Montreal has the largest economy in Quebec and second of all Canadian cities. It hosts a wide range of industries, from aerospace to pharmaceuticals to tourism. Notable among Montreal’s economic sectors is its IT industry, which is known the world over for being at the forefront of innovation. It is home to tech heavyweights and some of the best learning institutions for artificial intelligence. For this reason, the city is considered a global AI hub.
Montreal is also one of the biggest sources of video game development. This started when Ubisoft Montreal opened in 1997 and other leading game developers followed suit shortly after.
Building on this success, the Government of Canada offers financial support to innovative businesses that can advance Montreal’s IT industry even further. This will carry the momentum forward and help the economy recover faster from the pandemic.
Innovative businesses are the cornerstone of a strong and resilient economy. They stimulate growth and create high-paying jobs. It is with this understanding that Canada is investing in projects with high potential to make an impact.
The government encourages innovation in Montreal and across the country through grants, loans, tax incentives, and other funding sources. The Scientific Research and Experimental Development or SR&ED program and IRAP funding are among the most popular.
Another option is the Canada Economic Development for Quebec Regions or CED, which recently granted three IT companies a total of $700,000 in financial support. Each of these companies shows great potential to create more jobs and strengthen Montreal’s IT industry.
Better Data Governance by Prodago
With digital technology generating tons of useful information, modern tools like Advanced Analytics, machine learning, and artificial intelligence have become essential.
They help businesses leverage data to increase productivity, improve customer experience, and solve various business problems.
However, one of the biggest concerns for enterprises operating in this ecosystem is exposure to a host of quality, compliance, and ethics risks. To manage them, businesses need sound data governance. This is what Prodago specializes in.
Prodago was founded in 2013 and is one of the many successful start-up stories in Montreal. It helps organizations drive more value from data governance, offering a cloud computing platform that affords many advantages:
- Ability to assess data quality and analytics governance
- Identify analytics and AI data risks
- Create a clear roadmap to minimize the risks
- Generate the required operating practices
This software solution can help many businesses use data analytics with more confidence. It has the potential to generate growth in Montreal and beyond Canada’s borders. It is for this reason that the CED granted them $300,000 in financial support for export marketing.
This money will help Prodago representatives join conferences and other events overseas. It will also help pay for promotional tools and other marketing costs. By the end of this project, 60 new jobs will be created.
Business Growth Through Digital Transformation with Big Bang
Digital technology is at the core of most commercial activities today. It closes the gap between a brand and its consumers. It gives businesses valuable insight on how to improve their processes.
For a business to thrive today, its IT infrastructure must complement its operations. This is what Big Bang can give its clients.
Big Bang offers a wide range of cloud solutions that can help businesses realize their true potential. These solutions are based on each client’s strategic roadmap and critical KPIs.
Big Bang’s unique selling point is that it does not just resell software products but provides industry-focused solutions with real-time visibility. In short, it offers a one-stop-shop for all cloud business needs.
In recognition of the company’s potential to contribute more to Montreal’s economy, CED granted them financial support worth $250,000. This amount will help Big Bang create and implement an effective export marketing strategy to stimulate expansion:
- Fees for international conferences and events
- Travel costs
- Translation costs
- Hiring of marketing people
This expansion project will help Big Bang create 20 new jobs.
AI with a Human Touch Using Heyday Technologies’ Conversational Platform
One of the biggest challenges for retailers is how to convert user interactions into sales. Conversion is largely driven by their ability to deliver a great customer experience.
While human relations are among the most potent tools for a brand to connect with its target audience, it is not the most productive or cost-efficient. This is where Heyday Technologies comes in.
Heyday Technologies combined the power of AI and the human touch in their Conversational AI platforms. Using these platforms, businesses can connect with their target audience at a more meaningful level and a much broader scope.
The CED has high hopes for Heyday’s business solution and invested $150,000 to help them explore export markets. This money enabled Heyday to hire two market development resources, join trade fairs, engage in exploratory visits, and pay for digital marketing expenses. As a result, the company was able to sign contracts with Lacoste, Kaporal, and other European brands. This will lead to the creation of 15 new jobs.
More Innovations with SR&ED Refunds Canada
The above examples are but a glimpse into Canada’s level of commitment to innovation, as the government has created many ways to help monetize pioneering projects through research and experimental development activities.
SR&ED tax credits is the tip of the spear, leading the charge to stimulate economic growth and create jobs by helping Canadian companies innovate.
The SR&ED program is a federal tax incentive program implemented by the Canada Revenue Agency. It helps small businesses pursue research and development R&D activities by providing SR&ED tax incentives.
SR&ED refunds can be accessed in three ways:
- An investment tax credit or ITC
- An income tax deduction
- A refund in certain cases
All Canadian controlled private corporations or CCPCs with eligible SR&ED projects can apply. Those who qualify for SR&ED can earn an SR&ED tax credit up to 35% refundable ITC for the first $3 million in qualifying expenditures. Eligible costs in excess of this amount are entitled to 15% non-refundable ITC, which can be deducted from the tax payable.
The Canada Revenue Agency also offers qualifying corporations 15% ITC for eligible costs in excess of $3 million. Forty percent of this amount is refundable.
Aside from CCPCs, the SR&ED program accepts claims from trusts, partnerships, proprietorships, and other corporations. These entities are eligible for a basic rate of 15% ITC for all eligible SR&ED costs.
For projects to qualify for SR&ED tax refunds, they must meet five basic criteria:
- A scientific and technological uncertainty is present
- A hypothesis is formulated to eliminate the uncertainty
- A systematic investigation is used to implement the hypothesis
- The approach adopted could lead to scientific and technological advancements
- Records were kept throughout the project
If your company is working on a groundbreaking idea that meets the above conditions, you could be eligible for an SR&ED claim. Maximize your chances of qualifying for SR&ED by talking to our funding specialists here at EVAMAX.