New dollars for innovative businesses — COVID-19 relief

New dollars for innovative businesses — COVID-19 relief

Existing eligible recipients may be able to access extended support

1000

Related content

Certain innovative businesses may be eligible for additional funding after the government announced an extension to the Innovation Assistance Program (IAP). Canada is providing over $155 million to extend the IAP, available through the Industrial Research Assistance Program (IRAP). The government says it will contact existing IAP funding recipients who may be eligible over the coming weeks with more information.

 

Background

 

In response to COVID-19, Canada made a series of announcements to enact fiscal and tax relief to support individuals and businesses, including the introduction of the Canada Emergency Wage Subsidy (CEWS).

 

To assist small- and medium-sized enterprises ineligible for the CEWS, the government announced $250 million in funding for the IAP on April 17, 2020. The IAP provides a temporary wage subsidy to eligible innovative firms that do not yet have revenue or are in the early stages of development, and was originally available for the period April 1, 2020 to June 23, 2020.

 

For additional details, see TaxNewsFlash-Canada 2020-42, "Innovative Businesses — Apply Now for COVID-19 Relief".

 

Extended funding

 

The government announced the extension of IAP funding to allow eligible recipients to access additional support from June 24, 2020 through December 19, 2020. To be eligible, a recipient must have already qualified and received the initial IAP funding. However, eligibility does not guarantee funding. Each request for funding is assessed based on merit criteria.

 

The government said that the extended IAP funding will apply a declining scale of support, meaning the maximum benefit will gradually lessen as the program progresses, similar to the CEWS.

For more information, contact your KPMG advisor.

Information is current to November 16, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today