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|openingDateJanuary 01, 2021
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)
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grant_card_status|open
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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|register
Here are the steps to claim the Innovation Employment Grant:
- Step 1: Verify Eligibility
- Ensure your corporation conducts R&D activities in Alberta.
- Confirm that your corporation's taxable capital is below $50 million.
- Verify that your expenditures qualify under the federal SR&ED program.
- Step 2: Collect Documentation
- Compile records of all R&D expenditures incurred in Alberta after December 31, 2020.
- Calculate your corporation’s base level of R&D spending from the past two years for comparison.
- Step 3: Prepare the AT1 Tax Return
- Complete the Alberta Corporate Income Tax Return (AT1) for the applicable taxation year.
- Ensure all corporate income tax calculations are up to date and accurate.
- Step 4: Complete Schedule 29
- Fill out Schedule 29, which is specific to the Innovation Employment Grant.
- Detail all qualifying R&D expenditures for the grant calculation.
- Step 5: Submit Tax Return
- File the completed AT1 return along with Schedule 29 to the Tax and Revenue Administration of Alberta.
- Ensure submission occurs by the tax filing deadline to avoid any delays.
- Step 6: Wait for Confirmation
- Await verification of expenses and grant approval from the Canada Revenue Agency.
- Receive confirmation once the grant has been processed.
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
Boost Your Business Innovation with Alberta's R&D Grant
The Innovation Employment Grant is designed to support small and medium-sized enterprises in Alberta by providing financial backing for their R&D activities, enhancing their capacity for innovation and growth. This grant rewards firms for R&D spending, offering increased benefits as they expand their research efforts beyond established spending levels.
Navigating Alberta's Innovation Employment Grant Details
The Innovation Employment Grant is a strategic initiative by the Alberta government aimed at bolstering the economic landscape of the province through supporting research and development activities. This initiative provides a substantial incentive for small and medium-sized businesses that engage in R&D, offering up to 20% in grants on qualified expenditures. The program is structured to encourage increased R&D investment by rewarding firms that elevate their spending above their historical average levels, thus propelling growth and innovation at critical stages of business development.
Businesses in Alberta can gain from up to $4 million in R&D spending annually, benefiting from an 8% baseline payment on eligible expenses. If a corporation's R&D expenditure surpasses its established baseline, it enjoys enhanced support at a 20% rate on the excess amount, thereby encouraging incremental investment in pioneering projects. This design not only supports businesses in their formative years but also complements existing tax measures such as the Job Creation Tax Cut, creating a synergistic effect to stimulate the regional economy.
Eligible corporations are automatically considered for the grant through their annual corporate tax filings, leveraging Schedule 29 of the Alberta Corporate Income Tax Return. This streamlined process does not require a separate application, simplifying access to support. However, the verification process involves an assessment by the Canada Revenue Agency to ensure alignment with federal SR&ED standards and compliance with provincial stipulations. As a phased initiative, the grant gradually decreases for firms with taxable capital between $10 million and $50 million and is unavailable for those exceeding $50 million, ensuring the focus remains on enabling small and medium-sized enterprises.
Spending must align with eligible criteria, matching those expenditures recognized under the federal Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, ensuring cohesion between federal and provincial supports. This alignment helps streamline eligibility checks and disbursements while reinforcing a consistent standard for R&D activity recognition across Canada.
This grant is not only a financial boon for businesses looking to expand their R&D capabilities but a strategic tool for fostering a more diverse and resilient economic structure within Alberta. By incentivizing small to medium enterprises to increase their focus on innovative practices, the Innovation Employment Grant paves the way for them to contribute significantly to local and national economic advancements.
