Federal Government Resources and Financing Assistance
FedNor - Northern Ontario Development Program - InnovationThe Innovation program is funding and support for new technologies and their development. The program is designed to promote interaction between science and industry. FedNor provides early additional support for early stage research and development, to help Northern companies bring new products and services to market. FedNor provides assistance to organizations that attend to the necessary infrastructure, environment and conditions to facilitate applied research and development and the development, application and transfer of new technologies to the North. Past areas of FedNor support have included state-of-the-art mining technology, medical research and biotechnology.
Apply and/or read more on this program here: Fednor Innovation Program
FedNor - Youth Internships - Private Sector ProgramThe Youth Internship - Private Sector Component encourages employers to provide young northerners with education-related job experience which would ideally lead to permanent full-time employment within Northern Ontario. The Program is targeting internships that provide valuable work experience within small businesses working in areas of innovation, connectedness or trade with the objective of leading to longer term employment with the employer or within Northern Ontario.
FedNor will contribute up to 50% to a maximum of $27,500 of eligible costs for a period of up to 12 months or 52 weeks. Eligible costs are the incremental salary for the full-time intern and mandatory employee benefits incurred by the organization. Agreements of less than 12 months or 52 weeks will be pro-rated accordingly.
Apply and/or read more on this program here: FedNor - Youth Internships - Private Sector Program
Environment Canada's Science Horizons Youth Internship
The program offers promising young scientists and post-secondary graduates hands-on experience working on environmental projects under the mentorship and coaching of experienced scientists and program managers.
A maximum of $12,000 per placement will be funded. Employers must provide a minimum of 30% of the eligible cost of the project. Project costs must be only those costs associated with the Youth's involvement in the project.
Apply and/or read more on this program here: Environment Canada's Science Horizons Youth Internship
Additional funding can be found through the following websites:
Canada Business: Services For Entrepreneurs | http://www.canadabusiness.ca/
G Funds Online | http://www.gfundsonline.com/
Scientific Research and Experimental Development (SR&ED) Tax Incentive Program
The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada. It is the largest single source of federal government support for industrial R&D.
The SR&ED program gives claimants cash refunds and/or tax credits for their expenditures on eligible R&D work done in Canada.
Generally, a Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20% of qualified expenditures for SR&ED carried out in Canada.
Work that qualifies for SR&ED tax credits includes:
- experimental development to achieve technological advancement to create new materials, devices, products, or processes, or improve existing ones;
- applied research to advance scientific knowledge with a specific practical application in view;
- basic research to advance scientific knowledge without a specific practical application in view; and
- support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research, but only if the work is commensurate with, and directly supports, the eligible experimental development, or applied or basic research.
The following activities are not eligible for benefits under the program:
- social science and humanities research;
- commercial production of a new or improved material, device, or product, or the commercial use of a new or improved process;
- style changes;
- market research or sales promotion;
- quality control or routine testing of materials, devices, products, or processes;
- routine data collection;
- prospecting, exploring, or drilling for or producing minerals, petroleum, or natural gas; and
- development based solely on design or routine engineering practice.
How do businesses apply for the tax credit?
Complete Form T661, Claim for Scientific Research and Experimental Development (SR&ED) in Canada. Also complete one of the following:
- Schedule T2SCH31, Investment Tax Credit - Corporations, if you are a corporation
- Form T2038(IND), Investment Tax Credit (Individuals), if you are an individual.
All the information in these forms is prescribed information.
You should submit your claim with your T2 corporation or your T1 individual income tax return, or within 12 months of your income tax return's filing due date for the year in which the SR&ED expenditure was incurred. As a result, corporations have 18 months to file Form T661 and Schedule T2SCH31, while individuals have 17 1/2 months to file Form T661 and T2038(IND).
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