Innovation Employment Grant (IEG)

By mmuise
Description:

The Innovation Employment Grant (IEG) is a refundable tax credit for small and medium-sized businesses that invest in research and development (R&D).


Comments on Funding:

The grant provides benefits on up to $4 million in annual R&D spending.
Funding is:
- 8% for eligible R&D spending carried out in Alberta, up to the corporation’s base level of spending.
- an enhanced 20% payment for eligible R&D spending that exceeds the corporation’s base spending level. A firm’s base level of spending is determined by calculating the corporation’s average qualifying R&D spending over the previous 2 years.

Deadline: Open as of January 1, 2021
Eligibility:

Applicants must:

  • be corporations that undertake R&D in Alberta;
  • have incurred eligible expenses in Alberta after December 31, 2020 and match those that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
  • The grant will phase out incrementally for firms with between $10 million and $50 million in taxable capital to ensure the support targets small and medium-sized companies.
  • Firms with $50 million or more in taxable capital are not eligible for the grant.
Application Steps:

-

Documentation Needed:

-

Other Things to Note:

Program status: Open as of January 1, 2021.

About the author
mmuise