The Ontario Tax Exemption for Commercialization program supports innovation in Ontario’s economoy by promoting intellectual property developed by eligible Canadian universities and colleges. The OTEC program applies to new corporations and offers an exemption from Ontario’s corporate income tax and corporate minimum tax for the first ten taxation years of the corporation applicant. Therefore, this program is not a grant or loan but a tax incentive type program.
Who is Eligible for this Canadian Tax Incentive?
There are several criteria that make a corporation eligible for this program.
The company must be incorporated in Canada between March 24, 2008 and March 25, 2010 and can not be formed as the result of a merger. All (or most) of the applicant’s revenue must be from one or more qualified commercialization businesses, each of which is participating in one of the following: advanced health technology, bio economy, or specific telecommunications, computer or digital technologies.
The intellectual property that was commercialized and is eligible by your company was a patent issued/pending application made under the Patent Act (Canada) or copyright in a computer program that constitutes a technological advancement. Also, the intellectual property must have been developed during employment or academic study at the institute.
Learn More About OTEC Tax Incentive
More information about OTEC can be found through the Program Guide.
Before beginning the process, a company may apply to the Ministry for a preliminary non-binding determination on eligibility and qualification. For more information about this program, eligibility terms and preliminary determination, contact Mentor Works for more information with the subject line “OTEC”.