Government Financial Incentive Programs available to Software Industries at Windsor

Select Government Financial Incentive Programs available to Software Industries at Windsor

Wage Subsidy Programs/Tax Credits/Training

A. FEDERAL GOVERNMENT

Job Creation Partnerships
The Job Creation Partnerships (JCP) employment benefit is a program designed to support projects developed by sponsors that create jobs that will provide insured participants (E.I. Claimants) with opportunities to gain meaningful work experience. Funding may be provided to sponsors/employers to cover such overhead costs as wages and employment related costs and eligible expenses negotiated with program officials. Funding may be provided, on a cost-shared basis, for capital costs to a maximum of $1 million per year where such costs are essential to the achievement of objectives.
http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/epb/sid/cia/grants/jcp/desc_jcp.shtml&hs=jzp

Opportunities Fund
The program is designed to assist persons with disabilities to prepare for and obtain employment or self-employment as well as to develop the skills necessary to maintain that new employment. Funding may be provided to cover costs such as participant wages or related employer costs and it may also be provided to cover overhead costs related to planning, organizing, operating, delivering and evaluating approved activities, including costs such as staff wages and employment related costs. Eligible expenses will be negotiated with program officials.
http://www.sdc.gc.ca/en/epb/sid/cia/grants/of/desc_of.shtml

Apprenticeship Job Creation Tax Credit
This is an investment tax credit equal to 10% of salaries and wages paid to eligible apprentices on or after May 2, 1006 to a maximum credit of $2000 per year per apprenticeship. The credit can be used to reduce federal taxes payable. Unused investment can be carried back three years to recover federal taxes previously paid or carried forward 20 years to reduce taxes payable in future years. This federal credit may be claimed in addition to the Ontario Apprenticeship Training Tax Credit (see below). Employers who qualify under both programs may receive tax credits up to $7000 per year per apprentice.
http://www.cra-arc.gc.ca/whatsnew/apprenticeship-e.html

B. PROVINCIAL GOVERNMENT

Ontario Apprenticeship Training Tax Credit
Employers are encouraged to hire and train apprentices in certain skilled trades (designated service, construction, industrial and motive power trades). Apprentices must be hired before January 1, 2008. There is a 25% refundable tax credit on eligible expenditures incurred with respect to eligible apprentices. For businesses with total payroll costs not exceeding $400,000, the tax credit rate is increased to 30%. An employer is eligible for a tax credit of up to $5,000 per year per eligible apprentice to a maximum of $15,000 over the first 36 months of the apprenticeship.
http://www.edu.gov.on.ca/eng/tcu/employers/taxcredit/calculator.asp

Targeted Wage Subsidies Program
This program provides a subsidy of wages and other costs to hire new employees. The subsidy covers up to 60% of wages. The duration of the subsidies agreement may last up to 78 weeks. Eligible workers must be unemployed, and currently receiving or have received employment insurance benefits in the last three years.
http://www.hrsdc.gc.ca/en/epb/sid/cia/grants/tws/desc_tws.shtml

Ontario Co-operative Education Tax Credit (CETC)
The CETC is a refundable tax credit of 10% (15% for companies whose total payroll does not exceed $400,000) for businesses hiring students enrolled in recognized post-secondary education programs. This credit will first reduce Ontario tax payable for the year and any excess will be refunded. The maximum credit is $1,000 for each work placement. Work placements must be a minimum of 10 weeks and the maximum employment period is four months.
http://www.2ontario.com/software/government_programs_progdetails.asp?pID=43

Ontario Employer Health Tax Exemption
Employers are exempt from paying Employer Health Tax on the first $400,000 of annual total Ontario remuneration.
http://www.fin.gov.on.ca/english/resources/smallbusiness/register_eht.html

Ontario Job Connect
This program provides recruiting services and skills assessment to companies looking to hire and provide on-the-job training to people looking for work. The program offers an employer a training re-imbursement up to $4000 (maximum) over a period of 6 months. Subsidy amounts are negotiated on an individual basis and vary depending on the training requirements of the position and the skills of the individual.
www.edu.gov.on.ca/eng/training/cepp/aboutjc.html

Ontario Summer Jobs Service
This program provides wage support of $2 per hour for jobs lasting up to 16 weeks during the summer months.
www.edu.gov.on.ca/eng/document/brochure/summerjobs.html

Ontario Works
Delivered by municipal administrators, Ontario Works assists social assistance recipients in finding and securing employment. Participating qualified companies may receive financial incentives for up to six months to offset costs associated with additional training. There is no limit to the number of employees hired through this program. The amount of the government contribution varies depending on the wage paid by the employer.
www.cfcs.gov.on.ca/CFCS/en/programs/IES/OntarioWorks/Publications/broch-employers.htm


