Innovation Employment Grant
Highlights
This program is designed for small and medium-sized businesses like yours that invest in research and development (R&D). By participating, you can receive a grant worth up to 20% of your qualifying R&D expenditures. This financial boost can help you innovate and grow, making it easier to compete in your industry.
What You Get
- 8% payment for eligible R&D spending up to your base level.
- 20% payment for eligible R&D spending that exceeds your base level.
- Benefits on up to $4 million in annual R&D spending.
Why Apply?
- No formal application process: Simply claim the grant when you file your annual corporate tax returns.
- Support at critical stages: Ideal for businesses in the early stages of operation.
- Complementary benefits: Works alongside the Job Creation Tax Cut to support your business at all stages.
By being approved, you can reinvest in your business, drive innovation, and enhance your competitive edge. The process is straightforward, making it easier for you to access the funds you need to succeed.
Financing Details
Type of Financing: Grant
Repayment Terms and Interest Rates:
- No repayment required.
- No interest rates apply.
Eligible Expenses:
- Research and Development (R&D) expenditures incurred in Alberta.
- Expenses must qualify under the federal Scientific Research and Experimental Development (SR&ED) Tax Incentive Program.
Use of Funds:
- Funds can be used for any R&D spending carried out in Alberta.
- Up to 20% of qualifying expenditures can be covered by the grant.
Restrictions on Use of Funds:
- Funds cannot be used for any expenses not related to R&D.
- Expenses must be incurred in Alberta to qualify.
Fees:
- No fees are associated with this grant program.
Qualifications
- Must be a corporation.
- Must undertake research and development (R&D) in Alberta.
- Must have taxable capital less than $50 million.
- Eligible expenditures must have been incurred in Alberta after December 31, 2020.
Expenditures must qualify for the federal Scientific Research and Experimental Development (SR&ED) Tax Incentive Program.
Disqualifications:
- Firms with $50 million or more in taxable capital.
Description
This program offers your business a grant of up to 20% for research and development (R&D) expenses. This means you can get financial support for your innovative projects.
Here's how it works:
- You receive an 8% payment for eligible R&D spending in Alberta, up to your business's base level of spending.
- For R&D spending that exceeds your base level, you get an enhanced 20% payment.
Your base level of spending is the average of your qualifying R&D expenses over the past two years. The grant covers up to $4 million in annual R&D spending.
This grant is designed to help small and medium-sized businesses like yours grow and innovate. It supports your investment in new technologies and processes, making it easier to expand and compete. The grant is claimed through your corporate tax return, simplifying the process and ensuring you get the support you need to thrive.
Program Steps
Gather Required Documentation:
- Financial statements for the past two years.
- Detailed records of R&D expenditures.
- Documentation supporting eligibility for the federal SR&ED program.
Complete Schedule 29:
- Fill out Schedule 29, which is part of the Alberta Corporate Income Tax Return (AT1).
- Ensure all R&D expenditures are accurately reported.
File Corporate Income Tax Return:
- Submit the completed AT1, including Schedule 29, for the respective taxation year.
- Ensure all information is accurate and complete.
Verify Expenditures:
- Await verification of qualifying expenses by the Canada Revenue Agency.
- Ensure expenses are confirmed to have been undertaken in Alberta.
Receive Grant Payment:
- Once verified, the grant payment will be processed.
- Monitor your business account for the receipt of the grant funds.