Yukon Research and Development Tax Credit
YT, Canada
Tax credit for R&D in Yukon
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Yukon
- Department of Finance (YK)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Tax credit of 15 to 20% for scientific research and experimental development expenditures in Yukon.
grant_single_labels|terms_and_conditions
This tax credit provides financial support for research and development activities undertaken in the Yukon by both individuals and corporations. It aims to incentivize innovation within the territory through specific financial benefits.
- The credit is refundable if the amount exceeds your payable income tax.
- The credit equals 15% of total eligible expenses.
- An additional 5% of total eligible Yukon College expenses can be claimed.
grant_single_labels|projects
The Yukon Research and Development Tax Credit supports research and development activities that take place within Yukon. This includes scientific research and experimental development projects that foster innovation and technological advancement.
- Scientific research conducted in Yukon.
- Experimental development projects conducted in Yukon.
- Research and development activities in collaboration with Yukon College.
grant_single|admissibleProjectsExample
$ 25,000
Developing an indigenous language learning app
$ 25,000
Implementing renewable energy solutions for a community center
$ 20,000
Creating a sustainable agriculture research project
$ 25,000
Developing an AI system to optimize mining operations
$ 23,000
Launching an eco-tourism initiative
$ 25,000
Establishing a bespoke furniture manufacturing facility
grant_single_labels|admissibility
Eligibility criteria for Yukon income tax measures include specific requirements for businesses and organizations operating within the territory.
- The organization must be an incorporated, private corporation.
- The organization must maintain a permanent establishment in the Yukon.
- The organization must have its head office located in the Yukon.
- The organization must pay at least 25% of its salaries and wages to Yukon residents.
- The organization must not exceed $100 million in assets.
grant_eligibility_criteria|who_can_apply
There are eligible types of companies for the Yukon Business Investment Tax Credit:
- Incorporated, private corporations operating in Yukon
- Companies with a permanent establishment and head office in Yukon
- Organizations paying at least 25% of salaries and wages to Yukon residents
- Companies with assets not exceeding $100 million
grant_eligibility_criteria|who_cannot_apply
Some types of companies may not be eligible for the grant based on specific criteria. These include companies that do not meet the residency requirements or do not engage in eligible investment activities.
- Companies that do not meet the residency requirements
- Companies that do not engage in eligible investment activities
grant_eligibility_criteria|eligible_expenses
The eligible expenses for the research and development tax credit are those associated with the scientific research and experimental development work conducted in the Yukon.
- Total eligible expenses for scientific research and experimental development.
- Additional eligible expenses related to projects at Yukon College.
grant_eligibility_criteria|zone
This grant is specific to individuals and corporations that have ties to the Yukon region. The eligibility criteria are aligned with the requirements for operations and residency within the Yukon.
- Individuals who are residents of Yukon on the last day of the taxation year.
- Corporations that maintain a permanent base in Yukon.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The criteria include eligibility based on age and residency, organization requirements, maximum claim limits, and timelines for filing.
- Applicants must be 19 years or older and Yukon residents.
- Eligible organizations must be incorporated, have a permanent establishment in the Yukon, and meet specific asset and payroll criteria.
- The maximum claim for the tax credit is $25,000 per year.
- Unused amounts can be carried back 3 years or forward 7 years.
- Claims must be filed with the appropriate documentation within specified timeframes.
grant_single_labels|otherInfo
Here are additional relevant details for Yukon's income tax measures:
- The Canada Revenue Agency (CRA) is responsible for administering Yukon's personal and corporate income tax.
- The Yukon child benefit program is integrated into the Canada child benefit, adding a Yukon-specific amount to the monthly payment.
- The Yukon business investment tax credit allows tax credits for Yukon residents investing in eligible local organizations.
- The First Nations Income Tax Credit ensures that taxpayers on settlement land do not pay more tax than those on non-settlement land, supporting equitable tax distribution across different land types.
- The tax credits available, like the Foreign Tax Credit, help prevent double taxation on income earned abroad.
- Unused business investment tax credits can be applied retroactively for up to three years or carried forward up to seven years.
grant_single_labels|contact
1-866-426-1527
Apply to this program
Understanding Yukon-Specific Tax Incentives for Residents and Businesses
Yukon offers a range of tax incentives and credits specifically tailored for both residents and businesses to foster financial well-being and economic development within the territory. These measures include personal and corporate income tax credits, such as the Yukon Child Benefit, Business Investment Tax Credit, and several others that aim to reduce tax burdens and promote local investments.
Detailed Overview of Yukon Tax Measures and Their Benefits
The Yukon territory has introduced several specific income tax measures to support individuals and businesses in managing their financial responsibilities while investing in the local economy. For personal income tax, the Yukon Child Benefit stands out by providing financial assistance to families with dependent children. As of July 1, 2024, families can receive up to $918 annually for each child, though this benefit is income-tested and gradually decreases as the family net income surpasses $35,000. Such targeted aid is essential in offering economic relief aimed at reducing child poverty and enhancing the living standards for residents.
On the business front, the Yukon Business Investment Tax Credit is pivotal in encouraging Yukon residents to invest in local businesses. This initiative rewards individual investors who are at least 19 years of age and Yukon residents, by offering them a 25% tax credit on qualifying investments in eligible Yukon enterprises. These enterprises must be private incorporated companies with significant economic ties to the territory, such as maintaining their head office in Yukon and paying at least 25% of their wages to local residents. The overarching goal of this credit is to bolster local entrepreneurship by facilitating capital access for Yukon-based firms.
Moreover, the First Nations Income Tax Credit plays a crucial role in maintaining tax equity among residents. It ensures that taxpayers residing on Yukon First Nations Settlement Lands do not incur higher taxes than those living on non-settlement lands. By accommodating this within the tax-sharing framework, Yukon acknowledges the unique status and needs of these communities, promoting fair tax practices and supporting regional autonomy.
Corporate tax incentives, such as the Manufacturing and Processing Profits Tax Credit, aim to enhance the competitive edge of Yukon's industrial sector. This credit allows qualifying corporations to claim a tax reduction based on their manufacturing profits within the Yukon. While large corporations claim up to 9.5%, the relief for small businesses has shifted with the general reduction of the small business tax rate to 0% since 2021, rendering the specific credit not applicable to them anymore. This reflects YT's commitment to nurturing its burgeoning sectors through strategic fiscal policies.
Additionally, political contributions by both individuals and corporations to recognized Yukon political entities are incentivized through a tax credit that acknowledges civic engagement and supports democratic processes. Similarly, the Research and Development Tax Credit underscores Yukon's dedication to fostering innovation by providing financial returns to entities engaged in significant research activities within the territory, with eligibility extending to both individuals and corporations.
The strategic layout of Yukon’s tax measures is designed to promote economic growth, encourage local investments, and support community-centric objectives. By targeting both personal and corporate tax domains, Yukon creates an inviting atmosphere for residents and businesses to thrive while contributing positively to the territory's economic landscape.
