Canadian companies involved in R&D can now apply for new innovation funding.
Canada's new Strategic Innovation Fund, which provides contributions to eligible Canadian companies, is open to all industries and is part of the government’s Innovation and Skills Plan. Companies eligible for this new funding, which has a total budget of $1.26 billion over five years, should consider whether they will undertake any projects in the near future that may be able to benefit from this new fund.
The new fund includes support for projects that:
Who can apply?
To be eligible for the fund under Streams 1, 2 and 3, companies must be a for-profit corporation that is incorporated in Canada, and that proposes to carry on business in Canada.
The applicants eligible for the fund under Stream 4 include a network or a consortium. The consortium has members that may include Canadian universities, research institutes, for-profit corporations and not-for-profit entities, among others. For a consortium, there must be a lead applicant that will be responsible to submit a project application and manage the project. The lead applicant must also be incorporated in Canada, carry on business in Canada and propose to conduct industrial research and technology demonstration activities.
How the application works
To apply for support under the new Strategic Innovation Fund, companies must complete a Statement of Interest Form to provide a high-level overview of their project. The government will review these applications and provide feedback on whether program funding may be available and whether it is advisable for the applicant to advance to the next application stage.
Companies that proceed to the second step of the application must then develop and submit a detailed Application Form. The information provided on this form will be used to complete a due diligence and benefits assessment.
The fund will provide contributions based on the minimum amount required to allow an eligible activity to proceed. Projects that qualify under Streams 1, 2 or 3 may be repayable in certain circumstances.
We can help
KPMG's Tax Incentives practice can help you determine whether the Strategic Innovation Fund is a fit for your you and whether other R&D tax credits or funding may be available to your business.
For more information, contact your KPMG adviser.