Posts Tagged ‘government funding’

Delta, BC Government Funding Seminar a Success

NorthBridge would like to thank the attendees, the Delta Chamber of Commerce and the National Research Council (NRC) Concierge Service for helping make yesterday’s breakfast seminar a success!

Jaap Siekman, our Regional Manager of Western Canada, together with Erik Kaas, Innovation Advisor for the NRC Concierge Service, delivered an informative presentation on the multitude of government funding opportunities available to support growth and innovation within companies. Company representatives from various industry sectors were able to learn about the recent advancements in government funding programs, as well as develop an understanding of the programs that best fit their corporate needs and goals.

If you would like more information about what was discussed in the seminar or to hear about upcoming events, please contact us.

New CanExport Program to Support Export Market Development

CanExport is a new government funding program announced on January 5, 2016 that will provide $50 million over the next five years in direct funding to Canadian small and medium-sized enterprises (SMEs) to support new export market development.

Through the CanExport program, companies can receive financial support of 50% up to $99,999 for export marketing activities. Eligible activities need to exceed the company’s core activities and focus on promoting international business development. These may include business travel costs, exhibitions at trade shows, market research, adaptation of marketing materials for new markets, and legal fees associated with a distribution/representation agreement.

In order to be eligible for funding through the CanExport program companies must have 1-250 full time employees and $200,000-$50 million in annual revenue declared in Canada. The CanExport program is open to companies in all sectors with the exception of agriculture and food processing, since companies in these industries are already eligible for export funding through the AgriMarketing program.  Export activities to existing markets are not covered by the CanExport program, but still remain eligible for funding from the Export Market Access (EMA) program.

Newfoundland and Labrador Interactive Digital Media Tax Credit

Originally announced as part of the 2015 Provincial Budget released in April, the government of Newfoundland and Labrador has recently finalized and implemented a new interactive digital media tax credit to support businesses in the competitive digital media industry. The Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit will offer a 40% refundable rate on eligible labour and remuneration costs incurred while developing an eligible product between January 1, 2015 and December 31, 2019.

The credit will be available to taxable, interactive digital media development companies with a permanent establishment in NL who have registered with the NL Film Development Corporation. For a product of such a company to be eligible for the new tax credit, the product will have to meet the following qualifications:

  • The interactive product has the primary purpose to educate, inform, or entertain;
  • The interactive product presents information using at least two of text, sound, and images;
  • The interactive product is intended to be used by individuals for purposes other than interpersonal communication and is non-promotional; and
  • The interactive product must provide feedback to the user, allow the user to control what information is presented and when, and the product must adapt to the user’s needs (if appropriate).

Not all products that meet the above criteria are eligible, so please consult the NLIDM website for a complete explanation of eligibility.

If a product is eligible, the credit can be awarded up to a value of $40,000 per employee, with a maximum of $2,000,000 in labour and remuneration claimable. While employee labour is claimable up to 100% of development time, it should be noted that remuneration costs will only be claimable to a maximum of 65%. Unlike other provincial IDM programs, the NLIDM credit must be claimed in respect of the year that the expenses were incurred and this claim must be submitted to the Minister of Finance within six months of the end of the taxation year.

While the tax credit is currently managed by the Ministry of Finance, it will transition to the CRA beginning in May 2016. This means that digital companies in Newfoundland and Labrador should try to not only take advantage of this new program, but also look at Scientific Research and Experimental Development (SR&ED) tax credits, which are also filed with the CRA. With a 15% provincial SR&ED top-up available, companies that submit claims under both these programs can benefit from significant tax returns to continue innovative product development.

Funding Webinar: Optimizing Returns from Multiple Government Funding Sources

We invite you to join us for our upcoming information session!

Domestic and international competition is forcing Canadian businesses to develop new or improved products, increase productivity and expand sales in global markets. Financing for innovation or growth has always been a challenge for many companies in Canada. Both the federal and provincial governments provide their financial support through over $20 billion in various funding programs each year. Sourcing funding from both SR&ED tax credits and other direct government incentive programs can give companies the edge they need to take their business to the next level.

WHEN: Thursday, November 26, 2015
WHERE: Online @ 11:00am EST

Learn About:

  • Types of government funding opportunities
  • Eligibility for financing, funding, and tax credits
  • Optimizing your returns from multiple government funding programs
  • Compliance issues between SR&ED and other government funding sources

Click here to register for this informative webinar!

Speaker

Gerry Fung, CPA, CMA, P.Eng.
Group Manager, Business Services

How the New Federal Cabinet Might Impact R&D Funding in Canada

On November 4th, Prime Minister Justin Trudeau’s first, thirty-person cabinet was sworn into office. This group includes two ministers who will hold research and development-related portfolios in the new government. Kirsty Duncan, a medical geographer and former professor at the University of Windsor and the University of Toronto, was named Minister of Science, replacing outgoing minister Ed Holder, who had served in that capacity since March 2014. Professor Duncan served on the Nobel prize-winning Intergovernmental Panel on Climate Change and has been a Member of Parliament since 2008.

Navdeep Singh Bains will head the renamed Industry Canada, now the Ministry of Innovation, Science and Economic Development, previously helmed by James Moore. The new minister is a former professor at Ryerson University’s Ted Rogers School of Management and a former accountant at the Ford Motor Company of Canada. He previously served as an MP from 2004-2011 before being re-elected in 2015.

The new Ministry of Innovation, Science, and Economic Development reflects a shift in the organization of the ministry. Previously, the six regional development agencies responsible for administering regional government funding programs, including the Atlantic Canada Opportunities Agency (ACOA), Western Economic Diversification Canada (WD), and the Federal Economic Development Agency for Southern Ontario (FedDev), were assigned to individual cabinet ministers. In the new government, Professor Bains will be the portfolio minister responsible for the six agencies.

The appointments, in addition to the centralization of the 6 regional development agencies, may indicate a re-emphasis on research and development and its contribution to Canadian economic development. We will continue to outline what impact these governmental changes will have on the state of government funding in Canada as more details become available.

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  • NorthBridge Consultants' Government Funding Blog is dedicated to bringing businesses news and information to help them identify and access the most appropriate government funding programs.

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