Kitchener, Ontario, August 28, 2013… The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, and Peter Braid, Member of Parliament for Kitchener, participated in an event and roundtable discussion with high-tech industry business owners at Communitech Hub to highlight the important tax relief and other measures available to Canadian small businesses. These incentives help small businesses across Canada to create jobs and economic growth.
The Apprenticeship Job Creation Tax Credit (AJCTC) is one of the Harper Government’s key measures aimed at providing support to Canadians, including programs and services for those entering the labour market and those looking to upgrade their skills and training. The AJCTC provides businesses a maximum credit of $2,000 per year for the first two year term of hire for each eligible apprentice. The Government also recognizes the importance of supporting the job creation capacity of small businesses by giving them additional incentives to hire new apprentices in eligible trades. As of October 1, 2012, approximately 13,250 employers used the credit to deduct more than $108 million on their income tax returns for the last tax year.
“Our Government has made real progress in offering tax relief measures that support a more skilled and educated workforce. These initiatives are helping Canada build a strong foundation for future economic growth and job creation,” said Minister Findlay. “Through tax relief measures, grants and support for training programs, we are encouraging apprenticeships and careers in the skilled trades.”
Economic Action Plan 2011 introduced the Hiring Credit for Small Business (HCSB).The HCSB stimulates new employment and supports small businesses, while providing relief from the employer’s share of employment insurance (EI) premiums by crediting up to $1,000 on their payroll account. As of August 2, 2013, over $209 million has been credited to over 549,000 eligible employers.
“Our Government is continually working to improve business conditions in Canada, and one of the ways to do this is by keeping taxes low for job-creating businesses,” said Mr. Braid. “Measures like the Apprenticeship Job Creation Tax Credit and the Hiring Credit for Small Businesses help reduce the tax burden on employers and make it easier for companies to grow. In an uncertain global economy, our Government’s tax initiatives for jobs and growth is working and serving Canadians well.”
This tax relief builds on the support provided to apprentices through the Apprentice Incentive Grant provided in Budget 2006 and the Apprenticeship Completion Grant, which was introduced in Budget 2009.
The Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program administered by the Canada Revenue Agency (CRA) that encourages Canadian businesses of all sizes and in all sectors to conduct research and development in Canada.
The SR&ED program allows Canadian-controlled private corporations, to earn a refundable Investment Tax Credit (ITC) of 35% on up to $3 million in qualified SR&ED expenditures for SR&ED carried out in Canada. The ITC is fully refundable on qualified SR&ED current expenditures and 40% refundable on qualified SR&ED capital expenditures.
For more information on the Hiring Credit for Small Business, go to www.cra.gc.ca/hiringcredit.
For more information on the Apprenticeship Job Creation Tax Credit, and other investment tax credits, go to www.cra.gc.ca/smallbusiness and select “Investment Tax Credit.”
For more information on SR&ED, go to www.cra.gc.ca/sred.