Alberta Innovation Employment Grant (IEG)

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.

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.

Who is eligible?

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.

Who is not eligible

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.

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.

Eligible geographic areas

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.

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

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.