Innovation Employment Grant
AB, Canada
SR&ED tax credit for SMEs in Alberta
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Alberta
- Ministry of Treasury Board and Finance (AB)
grant_single|status
grant_card_status|open
grant_single_labels|preview
If your business has less than $50 million in taxable capital, you can get a refundable tax credit of up to 20% of your research and development expenses incurred after December 31, 2020.
grant_single_labels|projects
Projects eligible for the Innovation Employment Grant include:
- Research and Development (R&D) activities conducted in Alberta
- Qualifying expenditures aligning with the federal Scientific Research and Experimental Development Tax Incentive Program
grant_single|admissibleProjectsExample
$80,000
Calgary
Developing a new AI-powered financial analysis tool for banks in Calgary.
$45,000
Edmonton
Creating a sustainable packaging solution using biodegradable materials in Edmonton.
$60,000
Red Deer
Researching renewable energy solutions with photovoltaic cells in Red Deer.
$40,000
Lethbridge
Developing a mobile app to improve mental health services in Lethbridge.
$40,000
Medicine Hat
Innovating a new line of eco-friendly household cleaning products in Medicine Hat.
$50,000
Banff
Developing a sustainable agriculture system using vertical farming methods in Banff.
grant_single_labels|admissibility
The eligibility criteria for this grant:
- Available to corporations that undertake R&D in Alberta.
- The grant will phase out incrementally for firms with between $10 million and $50 million in taxable capital to ensure the support targets small and medium-sized companies.
- Firms with $50 million or more in taxable capital are not eligible for the grant.
- 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.
grant_eligibility_criteria|who_can_apply
There are eligible types of companies for the Innovation Employment Grant:
- Corporations that undertake research and development (R&D) in Alberta
grant_eligibility_criteria|who_cannot_apply
Some types of companies are not eligible for the Innovation Employment Grant:
- Companies with $50 million or more in taxable capital.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for the Innovation Employment Grant include:
- R&D expenditures carried out in Alberta after December 31, 2020
- Expenses matching those eligible for the federal Scientific Research and Experimental Development Tax Incentive Program
grant_eligibility_criteria|zone
The Innovation Employment Grant is available to corporations that undertake R&D in Alberta, Canada.
- Alberta
grant_single_labels|criteria
There are evaluation and selection criteria for the Innovation Employment Grant.
- Corporations must undertake R&D in Alberta
- Base level of spending determined by average qualifying R&D spending over previous 2 years
- Grant phases out for firms with taxable capital between $10 million and $50 million
- Eligible expenditures must match those qualifying for the federal SR&ED program
grant_single_labels|register
- Complete and file a Schedule 29 to the Alberta Corporate Income Tax Return (AT1) for the respective taxation year.
- Ensure that eligible expenditures match those that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
- Payments will not be processed until qualifying expenses have been verified by the Canada Revenue Agency and confirmed to have been undertaken in Alberta by Tax and Revenue Administration.
grant_single_labels|otherInfo
The Innovation Employment Grant supports small and medium-sized businesses in Alberta by providing funding for R&D expenditures and is designed to complement the Job Creation Tax Cut.
- The Innovation Employment Grant is based on expenditures that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
- To receive the grant, companies must complete and file Schedule 29 with their Alberta Corporate Income Tax Return (AT1).
- Payments will be processed once qualifying expenses are verified by the Canada Revenue Agency.
- The grant provides benefits for up to $4 million in annual R&D spending.
- The grant phases out for firms with between $10 million and $50 million in taxable capital, and is not available for firms with $50 million or more in taxable capital.
- Eligible expenditures must have been incurred in Alberta after December 31, 2020.
Apply to this program
Summary of the Innovation Employment Grant
The Innovation Employment Grant is a program in Alberta that supports small and medium-sized businesses investing in research and development (R&D) by providing a grant worth up to 20% of qualifying expenditures. It encourages economic growth, rewards R&D spending, and complements the Job Creation Tax Cut to benefit companies at all stages of their business cycles.
Understanding the Innovation Employment Grant in Alberta
The Innovation Employment Grant is a significant initiative in Alberta aimed at promoting innovation and economic diversification by incentivizing companies to invest in research and development activities. This grant is designed to support small and medium-sized businesses that engage in R&D projects within the province, providing them with financial assistance to foster growth and competitiveness.
One of the key features of the Innovation Employment Grant is its flexibility in rewarding all qualifying R&D spending, regardless of the industry in which the corporation operates. This inclusivity allows companies from various sectors to benefit from the grant, encouraging a wide range of businesses to invest in innovation and technological advancement.
Eligible corporations can claim an 8% payment for R&D spending carried out in Alberta, up to their base level of spending, and an enhanced 20% payment for expenditures exceeding the base level. The base spending level is determined based on the average qualifying R&D spending over the previous two years, ensuring fair and proportional support for companies at different stages of operation.
Furthermore, the Innovation Employment Grant complements the Job Creation Tax Cut, another Alberta government initiative focused on reducing the corporate tax rate to stimulate job growth and business expansion. By offering both the grant and the tax cut, the government aims to create a supportive environment for businesses of all sizes, especially smaller firms that may not yet be profitable.
To be eligible for the Innovation Employment Grant, corporations must undertake R&D activities in Alberta, with eligible expenditures incurred in the province after December 31, 2020. The grant provides benefits on up to $4 million in annual R&D spending, encouraging companies to invest in innovation and contribute to the province's economic development.
Overall, the Innovation Employment Grant plays a crucial role in fostering a culture of innovation and entrepreneurship in Alberta by providing financial incentives for businesses to engage in research and development. It not only supports companies in their R&D efforts but also contributes to the long-term economic growth and competitiveness of the province, creating a conducive environment for innovation-driven businesses to thrive.
