Taxes & Incentives

Our city, province and country recognize that you have choices when deciding where to locate your business. While Ontario does not allow municipalities to provide cash incentives or enter into special tax agreements, all three levels of government provide specialized incentives.

London Real Estate Industrial Tax - 2010

* Tax increases on industrial properties as a result of reassessment, will be capped at 10% plus any municipal increases for 2009. In the case of property reassessments that result in tax decreases, a portion of the tax decrease is withheld to fund the cap on tax increases. This portion is determined by the clawback rate.

Corporate Taxes

Taxable income is determined by detailed calculations established under the Income Tax Act (Canada). These tables are provided as a general guide for the determination of income tax.

The combined 2011 corporate tax rates for Ontario and Canada in the manufacturing sector are 29%. This rate is lower than U.S. manufacturing regions.

The Ontario capital tax is applied to taxable capital invested in a corporation in Ontario, as determined by detailed calculations under the Corporations Tax Act (Ontario), in excess of $5 million at a rate of 0.3%. The Ontario capital tax was eliminated in 2010.

Capital tax for manufacturing and resource companies was eliminated in 2007.

Land Development

There are no development charges for industrial development in the City of London.

Brownfield Incentives

There are a substantial number of properties within the City of London that have been previously developed for industrial, commercial or other urban uses and may be contaminated as a result of these former activities. Some of these properties, which are commonly referred to as "brownfields", are vacant, under-utilized or abandoned as a result of their current environmental condition and associated liability concerns, resulting in lost property tax revenue, inefficient use of existing infrastructure and lost employment opportunities. If brownfield sites are left vacant or under-utilized, there is additional pressure placed on municipalities to extend new services and infrastructure into outlying "greenfield" locations.

The following report (available as a PDF for viewing or downloading) provides more insight into brownfields and possible incentives.
City of London Community Improvement Plan for Brownfield Incentives

Government Incentives

The governments of Ontario and Canada assist employers by providing tax incentives and wage subsidies for hiring and training including:

• The Ontario Cooperative Education Tax Credit for employers consists of a tax credit for 10% of salary or wage to a maximum of C$1,000 per three month work placement for students in cooperative education or leading edge technology programs. Click here for detailed information.
• The National Research Council (NRC)/Industrial Research Assistance Program (IRAP) provides a wage subsidy which enables technology based SMEs to hire recent graduates for six months and use their skills to help develop their company's technology.
• The Ontario Job Connect program provides a wage subsidy to enable employers to hire and provide on-the-job-training. This program is provided by the Ontario Ministry of Training, Colleges and Universities.
• The Federal Targeted Wage Subsidy program provides wage subsidy for up to one year (maximum 60% of wages paid) to hire individuals re-entering the workforce.
• Ontario Employer Health Tax exemption provides eligible employers exemption from paying Employer Health Tax (EHT) on some, or all, of their annual total Ontario payroll.
• For a more complete list of government programs, visit Invest In Ontario.
  

More Information on Tax Incentives (PDFs)

R&D Tax Comparison
R&D in Ontario
Youth Internships