Alberta Innovation Employment Grant (IEG)
Overview
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.
At a glance
Funding available
- Develop a new product
- Research and experimental development
- Conduct research
- Maximum amount : 4,000,000 $
- Up to 20% of project cost
- Open Date : January 1, 2021
Eligible candidates
- All industries
- Alberta
- For-profit business
- $ 50,000,000 maximum revenue
- All organization sizes
- Startups
Activities funded
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.
Eligibility
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.
Selection 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
How to apply
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.
Collect Documentation Compile records of all R&D expenditures incurred in Alberta after December 31, 2020.
Prepare the AT1 Tax Return Complete the Alberta Corporate Income Tax Return (AT1) for the applicable taxation year.
Complete Schedule 29 Fill out Schedule 29, which is specific to the Innovation Employment Grant.
Submit Tax Return File the completed AT1 return along with Schedule 29 to the Tax and Revenue Administration of Alberta.
Wait for Confirmation Await verification of expenses and grant approval from the Canada Revenue Agency.
Additional information
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.
