11.2 (1) In this section, “Federal Act” means the Income Tax Act
(Canada);  (“loi fédérale”) “investment tax credit amount” means, in respect of a corporation for a taxation year, an amount deducted by the corporation for a prior taxation year under subsection 127 (5) or (6) of the Federal Act; (“crédit d’impôt à l’investissement”) “Ontario allocation factor” has the meaning given to that expression by subsection 12 (1); (“coefficient de répartition de l’Ontario”) “qualified Ontario SR & ED expenditure” means, (a) a qualified expenditure within the meaning of subsection 12 (1) that is made or incurred by a corporation in a specified taxation year or in the taxation year immediately preceding the first specified taxation year of the corporation, or (b) an expenditure made or incurred by a partnership in a fiscal period that ends in a specified taxation year of a corporation if, (i) the corporation is a member of the partnership at any time in the specified taxation year, and (ii) the expenditure would be a qualified expenditure within the meaning of subsection 12 (1) if it were made by a corporation; (“dépense admissible de recherche et de développement en Ontario”) “specified taxation year” means, in respect of a corporation, a taxation year of the corporation that commences after February 29, 2000 and ends before January 1, 2009. (“année d’imposition déterminée”)  2001, c. 23, s. 23; 2004, c. 16, s. 2 (2); 2007, c. 11, Sched. B, s. 2 (4). Exception, specified taxation year (2) Despite the definition of “specified taxation year” in subsection (1), a corporation’s first specified taxation year for the purposes of this section is its first taxation year commencing after December 31, 2000, if its first taxation year that commences after February 29, 2000 ends before January 1, 2001.  2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Rule, deduction under s. 37 (1) of the Federal Act (3) If a corporation includes, under paragraph 37 (1) (e) of the Federal Act, an investment tax credit amount in determining the amount otherwise deductible under this Act for a specified taxation year, the corporation may increase the amount of its deduction for the specified taxation year under subsection 37 (1) of the Federal Act, as it applies for the purposes of this Act, by the amount calculated using the formula, A/B in which, “A” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Rule, capital cost (4) If a corporation includes an investment tax credit amount in a specified taxation year under paragraph 13 (7.1) (e) of the Federal Act in determining the capital cost to the corporation of depreciable property for the purposes of this Act, the corporation may add, in determining the capital cost of the property, despite subsection 13 (7.1) of the Federal Act as it applies for the purposes of this Act, the amount calculated using the formula, C/B in which, “C” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Rule, undepreciated capital cost (5) If a corporation includes an investment tax credit amount in a specified taxation year in determining the amount of the variable “I” in the formula in the definition of “undepreciated capital cost” in subsection 13 (21) of the Federal Act in calculating the amount of the undepreciated capital cost to the corporation of depreciable property, the corporation may add, in determining the amount of the undepreciated capital cost for the purposes of this Act, the amount calculated using the formula, D/B in which, “D” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Rule, adjusted cost base of partnership interest (6) If a corporation includes an investment tax credit amount in a specified taxation year under subparagraph 53 (2) (c) (vi) of the Federal Act in computing the adjusted cost base to the corporation of property that is an interest in a partnership, the corporation may add, in determining the adjusted cost base of the property for the purposes of this Act, the amount calculated using the formula, E/B in which, “E” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Same (7) If a corporation includes an investment tax credit amount in a specified taxation year under subparagraph 53 (1) (e) (xiii) of the Federal Act in computing the adjusted cost base to the corporation of property that is an interest in a partnership, the corporation shall deduct, in determining the adjusted cost base of the property for the purposes of this Act, the amount calculated using the formula, F/B in which, “F” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Rule, inclusion in income (8) If a corporation includes an investment tax credit amount under paragraph 37 (1) (c.2) of the Federal Act in determining the amount of a deduction under subsection 37 (1) of that Act for a specified taxation year and the amount can reasonably be considered to relate to qualified Ontario SR & ED expenditures to acquire a property that were made or incurred by the corporation and were previously subject to the application of subsection (4) because the expenditures are related to an amount included under paragraph 37 (1) (b) of that Act in a deduction under subsection 37 (1) of that Act for a prior taxation year, the corporation shall include, in computing its income for the purposes of this Act for the specified taxation year, an amount calculated using the formula, G/B in which, “G” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and “B” is the Ontario allocation factor of the corporation for the year in which the property was last acquired by the corporation. