Canada: Funding grant for R&D expenditures proposed for SMEs in Alberta
Canada: Funding grant for R&D expenditures
Companies—in particular, start-ups—based in Alberta could soon be eligible for a new funding grant that would be up to 20% of their research and development (R&D) costs.
According to a provincial announcement (22 July 2020), the new “innovation employment grant” would provide phased funding for qualifying small and medium-sized (SMEs) businesses. Those entities that 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.
Eligible taxpayers could qualify for the grant on up to $4 million* in annual R&D spending. While the program is currently under development, the province announced that it expects to launch the grant on 1 January 2021 as part of Alberta’s recovery plan. It is expected that more details will be available once supporting legislation is introduced in the fall of 2020.
Read a July 2020 report [PDF 271 KB] prepared by the KPMG member firm in Canada
*$ = Canadian dollar
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