EDMONTON -- Come the new year, Alberta-based start-ups could be eligible to receive up to 20 per cent of their research and development costs, the province announced in Edmonton Wednesday.
The Innovation Employment Grant will provide phased funding for small and medium-sized businesses: at minimum, eight per cent on a firm’s base expenditures, up to 20 per cent on spending that is above the company’s average over the previous two years.
“This means there is support for these job creators at every stage of their development, including their start-up phase when they aren’t actually reporting profits but they’re in that critical phase that so many start-ups don’t make it through,” Premier Jason Kenney commented.
“That’s why they need this kind of support, and that’s the kind of advice we’ve taken from the Innovation Capital Working Group.”
The Alberta Enterprise Corporation, which has been tasked with supporting new firms get settled, will receive $175 million over the next three years. The amount is equal to the total it has received from the Alberta government since 2008.
Finance Minister Travis Toews said the grant program would continue to set Alberta apart from other Canadian provinces as a place to invest.
"For example, a company investing $250,000 in research and development in Alberta would receive $50,000 of support through the IEG. The same company would receive $28,000 of support in Ontario. While in B.C., it would only receive $25,000, half of the amount of direct support."
Companies will begin to be phased out of the program once their taxable capital reaches $10 million, and fully phased out at $50 million.
The program starts Jan. 1, 2021.
