The recent Ontario Economic Update included proposed measures intended to promote capital investment including replacing existing R&D tax credits (SR&ED) with an incentive that would reward incremental R&D spending. This new credit would redirect support to incremental R&D expenditure growth, to encourage businesses to increase R&D and expand research operations in Ontario.
Ontario also proposed “pay or play” tax incentives, such as a special corporate tax
that could be eliminated or reduced through investments in new equipment or other eligible investment expenses, and a payroll tax that could be eliminated or reduced by employer investments in employee training or training programs.
