49 (1) In this section, “adjusted gross federal investment tax credit” means, in respect of a corporation at the end of a taxation year, the sum of all amounts each of which would be determined in respect of the corporation under paragraph (a.1), (b), (c), (e), (e.1) or (e.2) of the definition of  “investment tax credit” in subsection 127 (9) of the Federal Act at the end of the year in respect of qualified Ontario SR & ED expenditures if every amount added under paragraph (c), (e), (e.1) or (e.2) of that definition in respect of taxation years following the year or in respect of taxation years ending before the time control of the corporation was last acquired by a person or group of persons were not taken into account; (“crédit d’impôt à l’investissement fédéral brut rajusté”) “federal current SR & ED deficit” means, in respect of a corporation for a taxation year, the amount, if any, that would be the amount by which the total of the amounts determined in respect of the corporation for the year under paragraphs 37 (1) (d) and (e) of the Federal Act exceeds the total of the amounts determined in respect of the corporation for the year under paragraphs 37 (1) (a), (b), (c) and (c.2) of the Federal Act if all amounts determined under those paragraphs for preceding taxation years were not taken into account; (“déficit de l’année au titre de la recherche et du développement selon les règles fédérales”) “federal current SR & ED limit” means, in respect of a corporation for a taxation year,  the amount, if any, that would be the amount by which the sum of the amounts determined in respect of the corporation for the year under paragraphs 37 (1) (a), (b), (c) and (c.2) of the Federal Act exceeds the sum of the amounts determined in respect of the corporation for the year under paragraphs 37 (1) (d) and (e) of the Federal Act if all amounts determined under those paragraphs for preceding taxation years were not taken into account; (“plafond de l’année au titre de la recherche et du développement selon les règles fédérales”) “qualified Ontario SR & ED expenditure” means a qualified Ontario SR & ED expenditure for the purposes of section 11.2 of the Corporations Tax Act. (“dépense admissible de recherche et de développement en Ontario”)  2007, c. 11, Sched. A, s. 49 (1). Post-2008 SR & ED balance (2) For the purposes of clause 48 (3) (a), a corporation’s post-2008 SR & ED balance at the end of a taxation year is the amount calculated using the formula, (A + B ) × 0.14 × C in which, “A” is, (a) if the year ends before January 1, 2016, the amount, if any, by which the amount deducted under subsection 37 (1) of the Federal Act in computing the corporation’s income for the year exceeds the corporation’s cumulative post-2008 SR & ED limit at the end of the year, or (b) in any other case, the amount deducted under subsection 37 (1) of the Federal Act in computing the corporation’s income for the year, “B” is the corporation’s federal current SR & ED deficit for the year, and “C” is the corporation’s relevant Ontario allocation factor. 2007, c. 11, Sched. A, s. 49 (2). Cumulative post-2008 SR & ED limit (3) For the purposes of subsection (2), a corporation’s cumulative post-2008 SR & ED limit at the end of a taxation year is the amount, if any, by which the sum of all amounts each of which is the corporation’s federal current SR & ED limit for the year or a preceding taxation year ending after December 31, 2008 exceeds the amount determined by the formula, D – ((E – F)/(C × 0.14)) in which, “C” is the corporation’s relevant Ontario allocation factor, “D” is the sum of all amounts each of which is deducted under subsection 37 (1) of the Federal Act in computing the corporation’s income for a preceding taxation year ending after December 31, 2008, “E” is the sum of all amounts determined under subsection 48 (3) in respect of the corporation for a preceding taxation year, and “F” is the portion, if any, of the value of “E” that may reasonably be considered to be attributable to the value of “B” in subsection (2). 