Posts Tagged ‘Economy’

Upcoming Two-Day Canadian Food and Drink Summit


The survival and growth of the food industry in Canada is dependent on the environmentally sustainable development of safe, healthy food. The Canadian Food and Drink Summit 2015 is a two-day event from October 26-27 in Toronto that is geared towards international professionals in the food industry who are interested in learning and discussing new ideas related to the national food sector as well as global issues, such as food security.

At the Summit, attendees will have the opportunity to hear about emerging food trends and research while also discovering new ways to improve industry prosperity without compromising the safety, security, and healthiness of food and the environment on which it is produced and manufactured. Innovative development is another trend that will be discussed at this event, and innovation related to drink and beverage is a featured topic.

In addition to these presentations, attendees will be given ample opportunity to network with other professionals in the food industry. The attendees will come from a variety of backgrounds, including producers, processors, regulators, and retailers.

Summary of Provincial and Territorial R&D Tax Credits

The Canada Revenue Agency has recently released the most current summary of provincial and territorial R&D tax credits. Recent program developments by region include:


  • As of January 1, 2014, the definition of ‘eligible expenditures’ has been amended in line with the federal reduction in the prescribed proxy amount to 55%, and the reduction to 80% for contract payments (except contract payments to eligible educational institutions in Manitoba); however, despite the elimination of capital expenditures from the federal tax credit, these costs remain eligible under the Manitoba tax credit.
  • Currently, non-refundable tax credits can be carried back 3 years. Non-refundable tax credits can be carried forward 10 years for tax years ended after 2003 or 7 years for tax years ended before 2004 and applied against the Manitoba income taxes payable. The Manitoba 2015-2016 Budget and Bill 36 propose to extend the carry forward period for non-refundable tax credits to 20 years for tax years ended after 2005.


  • The Saskatchewan non-refundable R&D tax credit rate was reduced from 15% to 10% for all eligible expenditures after March 31, 2015.

British Columbia

  • Credit has been extended three years to September 1, 2017.


  • As per Quebec’s 2014 budget, all R&D tax credit rates were reduced by 20% for all eligible expenditures incurred after June 4, 2014.
  • A minimum expenditure threshold has been implemented for fiscal years beginning on or after December 3, 2014. With corporate assets below $50 million in the previous year, the first $50,000 of R&D is excluded from eligibility. This minimum threshold will increase linearly up to $225,000 for corporations with assets of $75 million or more in the previous year.
  • All R&D credits (including pre-competitive research, university and public institute research, and research consortium contributions/ rights) have been standardized with the R&D wage tax credit for fiscal years beginning on or after December 3, 2014 to a base rate of 14% (CCPCs with assets below $50 million will qualify for a rate of 30% on the first $3 million of eligible expenditures).
  • In line with amendments to the federal SR&ED tax credit, capital expenditures incurred after 2013 are not eligible. In addition, claims filed after 2013 will be subject to a $1,000 penalty for missing, incomplete, or inaccurate information.
  • As of June 4, 2014, the 10% increase in the R&D wage tax credit for biopharmaceutical corporations is eliminated (previously qualified corporations will continue to receive the benefit at a decreased rate of 8%)


The following table provides a breakdown of provincial R&D tax credits as of June 30, 2015.


Province/ Program Rate Deadline
Newfoundland and Labrador 15% refundable 12 months after year end
Nova Scotia 15% refundable 18 months after year end
New Brunswick 15% refundable (expenditures incurred after 2003)10% non-refundable (expenditures incurred before 2003) N/A
Manitoba 20% non-refundable (expenditures incurred after March 8, 2005)15% non-refundable (expenditures incurred before March 9, 2005); however, the 2010 Budget extended refundability of the Manitoba R&D tax credit to one-half of eligible expenditures for in-house R&D expenditures not undertaken by an institute in Manitoba and incurred after 2012) 12 months after year end
Saskatchewan 10% non refundable (expenditures after March 31, 2015)15% refundable for all eligible expenditures occurring between March 19, 2009 and March 31, 2012 N/A
Alberta 10% refundable (on up to $4 million in eligible expenses) 15 months after year end
British Columbia 10% non-refundable; refundable for CCPCs up to 10% of the expenditure limit 18 months after year end
Yukon 15% refundable 12 months after year end
Ontario Innovation Tax Credit (OITC) 10% refundable (annual expenditure limit of $3M: Phased out if taxable paid-up capital (PUC) for previous year exceeds $25M or is between $500,000 to $800,000; expenditure limit is eliminated when PUC reaches $50M) N/A
Ontario Business-Research Institute Tax Credit (OBRITC) 20% refundable (qualified expenditures are capped at $20 million annually among associated group of corporations) N/A
Ontario Research and Development Tax Credit (ORDTC) 4.5% non-refundable N/A
R&D Wage tax credit; Tax credit on fees paid to a research consortium; Precompetitive tax credits
14% to 30% (after June 4, 2014)17.5% to 37.5% for costs incurred between April 22, 2005 to June 4, 2014  N/A


