Last month we shared different tax credits available across Canada. However, we’ve only covered federal tax credits so far, and luckily for entrepreneurs, provincial governments have even more tax credits only available to local businesses. Each province has goals and industries specific to the area, but the overarching objective of tax credits is to encourage businesses to grow in that province. Below is an overview of some available tax credits your business may be eligible for depending on your location.
Alberta
- Film and Television Tax Credit – The film and television tax credit supports eligible Alberta film and screen-based productions. This is in addition to the federal government film tax credits that are available across Canada. Alberta recently increased the Film and Television Tax Credit to encourage more productions to come to the province.
British Columbia
- Increased Employment Incentive – This incentive is a tax credit which covers up to 15% of the employer’s total remuneration for all eligible employees, to support BC Businesses in continually hiring eligible workers which benefits the company, the employee, and the economy.
- BC also has its own Film and Television, SR&ED, and Interactive Digital Media tax credits. Check out the full list here.
Manitoba
- Manitoba Interactive Digital Media Tax Credit – Companies based in the province can earn up to a 40% refundable income tax credit for labour and some marketing expenses on eligible interactive digital media projects.
- Manitoba even offers tax credits in various fields such as Cultural Industries and Green Energy. See the full list here.
New Brunswick
- New Brunswick’s Research and Development Tax Credit is fully refundable, which means even early-stage startups that do not have taxable income can still take advantage of the program.
Newfoundland and Labrador
- Interactive Digital Media (IDM) Tax Credit – For companies developing IDM products within the province. Corporations can receive up to 40% of qualifying expenditures to encourage growth within the digital economy in Newfoundland and Labrador.
- The full list of business tax credits, incentives, and benefits offered by Newfoundland and Labrador can be found here. The province also has unique incentives for businesses under the Economic Diversification and Growth Enterprises (EDGE) Program which is especially beneficial for startups.
Nova Scotia
- Capital Investment Tax Credit – This tax credit was created for corporations for capital equipment purchased for use in Nova Scotia as part of an approved project. It supports businesses to stay in Nova Scotia.
- While Nova Scotia also offers its own Digital Media Tax Credit, they also have a separate Digital Animation Tax Credit for the development of digital animation. Check out the full list of programs in Nova Scotia here.
Ontario
- – This tax credit is available to businesses that hire students in a co-operative education program at an Ontario university or college. Corporations can claim up to 25% of eligible expenditures (30% for small businesses).
- Ontario also offers a full suite of cultural media tax credits, plus programs for Innovation and R&D. Here is the full list of business tax credits in the province.
Prince Edward Island
- Enriched Investment Tax Credit – This credit applies to certain capital investments made by manufacturing and processing businesses in Prince Edward Island.
- With its location on the Gulf of St. Lawrence, PEI boasts a thriving marine industry and companies may qualify for the Advanced Marine Technology Tax Rebate. Check out the full list of programs available in the province.
Quebec
- Development of E-Business – Unique to Quebec, this program provides tax credits to companies working on specialized innovation in the IT sector. Businesses can receive a tax credit for the salaries of eligible employees.
- Learn more about tax incentives for businesses in the province from Invest Quebec.
Saskatchewan
- Research and Development Tax Credit – Saskatchewan also offers an R&D tax credit, but that is just part of its programs for the technology industry. They also offer tax incentives for Commercial Innovation and for technology investors.
- Here’s the full list of business tax credits and incentives for Saskatchewan.
These are just a few highlights of the most popular tax credits in each province – there are many more that you and your business may be eligible for. Canada’s territories also offer incentives for local businesses and individuals and corporations that invest in them. We do recommend that you discuss with your accountant or a qualified professional to find the tax credits that work best for you.
Have you received a tax credit and need the capital to continue work, but haven’t received the funding yet? You may qualify for our financing programs – check it out here. If you have any questions don’t hesitate to reach out to us at [email protected].
