Are you a small or medium sized business that invests in research and development (R&D) within Alberta? Well, we have great news for you! The Innovation Employment Grant is an existing grant that is already a part of the SR&ED program. It is set in place to encourage economic growth and promote investment and diversification. The grant will provide a minimum of 8 percent on a firm’s base expenditure and up to 20 percent on spending that is above the company’s average over the past 2 years. If your business is spending in R&D within Alberta, you will be rewarded with a grant worth up to 20% of qualifying expenditures.
Type of Funding available:
The Innovation Employment grant is a type of grant that is delivered through the corporate tax system and does not follow a formal application process. The eligible corporations will have the ability to claim the grant that is being offered, once they file their annual corporate tax returns. This grant will provide the qualified applicants with benefits on up to $4 million in annual R&D spending. There are two rates in which an applicant can claim: an 8% payment for eligible R&D spending that is carried out in Alberta, for expenditures up to base level of spending.
The grant also will provide qualified applicants with an enhanced 20% payment for eligible R&D spending that exceeds the corporation’s base spending level. It is also important to note that an organization’s base level of spending is determined by calculating the corporation’s average qualifying R&D spending over the past 2 years.
Eligible Applicants and Projects:
- Available to businesses that are committed to R&D in Alberta.
- The Innovation Employment grant will incrementally decrease for firms with between $10 million and $50 million in taxable capital to ensure the support targets small and medium-sized companies.
- Eligible expenditures must have been incurred in Alberta after December 31, 2020, and match those that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
This grant will be submitted with the federal SR&ED claim and is to be delivered through the corporate tax system. To claim the Innovation Employment Grant, corporations that are deemed eligible, must complete, and file a new Schedule 29 to the Alberta Corporate Income Tax Return (AT1), in addition to the AT1 for the respective taxation year.
The grant is to be based on expenditures that also qualify for the federal SRED program. Payments cannot be processed until the Canada Revenue Agency verifies the qualified expenses and that these expenses have been undertaken in Alberta by Tax and Revenue Administration.
This is a continuous intake program that is always accepting applications. Simply submit the AIEG through corporate taxes alongside the federal SR&ED claim. Please note that the deadline to submit for the fiscal year to be submitted is 18 months after the fiscal year end.
Contact EVAMAX today to help you apply today!