Canada: Innovation employment grants (Alberta)

Alberta-based companies may now be eligible for a new refundable tax credit.

Alberta-based companies may now be eligible for a new refundable tax credit.

The new innovation employment grant (effective 1 January 2021) in Alberta provides phased funding for qualifying small and medium-sized corporations.

Corporations that qualify for the grant could receive an amount equal to 8% of their base research and development (R&D) expenditures—calculated as the corporation's average qualifying R&D spending over the previous two years—and 20% of spending that is above that base amount.

Taxpayers may qualify for the grant on up to $4 million* in annual R&D spending.

Read a June 2021 report prepared by the KPMG member firm in Canada

*$=Canadian dollar


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.