If your business carries research development and innovation projects, you could be missing out on innovation grants. These projects could include innovation efforts with research institutions, colleges or universities, to help develop processes or products as improved products.
The Canadian federal government, in partnership with provincial governments, offers a range of innovation grants for businesses.
Through the Innovation Fund Canada and the Innovation Center, many projects are financially supported.
Here are our top 2 picks for innovation grants Canada:
Industrial Research Assistance Program (IRAP)as an Innovation Grant
The IRAP program is Canadian government-funded and is designed to help accelerate the research and development projects within Canada. Businesses aiming for improved products are the target recipients’ for this grant. The National Research Council of Canada (NRC) administers and managed this program. As a federal program that provides funding to support innovation, businesses from all provinces are eligible to apply for this grant.
What does it cover?
- The IRAP program has a funding contribution of up to 60%-80% of internal technical labour and subcontractor expenses
- This means you could receive up to 80% of wages paid for your projects as a grant!
How can you apply?
- To apply, you business will be assessed to determine eligibility based on the following criteria:
- It is an incorporated, profit-oriented small or medium-sized business in Canada
- It has 500 or fewer full-time employees
- It plans to pursue growth and profit by developing and commercializing innovative products and services
- If your business qualifies, you will need to submit a project proposal
- For any additional questions read here and please contact EVAMAX.
Scientific Research and Experimental Development Tax Credit
- The SR&ED Tax Credit program aims to fund research and development projects for business following their completion
- Tax incentives are awarded to businesses that perform R&D in either refundable or non-refundable ways
What does it cover?
- The SR&ED program covers project expenditures including wages and salaries paid out for SR&ED work, material expenses and contractor and subcontractor expenses
- Businesses can expect to receive up to 68% of qualified expenditures back in SR&ED credits in combined federal and provincial credits
- Processing time for tax credits typically ranges between 4-6 months and the claim must be filed within 18 months of the company’s fiscal year-end
How can you Apply?
- Companies can apply for the SR&ED credit by completing the T661 form as a part of their T2 Corporate Tax filing
- EVAMAX specializes in SR&ED filings and have expert advice. Contact EVAMAX today for any additional questions regarding your SR&ED application
Tips on how to make the most out of your innovation grant applications:
Prepare your documents for innovation grants!
- Most innovation funding grant applications require supporting documentation as a part of the application or project proposals
- The key to making these effortless is to keep a good record of official project documentation as well as drafts
- This can be achieved by maintaining an organized record-keeping practice
- Invoices for expenses incurred during the project should also be preserved
- They can help you recover costs after the completion of a project and also estimate future expenses
Maintain a good time log!
- Most grant and tax credit programs cover wages and salaries expenses incurred for the duration of the innovation project
- The easiest way for your business to claim the correct amount is by maintaining an active time log
- This log should track and keep a record of all R&D and innovation related work and hours put in by each employee
- You can then use these records for your grant applications and have the logs as evidence to support your claims
Follow up on your application!
- The best way to ensure that you receive your innovation grants is to actively follow up on your applications
- Although all programs have various timelines, be sure to remember the check points of your application
- If you don’t hear back as expected, follow up and ensure that all required documentation is received