A number of government programs and financial incentives are available to eligible manufacturers to help offset hiring, job training, business development and research costs. Some of the key programs are described below and other Financial Incentives can be found in the Advantage Whitby section.
|Human Resources & Training|
|Research and Development|
Apprenticeship Job Creation Tax Credit (Canada) - a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to apprentices in their first two years of their apprenticeship contract. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice.
Apprenticeship Training Tax Credit (Ontario) - available to employers who hire and train apprentices in certain skilled trades. It reimburses employers for 35% of eligible expenditures and small businesses 45%. The maximum annual amount of the tax credit is $10,000 per qualifying apprentice, during the first 48 months of an apprenticeship program.
Co-Operative Education Tax Credit (CETC) - available to employers who hire students enrolled in a co-operative education program at an Ontario university or college. The CETC is based on salaries and wages paid to a student in a co-operative education work placement. The maximum credit for each work placement is $3,000. Most work placements are for a minimum employment period of 10 weeks up to a maximum of four months.
Connect Canada Internship Program - links graduate students and Canadian companies for research placements. Internships are funded by $5,000 from the partnership company and will be matched by Connect Canada.
Employer Signing Bonus - encourages employers in trades to register new apprentices in sectors where there is a high demand for skilled workers. This $2,000 initiative assists employers to hire and register apprentices, who have left school and require upgrading to meet the registration standards for apprenticeship training.
Export Market Access - A Global Expansion Program - assists small to medium sized organizations (SMEs) with accessing and expanding their growth in foreign markets. If your company has five or more employees, and annual sales of $500,000 or more, you may qualify for up to 50% of eligible costs incurred to develop export sales. Eligible activities include market research, marketing tools, direct contacts, and foreign bidding projects.
Colleges Ontario Network for Industry Innovation (CONII) - financial support provided to Ontario colleges working with business and industry to enable them to provide quicker access to the expertise of Ontario's top researchers and the most state-of-the-art equipment and research tools available.
Digital Technology Adoption Pilot Program (DTAPP) - provides advisory services and competitiveness of small and medium-sized enterprises, up to 500 employees, across Canada through the adoption of digital technologies. Through new and existing networks and relationships with colleges and organizations across Canada, the DTAPP team provides SMEs access to expertise in the digital technology adoption field. The DTAPP team also works with other government organizations to leverage the synergies of all available Digital Economy Strategy resources. This $80M pilot program will run unti March 31, 2014.
First Job Industrial Internship Program - an initiative to help Ontario companies hire knowledgeable, highly-skilled graduates from Ontario colleges and universities, in the fields of science, technology and entrepreneurship. Employment opportunities are in research and development, with the goal of developing new products, services and processes and giving host companies the chance to expand their capabilities. Companies receive awawrds of up to a maximum of $25,000. Host companies provide the remaining salary and benefits. Primary consideration will be given to technically-progressive, small/medium-sized companies.
Industrial R&D Fellowship - contributes $30,000 per year for two years towards salary for companies that hire recent doctoral graduates in science and engineering to conduct industrial R&D.
Industrial Research Assistance Program (IRAP) - is directed towards small and medium sized enterprises (SMEs) located in Canada, and is designed to assist in enhancing innovative capabilities. The program is an excellent source of advisory services, information and financial assistance to SMEs that are developing new products, processes or services. Assistance is provided to for profit businesses with less than 500 employees. IRAP is delivered by about 260 Industrial Technology Advisors (ITAs) who are located across Canada.
MITACS Accelerate - a national internship program which connects companies with research expertise in Canada's universities from applied sciences, engineering, social sciences and business to arts, life sciences, and more. For each four-month internship unit, MITACS matches your organization's contribution of $7,500, through the support of federal and provincial funding partners. Per four month unit, the intern receives a minimum stipend of $10,000, with the remaining $5,000 supporting other costs associated with the research.
Ontario Innovation Tax Credit (OITC) - a refundable tax credit that is available to all Ontario corporations that perform scientific research and experimental development (SR&ED). The OITC is calculated as 10% of qualifying SR&ED expenses. Qualifying expenses are 100% of current expenses and 40% of capital expenses, with a maximum annual credit of $300,000.
Ontario Research and Development Tax Credit (ORDTC) - a non-refundable tax credit available to corporations focused on scientific research & experimental development (SR&ED) work in Ontario. The ORDTC provides a 4.5% tax credit based on eligible SR&ED expenses occurring in Ontario.
Scientific Research & Experimental Development (SR&ED) - a federal tax incentive program to encourage Canadian businesses to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. Claimants can apply for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts. A Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35%, up to the first $3 million of qualified expenditures for SR&ED in Canada, and 20% on any excess amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20% of qualified expenditures for SR&ED carried out in Canada.