2007, c. 11, Sched. A, s. 49 (3). Federal SR & ED transitional balance (4) For the purposes of clause 48 (3) (b), a corporation’s federal SR & ED transitional balance at a particular time is the amount calculated using the formula, (0.14 × C × G) + H – I in which, “C” is the corporation’s relevant Ontario allocation factor, “G” is, (a) the lesser of the amounts determined as “I.2” and “I.3” in clause (b) of the definition of “I” in paragraph 1 of subsection 48 (4) in respect of the corporation, if the corporation makes an election referred to in clause (b) of that definition, or (b) nil, in any other case, “H” is the sum of all amounts each of which is required by subsection 51 (1) to be added in computing the corporation’s federal SR & ED transitional balance at or before the particular time, and “I” is the sum of all amounts each of which is determined under subsection 48 (3) in respect of the corporation for a taxation year ending before the particular time. 2007, c. 11, Sched. A, s. 49 (4). Relevant Ontario allocation factor (5) For the purposes of this section, the relevant Ontario allocation factor of a corporation is the greatest of, (a) the corporation’s Ontario allocation factor for its taxation year that includes its transition time; (b) the corporation’s Ontario allocation factor for the taxation year ending in 2006, 2007 or 2008 for which the corporation had the greatest Ontario allocation factor; and (c) the greatest of all amounts each of which is the weighted Ontario allocation factor for 2006, 2007 or 2008 of the corporation and every corporation, if any, that is a designated corporation with respect to it.  2007, c. 11, Sched. A, s. 49 (5); 2008, c. 7, Sched. S, s. 11 (1). Exception (5.1) Despite subsection (5), if a corporation does not have a taxation year that includes the beginning of 2009, its relevant Ontario allocation factor is its Ontario allocation factor for its first taxation year ending after December 31, 2008.  2008, c. 7, Sched. S, s. 11 (2). Weighted Ontario allocation factor (6) For the purposes of clause (5) (c), the weighted Ontario allocation factor of two or more corporations for a calendar year is the total of all amounts each of which is calculated in respect of each corporation using the formula, J × K/L in which, “J” is equal to an Ontario allocation factor of the corporation for a taxation year ending in the calendar year, “K” is equal to the sum of, (a) the total qualified Ontario SR & ED expenditures incurred by the corporation in that taxation year, and (b) the total of all amounts each of which is the corporation’s share of qualified Ontario SR & ED expenditures incurred by a partnership in a fiscal period ending in that taxation year, and “L” is the sum of the amounts of “K” for each of the corporations determined under this subsection. 2007, c. 11, Sched. A, s. 49 (6). Adjusted Ontario SR & ED incentive balance (7) For the purposes of clause (b) of the definition of “W” in paragraph 1 of subsection 48 (6), a corporation’s adjusted Ontario SR & ED incentive balance at the end of a taxation year is the amount calculated using the formula, (M – N – P)/C in which, “M” is equal to the corporation’s adjusted gross federal investment tax credit at the end of the year, “N” is the amount, if any, by which “Q” exceeds “R” where, “Q” is the amount, if any, by which the corporation’s adjusted gross federal investment tax credit at the end of the year exceeds the amount that would be the corporation’s adjusted gross federal investment tax credit at the end of the following taxation year if the definition of “investment tax credit” in subsection 127 (9) of the Federal Act were read, (a) without reference to paragraph (a.1), (b) without reference to the words “at the end of the year or” in paragraph (e), (c) without reference to the words “in the year or” in paragraph (e.1), and (d) without reference to the words “in the year or” in paragraph (e.2), and “R” is the sum of, (a) all amounts deducted by the corporation under subsection 127 (5) or (6) of the Federal Act for the year in respect of the corporation’s adjusted gross federal investment tax credit at the end of the year, and (b) all amounts deemed to have been deducted by the corporation under subsection 127 (5) of the Federal Act for the year by operation of subsection 127.1 (3) of the Federal Act in respect of the corporation’s adjusted gross federal investment tax credit at the end of the year, “P” is the sum of, (a) all amounts deducted by the corporation under subsection 127 (5) or (6) of the Federal Act for a previous taxation year in respect of the corporation’s adjusted gross federal investment tax credit at the end of the year, and (b) all amounts deemed to have been deducted by the corporation under subsection 127 (5) of the Federal Act for a previous taxation year by operation of subsection 127.1 (3) of the Federal Act in respect of the corporation’s adjusted gross federal investment tax credit at the end of the year, and “C” is the corporation’s relevant Ontario allocation factor. 2007, c. 11, Sched. A, s. 49 (7). Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 11 (1, 2) - 01/01/2008