97.1 (1) A corporation that is a qualifying corporation and that complies with the requirements of this section may claim an amount for the taxation year in respect of and not exceeding the corporation’s regional opportunities investment tax credit for the year. 2020, c. 5, Sched. 7, s. 3. Amount of tax credit (2) The amount of a qualifying corporation’s regional opportunities investment tax credit for a taxation year is the sum of the amounts determined under the following paragraphs: 1. The amount equal to 10 per cent of the lesser of the following: i. The amount calculated using the formula, A/365 × $450,000 in which, “A” is the number of days in the taxation year. ii. The amount calculated using the formula, (B/365 × C) + D in which, “B” is the number of days in the taxation year, “C” is the lesser of $450,000 and the amount of the corporation’s eligible expenditures in the taxation year that exceeds $50,000, and “D” is the amount of the corporation’s unclaimed expenditure balance for the taxation year, if any, as determined under subsection (5). 2. The amount equal to 10 per cent of the lesser of the following: i. The amount calculated using the formula, E/365 × $450,000 in which, “E” is the number of days in the taxation year. ii. The amount calculated using the formula, (F/365 × G) + H in which, “F” is the number of days in the taxation year, “G” is the lesser of $450,000 and the amount of the corporation’s special expenditures in the taxation year that exceeds the amount determined by the formula, $50,000 – I in which, “I”  is the lesser of $50,000 and the sum of the eligible expenditures in respect of property that is considered to have become available for use in the taxation year and before March 24, 2021, and “H”  is the amount of the corporation’s unclaimed expenditure balance in respect of the property, if any, as determined under subsection (5.1). 2021, c. 8, Sched. 10, s. 2 (1). Qualifying corporation (3) A corporation is a qualifying corporation for a taxation year for the purposes of this section if, (a) it is a Canadian-controlled private corporation throughout the taxation year; (b) it is not exempt from tax for the taxation year under Part III; and (c) it carries on business in Ontario in the taxation year through a permanent establishment in Ontario. 2020, c. 5, Sched. 7, s. 3. Eligible expenditure (4) An expenditure incurred by a corporation is an eligible expenditure of the corporation for the purposes of this section if, (a) the expenditure is incurred by the corporation, (i) in the taxation year or a preceding taxation year in respect of the acquisition of eligible property, (ii) at a time when the corporation has a permanent establishment in Ontario, (iii) at a time when the corporation was a qualifying corporation; and (b) at the end of the taxation year in which the property is considered to have become available for use by the corporation, the expenditure is part of the capital cost of the property to the corporation. 2020, c. 5, Sched. 7, s. 3; 2021, c. 8, Sched. 10, s. 2 (2). Special expenditure (4.1) An expenditure is a special expenditure for the purposes of this section if the expenditure is an eligible expenditure in the taxation year and the expenditure is in respect of property that is considered to have become available for use during the period that commences on March 24, 2021 and ends on December 31, 2023. 2021, c. 8, Sched. 10, s. 2 (3); 2022, c. 17, Sched. 5, s. 4. Unclaimed expenditure balance (5) For the purposes of the definition of “D” in subparagraph 1 ii of subsection (2), the unclaimed expenditure balance of a qualifying corporation for a taxation year is the total of all amounts, if any, determined under subsection (6) in respect of a short year that commenced less than 365 days before the taxation year. 2020, c. 5, Sched. 7, s. 3; 2021, c. 8, Sched. 10, s. 2 (4). Same, special expenditures (5.1) For the purposes of the definition of “H” in subparagraph 2 ii of subsection (2), the unclaimed expenditure balance of a qualifying corporation for a taxation year is the total of all amounts, if any, determined under subsection (6) in respect of a short year that commenced less than 365 days before the taxation year if the reference to “eligible expenditures” in subsection (6) were read as a reference to “special expenditures”. 2021, c. 8, Sched. 10, s. 2 (5). Same (6) For the purposes of subsections (5) and (5.1), an amount in respect of a short year is the amount calculated using the formula, J × K in which, “J” is the lesser of $450,000 and the amount of eligible expenditures in the short year that exceeds $50,000, and “K” is the lesser of, (a) the amount calculated using the formula, (365 – L)/365 in which, “L” is the number of days in the period that commences on the first day of the short year and ends on the day before the commencement of the taxation year, and (b) the amount determined by dividing the number of days in the taxation year by 365. 2020, c. 5, Sched. 7, s. 3; 2021, c. 8, Sched. 10, s. 2 (6). Associated corporations (7) Despite subsections (1) and (2), the regional opportunities investment tax credit for a qualifying corporation that is associated with one or more other corporations during a particular taxation year is nil unless each of the other corporations has agreed in writing to waive its right to claim a credit under this section for any taxation year of the other corporation that overlaps with the particular taxation year and the waiver has been filed with the Ontario Minister. 2020, c. 5, Sched. 7, s. 3. Amalgamation (8) Despite any other provision of this section, a qualifying corporation formed as a result of the amalgamation of two or more predecessor corporations shall not claim a credit under this section for any expenditure incurred in respect of eligible property by a predecessor corporation that was not a qualifying corporation at the time the expenditure was incurred. 