Research and Development Financial Assistance/Tax Credits

Industrial Research Assistance Program (IRAP)
Assistance is provided to Canadian small and medium-sized enterprises (SMEs) to help them meet the technological challenges they face in delivering new products, processes or services. The program is delivered by a network of Industrial Technology Advisors who provide both knowledge-based innovation assistance to SMEs and a cost-sharing program to aid in funding for client innovation activities (up to 50% of certain project research and development costs to a maximum of $500,000, depending on the project).
http://irap-pari.nrc-cnrc.gc.ca

Ontario Business-Research Institute Tax Credit
A 20% refundable tax credit for scientific research and experimental development (SR&ED) expenditures under an eligible contract with an eligible research institute. The maximum tax credit is $4 million. This tax credit can be claimed in addition to the 10% Ontario Innovation Tax Credit for a combined credit of 30%. For more information, see Tax Legislation Bulletin, January 2000.
http://www.rev.gov.on.ca/english/credit/obritc/

Ontario Innovation Tax Credit
A 10% refundable tax credit is available to corporations that make expenditures on scientific research and experimental development. The maximum claim is $200,000 per taxation year.
http://www.rev.gov.on.ca/english/credit/oitc/

Ontario Retail Sales Tax Exemption on R&D and Manufacturing Equipment
Exemptions are provided on equipment used primarily in manufacturing, exclusively for R&D, or for a combination of the two. For more information, please refer to the list of exemptions in the Retail Sales Tax Act.
http://www.rev.gov.on.ca/english/guides/rst/pdf/400.pdf

Scientific Research & Experimental Development (SR&ED) Tax Incentive Program
This federal tax incentive program encourages businesses of all sizes and in all sectors to conduct research and development in Canada. Canadian-controlled businesses can receive an investment tax credit of 20% (or 35% for corporations with less than $200,000 of taxable income) for qualifying expenditures (wages, materials, machinery, equipment, some overhead) related to SR&ED projects.
www.cra-arc.gc.ca/taxcredit/sred/menu-e.html


General Financial Assistance Programs

Advanced Manufacturing Investment Strategy (AMIS)
The Advanced Manufacturing Investment Strategy (AMIS) is a $500 million repayable loan program to encourage companies to invest in leading edge technologies and processes that will increase productivity and competitiveness. It is administered through the Ontario Ministry of Economic Development and Trade (MEDT). The goal of the AMIS program is to increase economic growth by stimulating private sector investment in innovation and leading edge technologies and processes across a range of sectors. Applications to the Advanced Manufacturing Investment Strategy (AMIS) will be sought through a competitive “Call for Proposals” process. This means that even if a proposal meets all of the program’s objectives and criteria, there is no guarantee that funding will be awarded, as there may be more projects that more effectively meet the program’s objectives and criteria. MEDT staff will meet with individual companies to conduct a pre-assessment of the company’s eligibility.

Business Development Bank of Canada (BDC) Services
BDC provides financial and consulting services to small and medium-sized businesses with a focus on technology and export sectors. Available programs include Co-Vision, Innovation Financing and the Productivity Plus Loan.
www.bdc.ca

Canada Small Business Financing Program
This program provides assistance to small businesses in obtaining, through a qualified lender, term loans and capital leases of up to $250,000 to help finance fixed asset needs. To qualify, the estimated gross annual revenues generated from all the operations within the small business of the borrower must not exceed $5,000,000 for the business's fiscal year during which the CSBF loan is approved.
http://strategis.ic.gc.ca/epic/internet/incsbfp-pfpec.nsf/en/Home

Rural Economic Development (RED) Program
The RED program supports projects that will help rural communities (any community with fewer than 100,000 people) thrive and grow. Companies investing in rural communities may receive up to a 50% grant to reimburse costs that are actual cash outlays to third parties, which they wouldn’t otherwise incur, such as: marketing and promotional costs, professional fees (legal, architectural, accounting), travel costs, studies, consultant or sub-contractor fees, equipment (R&D), internship funding for youth and displaced workers, skills upgrading, minor capital improvements (including engineering, architectural and renovations) and skills development. In order to qualify, the project must involve partnerships or strategic alliances between any combination of individuals, businesses, community organizations and municipalities.
http://www.omafra.gov.on.ca/english/food/industry/red-program.htm



















Source: Windsor Essex Development Commission (WEDC)
Through: Rakesh Naidu, Director, Business Attraction, WEDC