Upcoming Funding Seminar for the Agri-Food Sector

On Tuesday, June 16, 2015, from 1:00 p.m. to 2:30 p.m., NorthBridge Consultants and Excellence in Manufacturing Consortium (EMC) is hosting a free seminar in Mississauga, Ontario, to help companies in the agri-food sector better understand government funding programs and Scientific Research and Experimental Development (SR&ED) tax credits, and especially how multiple government funding programs can be leveraged to execute business strategies.

The seminar will provide an overview of the SR&ED program, including recent modifications to the program. This seminar will equip engineers, technical personnel, business owners, CEOs/CFOs, and senior managers with the right tools to ensure compliance with SR&ED regulations; it will also provide details on how to ensure that contemporaneous documentation is generated as per SR&ED best practices.

Additionally, the seminar will deliver information pertaining to provincial and federal government initiatives that target expansion, innovation, exporting, hiring, and training.  Instruction will be provided on how to allocate and separate costs between programs, and case studies will be reviewed to illustrate examples of various funding opportunities.

For more information or to register for this event, please contact Bren de Leeuw (Director – Field Operations Canada) at or 519-372-6009.

Job Creation A Priority for All Ontario Electoral Candidates

Wednesday marks the beginning of the 2014 Ontario election campaign as Lieutenant Governor David Onley signed the official election writs.  Although all of the candidates began campaigning when NDP leader Andrea Horwath announced she would not support the proposed provincial budget, this signing was necessary to formally complete the process. The party leaders wasted no time beginning their tours of the province, and already one thing has become abundantly clear: no matter the outcome of this election, job creation will be a top priority.

Finance Minister Charles Sousa tabled the proposed provincial budget last Thursday. Among the initiatives listed in the budget was a $2.5 billion “Jobs and Prosperity Fund” aimed at supporting job creation across the country. Despite both the NDP and Conservatives’ lack of support for the budget, it appears that Wynne’s opponents share similar views on job creation.

Progressive Conservative leader Tim Hudak was quoted today as saying that his campaign will centre on “laying out in detail how [his] plan is going to work to get people back to work.”  Similarly, Andrea Horwath of the New Democrat Party has placed jobs and affordability for families at the core of her campaign.  Horwath announced that, if elected, the NDP will implement a Job Creation Tax Credit program to offer incentive to businesses to create jobs at home.  During a visit to Niagara Falls, Horwath noted her increasing concern for high rates of unemployment in Ontario, indicating her commitment to working with “the real job creators” to address the problem.  The new initiative, if implemented, will cover 10% of a new hire’s salary to a maximum of $5000 per job.

It appears that even the most divided of electoral candidates can agree that jobs must be a provincial priority.  We may be able to look forward to some serious investment in job creation very soon.

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New Innovation Initiative to Support SMEs in Western Canada

Small to medium sized companies in Western Canada can receive funding from the Western Innovation Initiative (WINN), recently announced by Western Economic Development Canada. The WINN program will be releasing application information starting November 9, 2013.

The WINN program spans five years and has $100 million to support SMEs in Western Canada. The funds will be delivered as a repayable contribution, up to $3.5 million per project and a maximum of $7.5 million per company. The purpose of this program is to help commercialize innovative products, processes, and services. This program aligns with the government’s objectives of job creation, growth, and innovation in the Canadian economy.

Eligible companies are: incorporated in Canada, operating in the Western provinces, at least one year since incorporation, less than 500 employees, and planning to commercialize an innovative product, process or service.

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