Many Helpful SR&ED Programs are Available for Entrepreneurs

THURSDAY, NOVEMBER 16, 2023 

There are some interesting tax credits that tend to fly under the radar for most of us. If your business is currently in a phase of exploratory research and development, innovation, expansion or growth, there are funding programs you may be eligible for.

Below is a listing of active programs, who is eligible, available funding and application links. If you are unsure whether or not your business activities qualify, please reach out to us.

IRAP

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) provides advice, connections, and funding to help Canadian small and medium-sized businesses increase their innovation capacity and take ideas to market. Funding for larger research and development projects is targeted toward firms that will have demonstrated to the program the ability to grow rapidly and significantly.

In order to be eligible your business must be:

  • an incorporated, profit-oriented small or medium-sized business in Canada

  • have 500 or fewer full-time equivalent employees

  • plan to pursue growth and profit by developing and commercializing innovative, technology-driven new or improved products, services or processes in Canada

In order to apply, you must have:

  • a business plan or pitch deck

  • a copy of your company financials

  • resumes or biographies for each member of the management team and technical team on staff

To apply, click here.

Innovation Superclusters

As part of Budget 2022, $750 million over five years was earmarked for Canada's Global Innovation Clusters.

There are five clusters accepting applications: digital technology, protein industries, advanced manufacturing, scale AI and ocean.

For details on all five clusters and application information click here.

NGEN mfg Canada

NGen administers funding for advanced manufacturing. Currently open funding opportunities include electronic vehicle manufacturing, commercialization of quantum technologies, and mining, minerals and manufacturing.

For more details on the three currently open funding opportunities click here.

CAN-ON Job Grant

The Canada-Ontario Job Grant (COJG) is an Ontario government funding program that offers training grants to employers. Through the program, companies may receive non-repayable funding from the government to purchase third-party business training programs, including training for in-demand skillsets. Training is expected to improve the employability and value employees can provide; including new hires in these training sessions can also maximize your funding potential.

To qualify for the Canada-Ontario Job Grant, employers must be a:

- For-profit business;
- Non-profit organization;
- Employer consortium; or
-First Nations band council.

Applicants must also:

-  Have a license to operate in Ontario;
- Apply for third-party training programs that are delivered in Ontario;
- Abide by the Occupational Health and Safety Act and the Employment Standards Act;
- Possess Workplace Safety and Insurance Board or private workplace safety insurance coverage; and
- Maintain third-party liability insurance coverage.

Funding of up to $10,000-$15,000 per trainee is available, depending on the size of your organization

In order to apply visit here.

Student Work Placement Program

ESDC works with Employer Delivery Partners, part of the Student Work Placement Program. Employer Delivery Partners are a group of recognized associations and organizations that represent the interests of employers in industries.

They work with businesses and post-secondary education institutions to:

  • provide wage subsidies to employers that offer quality student work placements, and

  • create partnerships with colleges, universities, polytechnics and CEGEPs to recruit students for these placements

What is considered a student work placement?

Student work placement activities can include, but is not limited to:

  • mentorship programs

  • co-op placements

  • practicums, and

  • internships

For more information click here.

AMIC

The Advanced Manufacturing and Innovation Competitiveness (AMIC) Stream provides financial support to advanced manufacturing companies with a focus on small and medium-sized enterprises across Ontario. It provides investments in:

  • capital equipment

  • technology adoption

  • skills development

The types of support available include:

  • funding support

  • complementary services and support

The fund supports projects that:

  • create jobs and build talent

  • attract and encourage private sector investment

  • help companies to adopt technologies that improve their competitiveness

  • lead to business growth and broad positive economic impacts

  • encourage innovation, collaboration, and cluster development

To be eligible, businesses need to:

  • have at least three years of operations/financial statements

  • employ at least 10 people

  • commit to creating at least five new jobs and/or upskilled current jobs

  • invest at least $500,000 in their project

  • be located in, or plan to locate in, a community in Ontario

The application form and more information can be found here.

CleanTech Tax Credits

The Clean Technology ITC will provide a refundable investment tax credit (ITC) of up to 30% on eligible clean technology property acquired and available for use after March 27, 2023. The credit will be reduced to 15% in 2034 and fully phased out after 2034.

The focus is on:

-          Hydrogen

-          Cleantech

-          Electricity

-          Mfg

-          Carbon

The CCUS ITC will offer a refundable ITC between 37.5-60% depending on the type of spend.

The NSERC and Canexport are two other useful programs that are not currently running but are worth tracking should they reopen.

For more information please reach out to your RMR representative.