2020, c. 5, Sched. 7, s. 3. Expenditure under a contract (9) If a corporation incurs an expenditure in respect of eligible property under a contract with a person or partnership with which the corporation does not deal at arm’s length at the time the expenditure was incurred or at the time the contract was entered into, the expenditure shall not be included in the corporation’s eligible expenditures in respect of the eligible property. 2020, c. 5, Sched. 7, s. 3. Exceptions re eligible property (10) Despite subsections (1) and (2), no credit shall be allowed in respect of property that would otherwise be eligible property, if any of the following circumstances exist: 1. The property was acquired by the corporation from a person or partnership with which the corporation did not deal at arm’s length. 2. The property was acquired in circumstances where the property was previously owned by the corporation or by a person or partnership with which the corporation was not dealing at arm’s length at any time when the property was owned or acquired by the person or partnership. 3. The property was acquired from a person or partnership, i. who has a right or option to acquire all or part of the property in the future, or ii. who has granted a right or option to any other person or partnership to acquire the property in the future. 4. The property is prescribed by the Minister of Finance for the purposes of this section. 5. The property satisfies such criteria as may be prescribed by the Minister of Finance. 2020, c. 5, Sched. 7, s. 3. Review (11) The Minister of Finance shall conduct a review of the effectiveness of the regional opportunities investment tax credit not later than the third anniversary of the day the Economic and Fiscal Update Act, 2020 received Royal Assent, and not later than every third anniversary thereafter. 2020, c. 5, Sched. 7, s. 3. Qualifying region (12) Subject to subsection (13), the following is the qualifying region for the purpose of the definition of “eligible property” in subsection (14): 1. The following geographic areas named and described in Schedule 1 to Ontario Regulation 180/03 (Division of Ontario into Geographic Areas) made under the Territorial Division Act, 2002: i. Bruce. ii. Chatham-Kent. iii. Elgin. iv. Essex. v. Frontenac. vi. Grey. vii. Haliburton. viii. Hastings. ix. Huron. x. Kawartha Lakes. xi. Lambton. xii. Lanark. xiii. Leeds and Grenville. xiv. Lennox and Addington. xv. Middlesex. xvi. Northumberland. xvii. Oxford. xviii. Perth. xix. Peterborough. xx. Prescott and Russell. xxi. Prince Edward. xxii. Renfrew. xxiii. Stormont, Dundas and Glengarry. 2. The following geographic areas named and described in Schedule 2 to Ontario Regulation 180/03 (Division of Ontario into Geographic Areas) made under the Territorial Division Act, 2002: i. Algoma. ii. Cochrane. iii. Kenora. iv. Manitoulin. v. Muskoka. vi. Nipissing. vii. Parry Sound. viii. Rainy River. ix. Sudbury. x. Thunder Bay. xi. Timiskaming. 3. Any other area prescribed by the Minister of Finance. 2020, c. 5, Sched. 7, s. 3. Excluded areas (13) The Minister of Finance may prescribe any portion of land in any of the geographic areas set out in paragraph 1 or 2 of subsection (12), including the entire geographic area, to not be part of the qualifying region for the purposes of the definition of “eligible property” in subsection (14). 2020, c. 5, Sched. 7, s. 3. Definitions (14) In this section, “eligible property” means, in respect of a taxation year, property that satisfies all of the following criteria: 1. The property is capital property of the qualifying corporation that is depreciable property and, for the taxation year, i. is, subject to paragraph 2, included in Class 1 of Schedule II to the Federal regulations, or ii. is included in Class 6 of that Schedule. 2. If the property is included in Class 1 of Schedule II to the Federal regulations as a result of an election made under subsection 1103 (1) of those regulations, the property would otherwise not be included in Class 2, 3, 4, 5, 7, 8, 9, 10, 11 or 12 of that Schedule had the election not been made. 3. The property is considered to have become available for use by the qualifying corporation on or after March 25, 2020 and in the taxation year. 4. If the property is a building, or an addition or alteration to a building, at least 90 per cent of the floor space of the building is used at the end of the taxation year for a non-residential use. 5. The property is located wholly within the qualifying region at the time the property is considered to have become available for use by the qualifying corporation. 6. The property satisfies such other criteria as may be prescribed by the Minister of Finance; (“bien admissible”) “short year” means a taxation year of a qualifying corporation where the year is less than 365 days and the corporation claimed a regional opportunities investment tax credit. (“exercice court”) 2020, c. 5, Sched. 7, s. 3; 2021, c. 8, Sched. 10, s. 2 (7). Available for use (15) For the purposes of this section, a property is considered to have become available for use at the time the property is considered to have become available for use under subsection 13 (26) of the Federal Act. 2020, c. 5, Sched. 7, s. 3; 2021, c. 8, Sched. 10, s. 2 (7). Interpretation, capital cost (16) For the purposes of this section, capital cost is determined under the Federal Act, except that a credit claimed under this section or section 97.2 that would otherwise be government assistance for the purposes of determining capital cost under the Federal Act shall be deemed not to be government assistance and shall not reduce the capital cost. 2023, c. 8, Sched. 9, s. 6. Section Amendments with date in force (d/m/y) 2020, c. 5, Sched. 7, s. 3 - 25/03/2020 2021, c. 8, Sched. 10, s. 2 (1-7) - 27/04/2021 2022, c. 17, Sched. 5, s. 4 - 08/09/2022 2023, c. 8, Sched. 9, s. 6 - 18/05/2023