This is a guest blog post provided to us by BDO Canada LLC.
Did you know:
- The government allocates billions of dollars each year to help companies like yours succeed?
- There are well over 400 funding initiatives currently available across Canada?
It’s easy for companies to get excited at the thought of ‘free money’ available through a wide range of government grants, tax credits and incentives in Canada. Many of these grants are offered to support initiatives like investment in research and development, innovation and implementation of new technology, and global business expansion. Navigating through the complexity of these offerings can be time-consuming and frustrating; here is a small sample of what you need to know:
Opportunity Funding Triggers:
- New product/process development – You may be eligible for funding under the SR&ED program if you have recently undertaken the development of a new product or process. Canadian-controlled private corporations can see a federal investment tax credit rate of 35% within the annual expenditure limit. The program has undergone some changes over the past few years; however, if yours is one of the many companies that have yet to apply for this technology-based tax program, you could be missing out on significant amounts of tax refunds or credits.
- Expanding into export markets – All too often companies believe they are too small to be an exporter; Export Development Canada generates the means for businesses to access foreign markets and thrive, by providing government grants, loans or other financial assistance. (Funding amount varies greatly based on location.)
- Training expenses – The Canada Job Grant (CJG) has been offering employers across the country a terrific opportunity to train existing or new personnel with the necessary skills to meet the needs of a current or new job position. The Canadian government may cover up to two-thirds of the cost of third-party training (up to a maximum of $10,000 per grant).
- Bridging the pre-commercialization gap – Build in Canada Innovation Program (BCIP) has a continuous intake application process in order to help companies procure and test late stage innovative goods and services. Through BCIP companies can be provided with testing and feedback on performance, information on doing business with the Government of Canada, as well as the awarding of contracts for developing pre-commercial innovations.
Navigating through these various opportunities is not just a time commitment. Each come with a specific set of eligibility and requirements that may be difficult to assess in the context of your business. Before embarking on the free money journey, seek advice! Talk to people who have leveraged these government incentives, or get the help of professionals that have a deep knowledge of how these programs work so you can create your own action plan and make the most of these opportunities.
David Spicer, partner at BDO Canada LLP and industry expert, assists a wide variety of companies with the Scientific Research & Experimental Development (SR&ED) tax incentive program administered by the Canada Revenue Agency (CRA). Spicer’s expertise in taxes and accounting, direct funding for business expansions, capital acquisitions, adoption of new technologies, hiring, training, and export market development, can help you access the ‘free money’ offered through government incentives and discover which program(s) your company may qualify for.