COVID-19 Response Plan - Ontario Government - Support for Canadians

ON Support for Businesses

Interest and Penalty Relief for many provincially administrated taxes

Eligibility

• Ontario businesses

Benefit

• Six-month period, between January 1, 2022 and July 1, 2022, providing Ontario businesses with a interest and penalty free period to make payments for provincially administered taxes:
  • Employer Health Tax
  • Beer, Wine & Spirits Taxes
  • Tobacco Tax Insurance Premium Tax
  • Fuel Tax
  • International Fuel Tax Agreement
  • Gas Tax
  • Retail Sales Tax on Insurance Contracts and Benefit plans
  • Mining Tax
  • Race Tracks Tax

Action Needed

• No action requires

COVID-19 Worker Income Protection Benefit

Eligibility

• Employer reimbursement for infectious disease emergency leave paid to their employees 

Benefit

• Eligible employers can be reimbursed for a maximum of 3 calendar days, up to $200 per employee per day taken

Action Needed

• Claims to be submitted through Workplace Safety and Insurance Board (WSIB) within 120 days of the date the employer paid the employee, or by November 28, 2022 (whichever is earlier)
• Bulk applications are available
• Program details available here

Employer Health Tax (EHT)

Eligibility

• Available to private-sector employers with annual payroll up to $5 million

Benefit

• Permanent increase to EHT exemption from $490,000 to $1 million for 2020
• Instalment threshold doubled from $600,000 to $1.2 million beginning with 2021 tax year

Action Needed

• No action required

Regional Opportunities Investment Tax Credit 

Eligibility

• Eligible business is a Canadian-controlled private corporation (CCPC) making eligible expenditures for capital property included in Class 1 and Class 6 for capital cost allowance purposes
  • Includes expenditures for constructing, renovating or acquiring qualifying commercial and industrial buildings in designated rural regions of ON
• Eligible corporations must have a permanent establishment in Ontario at the time a qualifying investment is made

Benefit

• 10% refundable corporate income tax credit available for expenditures in excess of $50,000 and up to a limit of $500,000 for qualifying investments that become available for use by CCPC in the taxation year on or after March 25, 2020
• Additional 10% tax credit for eligible expenses in excess of $50,000 and up to $500,000 for eligible property that becomes available for use after March 24, 2021 and ending Jan 1, 2023
• Maximum total credit is $90,000; credit is prorated for short years and unused balance can carry forward

Action Needed

• Applicable at time of filing of corporate income tax return

Ontario Together Fund

Eligibility

• Funding to firms and organizations with a minimum of two years of operations for projects that strengthen the resilience of Ontario’s healthcare sector and meet one of the following criteria:
  • Strengthen Ontario’s manufacturing capacity for goods and services critical to health, safety and security
  • Support homegrown technologies and innovation
• Projects must be completed by December 31, 2023

Benefit

• Grants to cover up to 75% of eligible project costs, up to a maximum grant of $2.5 M
• Projects may also be eligible for non-financial support including advisory services and assistance with compliance approvals

Action Needed

• Application requests will be accepted until October 1, 2022, 5pm EST
• See program details here

ON Support for Individuals

Temporary Ontario Jobs Training Tax Credit

Eligibility

• Individuals would be able to claim the Ontario Jobs Training Tax Credit on their 2021 personal income tax returns if they meet the following conditions:
  • They are resident in Ontario on December 31, 2021;
  • They have a Canada training credit limit for 2021 greater than zero.
• Eligible expenses would be the same as those that can be claimed for the Canada training credit. These include tuition and other fees paid to an eligible education institution in Canada for courses taken in 2021, or fees paid to certain bodies in respect of an occupational, trade or professional examination taken in 2021.

Benefit

• 50% of eligible expenses for 2021 to a maximum credit of $2,000.
• Refundable and provide support to eligible individuals whether or not they owe income tax for 2021.

Action Needed

• Claim in 2021 Personal Income Tax Return
• Additional information can be found here

Low-income Energy Assistance Program (LEAP)

Eligibility

• Intended for low-income customers who are behind on electricity and/or natural gas bills and may have service disconnected

Benefit

• Direct support to pay bills - $1,000 for electricity bills ($1,200 if home is heated electrically) and $1,000 for natural gas bills

Action Needed

• Contact electricity and/or natural gas utility
• Additional information can be found here

Ontario Tools Grant

Eligibility

• New eligible apprentices

Benefit

• The government is providing funding to help new eligible apprentices purchase the equipment they need to start their careers
• The funding amounts will be distributed as follows:
  • $1,000 for those in motive power sector trades;
  • $600 for those in construction and industrial sector trades;
  • $400 for those in service trades.
• To be eligible for the new grant, apprentices must have:
  • Completed level 1 training on or after April 1, 2020;
  • An active registered training agreement;
  • Been registered as an apprentice for at least 12 months.

Action Needed

• Details on application process available here

COVID-19 Energy Assistance Program (CEAP)

Eligibility

• Residential customers struggling to pay energy bills as a result of COVID-19
• Beginning in January 2021 available credit amounts increased and more families are eligible to access funding

Benefit

• Residential customers may be eligible for up to $750 in support towards overdue electricity and natural gas bills

Action Needed

• Contact electricity and/or natural gas utility to apply

For closed programs, click here