The 2021 Federal Budget
On April 19th, 2021, the federal government published its 2021 budget, focused primarily on addressing the third wave of the COVID-19 pandemic and economic recovery in Canada. The budget’s major commitment is directing funding towards the technology and innovation sectors as a way to support recovery. Budget proposals include: extending business and income support measures into the fall, investments to create jobs, increased focus on clean technology, and plans to accelerate investments in the digital transformation of small and medium-sized businesses.
According to Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, the budget addresses three fundamental challenges:
- “First, we need to conquer COVID. That means buying vaccines and supporting provincial healthcare systems. It means enforcing our quarantine rules at the border and within the country. It means providing Canadians and Canadian businesses with the support they need to get through these final, third-wave lockdowns, and to come roaring back when the economy fully reopens.
- Second, we must punch our way out of the COVID recession. That means ensuring lost jobs are recovered as swiftly as possible, and that hard-hit businesses rebound quickly and are able to flourish. It means providing support where COVID has struck hardest – to women and young people and low-wage workers, and to small and medium-sized businesses, especially in hospitality and tourism.
- The final challenge is to build a better, fairer, more prosperous, more innovative future. That means investing in Canada’s green transition and the green jobs that go with it; in Canada’s digital transformation and Canadian innovation; and in building infrastructure for a dynamic, growing country.” Source: Government of Canada, Foreword, Canada 2021 Budget
Our perspective on the 2021 Budget relating to innovation & job creation
Now is the best time to speak with us to ensure that you are taking full advantage of the SR&ED Tax Credit program including properly claiming in-light of the wage subsidy and other incentives.
It has been two years since the government’s last budget was released in 2019. Due to the COVID-19 pandemic, there was no budget released in 2020, making this year’s release widely-anticipated and one of the most crucial budgets to date. The budget’s purpose is to provide a clear pathway and action plan for economic recovery in Canada by building a stronger and more resilient economy. While the 2021 Federal Budget does not address the SR&ED Program specifically, it does discuss innovation and the importance of supporting innovation in Canada.
Consistent with the changes announced previously in the 2019 Federal Budget, all Canada Controlled Private Corporations (CCPC) with less than $10 million in taxable capital will receive a refundable tax credit at the enhanced rate of 35%* regardless of their taxable income. (*35% of the first $3M in eligible expenditures – with the addition of overhead and provincial tax incentive – this may be >75% of salary expenditures for employees performing R&D).
Although some of the above mentioned measures will decrease SR&ED tax credits, strategically combining the available government funding is worthwhile and will have an overall positive impact for all Canadian businesses.
Our perspective of the 2021 Budget in relation to Government Grants
The 2021 budget proposes a significant amount of funding to help support Canadians and Canadian businesses as they try to recover from the impacts of the COVID-19 pandemic. This includes extensions to existing programs and the creation of new programs to support fast-growing, innovative Canadian SMEs, enterprises and start-ups.
Ayming’s team of funding experts can help you make sense of the complex and detailed budget by evaluating what these announcements mean for you and your business. Our debrief is aimed at assisting leaders in understanding these new realities and developing a clear action plan for preparation and growth in the future.
Call us today to gain a comprehensive understanding on all the government funding opportunities available specifically to your company, you may be surprised at the funding options we help you uncover.
Ayming secures $1.5 billion annually for its clients, and here are just a few more reasons why partnering with us can provide substantial financial benefits to your company:
- Over 30 years’ consulting experience in tax credits and grant funding.
- Global presence in 15 countries with over 20,000 happy clients.
- Ayming is the first Canadian company to establish a grant practice nationally.
- Our proprietary artificial intelligence (AI) driven database of grants provides real time access to thousands of programs, including a custom snapshot of all federal and provincial grants currently available to your specific business.
- We provide full support in the case of a SR&ED audit or government review, at no extra charge.
- With Ayming, clients do not have to wait for the government agencies to process their grant and SR&ED applications in order to receive money immediately. Ayming has an exclusive fund of $150 million which provides accelerated access to your funding through our attractive financing offer.
- No risk, success-fee remuneration available.
- Ayming boasts a 98.5% success rate on all government claims submitted.