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Exception (9) If the corporation is not subject to any of the rules set out in subsections (3) to (7) for a specified taxation year and includes an investment tax credit amount in computing its income for the purposes of this Act for the year, the corporation may deduct, in computing its income for the year, the amount calculated using the formula, G/B in which, “G” is the part of that investment tax credit amount that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the corporation, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Partnerships (10) If a corporation is a member of a partnership in a specified taxation year and adds an amount under subsection 127 (8) of the Federal Act in computing the amount the corporation may deduct under subsection 127 (5) or (6) of the Federal Act for the year, the corporation may deduct, in computing its income for the year, the amount calculated using the formula, H/B in which, “H” is the portion of the amount, if any, included under subsection 127 (8) of the Federal Act in computing the amount of the deduction under subsection 127 (5) or (6) of the Federal Act that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and “B” is the Ontario allocation factor of the corporation for the year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Same (11) If a partnership includes an amount under paragraph 37 (1) (c.3) of the Federal Act in determining the amount of a deduction under subsection 37 (1) of that Act for a fiscal period, and the amount is in respect of qualified Ontario SR & ED expenditures made or incurred by the partnership to acquire a property, a corporation that is a member of the partnership and that previously claimed a deduction under subsection (10) in respect of the expenditures shall include in computing its income for the specified taxation year in which the partnership’s fiscal period ends, an amount calculated using the formula, J/B in which, “J” is the corporation’s proportionate share, based on its share of the income or loss of the partnership, of the amount included under paragraph 37 (1) (c.3) of the Federal Act by the partnership that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership in respect of which the corporation claimed the deduction under subsection (10), and “B” is the Ontario allocation factor of the corporation for the specified taxation year in which the fiscal period of the partnership ends during which the property was last acquired by the partnership. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Same (12) If a partnership includes an amount previously allocated under subsection 127 (8) of the Federal Act in computing its income for the purposes of this Act for a fiscal period and the amount can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, a corporation that is a member of the partnership shall, if subsection (10) does not apply, deduct an amount in computing its income for the specified taxation year in which the partnership’s fiscal period ends that is calculated using the formula, K/B in which, “K” is the corporation’s proportionate share, based on its share of the income or loss of the partnership, of the amount allocated under subsection 127 (8) of the Federal Act that is included in the partnership’s income for the purposes of this Act that can reasonably be considered to relate to qualified Ontario SR & ED expenditures made or incurred by the partnership, and “B” is the Ontario allocation factor of the corporation for the specified taxation year. 2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Same (13) Subsection 127 (13) of the Federal Act does not apply for the purposes of this section in respect of qualified Ontario SR & ED expenditures made or incurred by a partnership.  2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Effect of transfer (13.1) For the purposes of this section, if a qualified Ontario SR & ED expenditure made or incurred by a corporation in a specified taxation year or in the taxation year preceding the first specified taxation year of a corporation is transferred to another corporation pursuant to subsection 127 (13) of the Federal Act, the amount transferred, (a) is deemed not to be a qualified Ontario SR & ED expenditure made or incurred by the transferor; and (b) is deemed to be a qualified Ontario SR & ED expenditure made or incurred by the other corporation in the other corporation’s first taxation year that ends after the specified taxation year or that preceding year, as the case may be.  2007, c. 7, Sched. 6, s. 1. Application of subs. (13.1) (13.2) Subsection (13.1) applies in respect of a qualified Ontario SR & ED expenditure made or incurred by a corporation before or after subsection (13.1) comes into force.  2007, c. 7, Sched. 6, s. 1. Prescribed rules (14) The corporation is subject to such rules as may be prescribed by the regulations instead of or in addition to the rules set out in subsections (3) to (12) for the purposes of determining the amount of its income for a specified taxation year or the amount of the capital cost, undepreciated capital cost or adjusted cost basis of its property.  2001, c. 23, s. 23; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 2001, c. 23, s. 23
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004 2007, c. 7, Sched. 6, s. 1 - 17/05/2007; 2007, c. 11, Sched. B, s. 2 (4) - 04/06/2007 Research and development super allowance