Innovation Employment Grant (IEG)
The Innovation Employment Grant encourages economic growth by supporting small and medium-sized businesses that invest in research and development (R&D) with a grant worth up to 20% of qualifying expenditures.
Offered by Ministry of Jobs, Economy and Trade
Amount
8% payment for eligible R&D spending carried out in Alberta up to the corporation's base level of spending, plus an enhanced 20% payment for eligible R&D spending that exceeds the base level, on up to $4 million in annual R&D spending
Quick eligibility check
Who can apply
- Available to corporations that undertake R&D in Alberta.
- 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.
Eligible expenditures must have been incurred in Alberta after December 31, 2020 and match those that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
This is because to claim the IEG, a corporation has to have both eligible expenditures in Alberta and a permanent establishment in Alberta.
About the funding
The grant provides qualified corporations with:
- an 8% payment 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.
Show all funding details
The grant provides benefits on up to $4 million in annual R&D spending.
In general, the IEG is equal to 8 per cent of the lesser of the corporation’s eligible expenditures in respect of scientific research and experimental development (SR&ED) carried out in Alberta after December 31, 2020, and the corporation’s maximum expenditure limit for the year. The corporation will be eligible to claim an additional amount equal to 12 per cent of any such amount in excess of a base amount, or an allowed amount, if the corporation is associated with one or more corporations.
If the amount entered on line 134 is positive, it will reduce the corporation’s Alberta Tax Payable for the year, or it may be applied against any other amount owing to the Government of Alberta before the remaining balance, if any, is refunded to the corporation.
Eligible expenditures must have been incurred in Alberta after December 31, 2020 and match those that qualify for the federal Scientific Research and Experimental Development Tax Incentive Program.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Health Innovation: Accelerating Innovations into CarE (AICE) — Validate | Grant | Up to $300,000 | Open |
| Health Innovation: Accelerating Innovations into CarE (AICE) – Market Access | Grant | Up to 75% of total eligible Project Costs, up to $300,000-600,000* from Alberta Innovates for the AICE-Market Access stream (more than $300,000 per the Program Guide) | Open |
| Regional Quantum Initiative (RQI) in the Prairie Provinces | Loan, Grant | Businesses: interest-free repayable funding for up to 50% of eligible costs | Open |
