Alberta-based companies could soon be eligible for a new grant worth up to 20% of their research and development (R&D) costs.
Alberta-based companies could soon be eligible for a new grant worth up to 20% of their research and development (R&D) costs. According to a welcome provincial announcement released on July 22, 2020, the new Innovation Employment Grant will provide phased funding for qualifying small and medium-sized businesses, which may come as particularly good news for start-ups in the province. Those who qualify for the grant could receive an amount equal to 8% of their base R&D expenditures (calculated as the company's average qualifying R&D spending over the previous two years), and 20% of spending that is above that base amount. According to the province, taxpayers may qualify for the grant on up to $4 million in annual R&D spending.
While the program is currently under development, the province says it expects to launch the grant next year on January 1, 2021, as part of Alberta's Recovery Plan. Alberta also notes that more details will be available once supporting legislation is introduced in the Fall of 2020.
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