Innovation Employment Grant (IEG)
AB, Canada
SR&ED tax credit for SMEs in Alberta
grant_single|update February 28, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJanuary 1, 2021
grant_single|financingType
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|terms_and_conditions
The Innovation Employment Grant offers a structured approach to funding R&D expenditures through the Alberta corporate tax system. It provides financial support that adapts to the amount of eligible R&D investment by the corporation.
- 8% payment for eligible R&D spending that matches up to the corporation’s base level of spending.
- Enhanced 20% payment for eligible R&D spending that exceeds the corporation's base spending level.
- Financial benefits apply to up to $4 million in annual R&D spending.
- Grant amounts are calculated based on the corporation's average qualifying R&D spending over the previous two years.
grant_single_labels|projects
This grant supports small and medium-sized businesses in Alberta that engage in research and development activities. Eligible projects aim to advance innovation and enhance industrial development through R&D efforts.
- Research and development activities undertaken by corporations in any industry.
- R&D initiatives that align with expenditures qualifying for the federal Scientific Research and Experimental Development (SR&ED) Tax Incentive Program.
- Projects increasing R&D spending above the corporation’s established base level of R&D expenditure from the previous two years.
- Innovative projects involving substantial R&D spending up to $4 million annually.
grant_single|admissibleProjectsExample
$ 40,000
Developing a mobile app to improve mental health services
$ 50,000
Developing a sustainable agriculture system using vertical farming methods
$ 80,000
Developing a new AI-powered financial analysis tool for banks
$ 45,000
Creating a sustainable packaging solution using biodegradable materials
$ 40,000
Innovating a new line of eco-friendly household cleaning products
$ 60,000
Researching renewable energy solutions with photovoltaic cells
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the corporation's activities and financial status.
- The applicant must be a corporation undertaking R&D activities in Alberta.
- The corporation should have incurred eligible expenditures in Alberta after December 31, 2020.
- Eligible expenditures must match those that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
- The grant phases out for firms with $10 million to $50 million in taxable capital.
- Firms with $50 million or more in taxable capital are not eligible for the grant.
grant_eligibility_criteria|who_can_apply
The grant is available to corporations undertaking R&D in Alberta. It specifically targets small and medium-sized enterprises (SMEs) by phasing out incrementally for firms that have taxable capital between $10 million and $50 million. Firms with $50 million or more in taxable capital are not eligible, ensuring the focus remains on SMEs.
grant_eligibility_criteria|who_cannot_apply
This grant does not specify any industry exclusions; however, there are financial eligibility criteria that companies must meet. Restrictions focus on ensuring the support targets small and medium-sized enterprises based on capital limits.
- Firms with $50 million or more in taxable capital are not eligible for the grant, as the grant phases out incrementally for firms with taxable capital between $10 million and $50 million.
grant_eligibility_criteria|eligible_expenses
Eligible projects and activities under the Innovation Employment Grant focus on research and development endeavors within Alberta. These initiatives aim to advance technological capabilities and innovation across different sectors.
- Research and development projects that align with the federal Scientific Research and Experimental Development (SR&ED) Tax Incentive Program.
- Innovative projects exceeding previous average R&D spending levels.
- Technology development and enhancement efforts that are conducted within Alberta.
grant_eligibility_criteria|zone
This grant is available to companies that undertake research and development (R&D) specifically in Alberta, Canada. The focus is on driving economic growth within this provincial jurisdiction.
- Companies operating and conducting R&D within the province of 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|apply
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grant_single_labels|otherInfo
Consider these additional details regarding the Innovation Employment Grant:
- The grant works through the corporate tax system, allowing for integration with regular tax return processes.
- The payment for grant claims will be subject to verification by the Canada Revenue Agency, ensuring expenditures align with qualifying criteria.
- Supporting documentation is critical; applicants must refer to the Guide to Claiming the Alberta Innovation Employment Grant for accurate preparation.
- The grant complements other economic incentives like the Job Creation Tax Cut, benefiting firms at different stages of their business cycles.
Apply to this program
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