How to take advantage of government grants and tax incentives

By October 20, 2017 March 3rd, 2020 No Comments

Thomas Edison once said that “Genius is one percent inspiration and 99 percent perspiration”.

Unfortunately, going from that inspirational idea to the finished product takes a lot more than hard work. Just like Edison, you also need to invest in a lot of research and development.


And R&D doesn’t come cheap.

Fortunately the Federal and provincial Government helps business in two ways: Grants and Tax Incentives

Government Grants – What’s available to you?

You might be surprised to find out just how many different government grants and assistance programs are on offer. The Federal Government’s https://www.canada.ca/en/services/business/grants.html, helps you work out the grants your business may be eligible for. Depending on your type of business, different grants might be applicable.

Futupreneur Canada has also great grants and loans for young adults age 18-39. https://canadabusiness.ca/programs/futurpreneur-canada-start-up-program-1/?it=eng/program/2565/

You will get an interest only loan for up to $15,000 and you also get mentors on your area that will help you to stay on track with your business plan.

Get in touch with us if you’d like us to shortcut the process for you, and we’ll let you know which grants are worth applying for in your situation.

Keep in mind there’s no guarantee a grant application will be successful. That’s one reason the next type of assistance is so appealing…

The R&D Tax Incentive – Are you eligible?

Innovate, and you reduce your tax. That’s the idea behind the Scientific Research and Experimental Development (SR&ED) Tax Incentive. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program.html

It provides R&D tax offsets to encourage businesses to innovate and engage in R&D.

Businesses conducting R&D may be eligible for Tax refunds from the federal and provincial government, for expenses incurred in the SRED phase.

The program is complex but yet available to anyone on conducting R&d.

To register for the tax incentive you must lodge your application within 9 months of your company’s income year.

Each year you must apply to register for the R&D Tax Incentive. This is a self-assessment process, but you will definitely need professional help on filling out those forms.

It’s important that your company keeps adequate records throughout the year to show it carried out eligible activities in incurring the claimed expenditure.

If you’re eligible for the R&D Tax Incentive but not applying for it, you’re leaving cash on the table. We can help you make sure you tick all the relevant boxes so you don’t miss out.

If the government is offering your business financial assistance through tax breaks, take them!

A little perspiration will be worth it

Remember Edison’s words. The ‘perspiration factor’ can’t be avoided. You need to apply for the grants and tax incentives, but the effort can be well worth it. And we’ll share the load with you.

Drop us a line and we’ll make a time to catch up and have a chat about your eligibility and the next steps required.

Call us now