but only back to taxation years
ending after 2008).
(8) In Québec, eligible entities include universities, public research centres, and private
research consortiums. These entities must carry on business in Canada and perform R&D
in Québec, or have such work carried out on their behalf in Québec. An advance ruling
from the Québec Ministry of Revenue is required in order to qualify. Claimants no longer
need to have a permanent establishment in Québec.
Other types of eligible payments include expenditures in respect of pre-competitive
research projects. An advance ruling from the Québec Ministry of Revenue is required in
order to qualify. Claimants no longer need to have a permanent establishment in Québec.
(9) In Québec, to be eligible for the 37.5% rate in respect of a maximum of $3 million in
qualifying expenditures, the Canadian-controlled corporation must have less than $50
million in assets on an associated worldwide basis in the preceding year. For corporations
with assets between $50 million and $75 million, this rate is proportionally reduced to
17.5%. The limit must be shared by associated corporations.
For eligible biopharmaceutical corporations, also see note 10 below.
The credit reduces eligible expenditures for federal purposes. Following the 2013 Québec
budget (delivered on November 20, 2012), the credit is now taxable in Québec.
Provincial Research and Development Tax Incentives
Current as of May 3, 2013
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