CA 
England
Estonia
Turkiye
Business Incentives & Tax Credits
From SR&ED to Sustainability: Tax Strategy, Engineered.
Government-backed incentives and tax credits are powerful tools to reduce costs, drive innovation, and enhance competitiveness. Below, we outline key programs with precision and clarity to help your business maximize benefits while maintaining compliance.
- Tax Deductions: Deduct eligible SR&ED expenses (salaries, materials, subcontractor costs) from taxable income.
- Calculate allowable expenditures and apply them to reduce current or future net income.
- Basic Rate: 15% ITC for most businesses (non-refundable, reduces tax payable).
- Enhanced Rate: 35% refundable ITC for Canadian-controlled private corporations (CCPCs) on the first $3M of eligible expenses.
- Partnerships: Allocate ITC to eligible partners based on their ownership share.
- 1.Carbon Capture, Utilization, and Storage (CCUS): Credits for technologies that capture and store/repurpose CO₂ emissions.
- 2.Clean Technology: Credits for adopting renewable energy systems (solar, wind, geothermal).
- 3.Clean Hydrogen: Incentives for producing clean hydrogen and ammonia.
- 4.Clean Technology Manufacturing: Support for critical mineral extraction and clean tech manufacturing.
- Non-compliance: Failure to meet standards reduces the credit rate by 10 percentage points and incurs penalties.
- Credit Calculation: Reduce Canadian corporate taxes by the amount of foreign taxes paid on overseas business income.
- Eligibility: Applies to income earned in countries with which Canada has tax treaties.
- Eligibility: Canadian-controlled private corporations (CCPCs) with employees in designated provinces (e.g., Ontario, Alberta).
1 - Scientific Research & Experimental Development (SR&ED)
(Reward businesses conducting innovative R&D in Canada.)
How Your Business Can Benefit:
Investment Tax Credit (ITC):
2 - Clean Economy Investment Tax Credits
(Accelerate Canada's trnasition to a low carbon economy)
Four Eligible Categories:
Labour Requirements:
To qualify for the full credit rate, businesses must meet prevailing wage and apprenticeship standards.
3 - Federal Foreign Business Income Tax Credit
(Prevent double taxation on global earnings.)
How It Works
4 - Canada Carbon Rebate for Small Businesses
(Offset costs tied to federal carbon pricing for eligible small businesses.)
Key Details:
Rebate Calculation:
Total Rebate = (Number of employees in eligible provinces) × (Province-specific payment rate per employee).
Rates vary annually and by province.
Strategy and Analytics
Commercial Statistics & Growth Strategy
Commercial Statistics & Growth Strategy
Read More
Business Incentives & Tax Credits
Business Incentives & Tax Credits
Read More
Business Mergers and Acquisitions (M&A)
Business Mergers and Acquisitions (M&A)
Read More
Sell and Separate-Divestment
Sell and Separate-Divestment
Read More