ITC Calculator

Inputs

SR&ED Salaries ($CAD)

Contractors ($CAD)

Materials ($CAD)

Arm's-length (80%%) CCPC Ontario (OITC)

Proxy: 55% × salaries · Enhanced limit: $6M (Budget 2025) · OITC: full qualified base

Results

Qualified expenditures

—

Federal 35%% refundable —

Ontario OITC 8%% refundable —

Total Refundable

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3-Year Pro-Forma

	Y1	Y2	Y3

Fee = 20%% of both entities

How this works

Proxy method (55%%): Adds 55%% of SR&ED salaries as overhead allowance. Simpler than traditional method, lower audit risk.

$6M enhanced limit (Budget 2025): Raised from $3M per Royal Assent. Source: canada.ca/sred-updates.

Ontario OITC — no grind-down: Per ontario.ca, federal SR&ED ITC is NOT government assistance for OITC purposes. Your OITC base equals your full qualified expenditures.

Specified employee salary cap: If you own more than 10%% of shares, verify the cap formula with your accountant (tied to YMPE).

Taxable capital phase-out: If taxable capital exceeds $15M, the $6M enhanced limit is reduced linearly to zero at $75M. This calculator does not model that phase-out — verify with your accountant if applicable.