Canada Credits & Incentives 2023 Blog
Canada Credits & Incentives
In the first edition of the Canada Credits and Incentives Update Report, it is highlighted that companies in 2023 will face many economic, social, and geopolitical uncertainties that will require them to rethink many aspects of their businesses. This report focuses on key initiatives and funding opportunities available for 2023 to help businesses and communities understand the programs and policies that support investments.
One of the key initiatives mentioned in the report is funding opportunities. Canada provides many funding opportunities for businesses, whether they are in the early stages of research, conducting technology demonstration or growing their business and exporting. The Strategic Innovation Fund (SIF) and Sustainable Development Technology Canada (SDTC) are some of the main programs available to support innovation in Canada’s leading industries. The Low Carbon Economy Fund (LCEF) is another program that supports projects that help to reduce Canada’s greenhouse gas emissions and generate clean growth. These programs offer businesses the funding they need to develop and commercialize clean technology.
Tax incentives are another way the government of Canada is encouraging businesses to invest in clean technology. The Federal Budget of 2021 proposed to reduce the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies. This tax reduction will create jobs and support the growth of clean technology manufacturing in Canada. The reduced tax rates will be gradually phased out for taxation years beginning in 2029 and fully phased out for taxation years beginning after 2031.
Canada Innovation
The Clean Growth Hub is another tool offered by the government to regroup information, resources, and advice on federal support for clean technology in Canada. This hub can point businesses to the assistance that fits their needs, including funding and support opportunities.
Finally, the report highlights that the number of personnel dedicated to research and development has increased by 10% in the corporate sector since 2015. The share of foreign-controlled companies in Canada employing researchers has also increased, indicating a certain attraction for these two provinces to locate their R&D departments there. Quebec and Ontario employ a large portion of these personnel in the corporate sector.
In conclusion, Canada's initiatives and funding opportunities for clean technology development and commercialization make it an attractive destination for businesses looking to invest in this sector. Collaboration between government and business is vital to stimulate investment and value-added job creation. With the programs and policies in place, businesses in Canada can take advantage of these opportunities to create a greener future.
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