The Ontario provincial budget included cuts to two of its three research and development (R&D) tax credits. The refundable Ontario Innovation Tax Credit was reduced from 10% to 8% and the non-refundable Ontario Research and Development Tax Credit was lowered from 4.5% to 3.5%. The refundable Ontario Business-Research Institute Tax Credit remained unchanged at 20%. These changes will apply to expenditures incurred after June 1, 2016. Given the majority government, the proposed cuts will likely be passed into law.