Innovation Funding for Growth-Oriented Companies in Edmonton
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Transcript of Innovation Funding for Growth-Oriented Companies in Edmonton
INNOVATION FUNDING FOR GROWTH-ORIENTED COMPANIESFebruary 3, 2015
SR&Education: Everything You Need To Know to Claim SR&ED Tax CreditsFebruary 3, 2015Presented by Jeff Christie
| 3
WHAT’S SR&ED?
Scientific
Research
&
Experimental
Development
| 4
SR&ED FUNDING
In 2013, the CRA
provided $3.4B of
investment tax
credits (ITCs) to
22,000 companies
| 5
SR&ED ELIGIBILITY
| 5
SR&ED ELIGIBILITY
1. Was there a scientific or a technological
uncertainty that could not be removed by
standard practice/engineering?
1. Did the effort involve formulating a
hypothesis specifically aimed at reducing
or eliminating the uncertainty?
| 5
SR&ED ELIGIBILITY
3. Was the adopted procedure consistent with the total discipline of the scientific method, including formulating, testing, and modifying the hypothesis?
3. Did the process result in a scientific or technological advancement?
3. Was a record of the hypothesis tested and results kept as the work progressed?
| 6
EXAMPLES
| 7
WHO CAN CLAIM?
CCPC = Canadian Controlled Private
Corporations
Non-CCPC = Foreign or Publically
Owned Corporations
Partnerships
| 8
WHAT CAN YOU CLAIM
Non-arms length subcontractors
*Salaries and sub-contractors MUST be Canadian tax payers
| 9
CCPC AND SME
SME = Small to medium sized enterprise generating less
than $500K in taxable net income in the prior fiscal year
ITCs are refundable ($$$)
* Salaries and sub-contractors MUST be Canadian tax payers
| 10
ITCs are non-refundable
ITCs can be carried back 3 years or forward
indefinitely
NON-CCPC or LARGE CCPC
* Salaries and sub-contractors MUST be Canadian tax payers
| 11
OVERHEAD
| 16
DOCUMENTATION - TECH
Documented at the
time the work was
completed
Technical obstacles
or challenges
Dated
| 17
DOCUMENTATION - TIME
| 17
DOCUMENTATION - $$$
| 18
HOW TO FILE
Claim is submitted with your corporate tax
return
– One set of tax schedules for Federal
– Another set of tax schedules for Provincial
| 14
WHEN TO CLAIM?
18 Months Past Fiscal Year End
Current Claim = Within 6 mo
Amended Claim = Within 7 to 18 mo
| 18
CRA REVIEWS
CRA Review ≠ Tax Audit
Multiple types of CRA Reviews:
First Time Claimant Advisory Service (FTCAS)
Desktop
Financial
Technical & Financial
| 19
THE DO’S AND DON’TS
Do’s for Companies:
Pay yourself and staff
Start time tracking and proper
documentation now
Incorporate your company and
ensure clear IP ownership
| 20
THE DO’S AND DON’TS
Don’ts for Companies:
Underestimate the importance
of documentation
Focus on the business
opportunity
Leave your SR&ED claim until
the last minute
| 21
HOW WE WORK
Contingent
Scope your claim upfront and invoice when your claim is
successful
Efficient
Only require interviews & documentation
Proactive
Ongoing engagement and future recommendations
| 22
WHY WORK WITH US
Highly reputable
Technology-
focused
Efficient
Well-connected
| 23
JEFF CHRISTIE
PARTNER
403 589 2809 | [email protected]
BoastCapital.com | @BoastCapital | @ChristieLuge
For more info on R&D tax credits and other innovation funding programs,
subscribe to our newsletter.
www.mitacs.ca 25www.mitacs.ca
Delivering innovation
through research and
development
Eric Loo, PhD
Business Development Specialist
February 3, 2015
Boast Capital
Innovation Funding Lunch and Learn
www.mitacs.ca 26
Agenda
Why Mitacs?
Talent supply chain
Research outcomes
Mitacs programs
Contact information
www.mitacs.ca 27
Why Mitacs?
National research network15 years in operation37 research partners61 university partnersAlmost 10,000 research projects to solve business problems and drive innovation
www.mitacs.ca 28
Annual snapshot
Why Mitacs?
www.mitacs.ca 29
The Mitacs network
Why Mitacs?
Small & medium business
Large business
Start ups
Multi-nationals
Not-for-profits*
Computer science
Engineering
Anthropology
Economics
Chemistry
Geography
Health sciences
Genetics
Social work
Forestry
History
Languages & linguistics
Mathematics
Business
Education
Interactive arts
Psychology
And more…
www.mitacs.ca 30
Research talent supply chain
Why Mitacs?
Attract Train Retain Deploy
Best and brightest
research talent
With industry-ready skills and
experience
Talent locally to enhance
Canadian industry
Researchers to drive innovation
outcomes
www.mitacs.ca 31
National news coverage
Why Mitacs?
www.mitacs.ca 32
Program growth
Why Mitacs?
0
500
1000
1500
2000
2500
18 30 85 170 240
675
1060
1544 1576
2109
Mitacs
research
projects
www.mitacs.ca 33
Business Advantages
Why Mitacs?
Access expertise not currently in-house
Leverage R&D budget and claim SR&ED tax credits
Gain a competitive advantage
Tap into a national research network
Develop IP
Researchers paid by Mitacs: not a company employee
Pipeline for recruitment of talent
Mitacs assistance throughout application process
Industry
Industry
International
Academic
www.mitacs.ca 34
Research Outcomes
Pulp mill saves $40,000/year
Robotics company enhances drone aircraft camera prototype
Biotech firm commercializes one-step food testing kits
New generation greenhouse lighting results in higher crop yields
Enhanced GPS navigation technology commercialized
Improved chat room filter to improve internet security
Why Mitacs?
www.mitacs.ca 35
Building research collaborations
Large-scale, multidisciplinary projects
From $15,000 to $2M+
Development of IP
Top research talent
Matching funding
Scalable projects
Quick application – 6 week approval
www.mitacs.ca 36
Standard buildMitacs Accelerate
$10,000minimum intern
stipend
$5,000other project-related
expenses
$7,500Mitacs
$7,500Industry
$15,000Over 4-6 months
• Grad student (MSc or PhD) and Postdocs
• Clearly defined project objectives
• 50/50 time commitment at both the industry and academic sites
• Ensure active collaboration
• Multiple Internships – 2 max per Masters Student
– 6 max per PhD Student
– 6 max per Post-Doc
www.mitacs.ca 37
Scalability: build large-scale projects,
“clusters”
First 1 to 5 internship units: industry funding matched 1:1
Mitacs Accelerate
6 internships $80,000 (cluster) $44,000 from Mitacs, $36,000 from partner. Minimum 3 interns.
Access researchers from multiple disciplines for the same research project
4 months 4 months 4months 4 months 4 months 4 months
www.mitacs.ca 38
Cluster buildMitacs Accelerate
• Extra leverage for medium to large projects
• Higher ratio of funds matching
• Minimum 3 students
• Can be split among different research groups
• Scalable: each additional $18K from industry generates $22K from Mitacs
$80,000$36, 000 Industry$44,000 Mitacs
$10,000Stipend
$20,000other project-related
expenses
$10,000Stipend
$10,000Stipend
$10,000Stipend
$10,000Stipend
$10,000Stipend
www.mitacs.ca 39
Three-year PhD Fellowships
Long-term research collaboration
$90,000 in total funding
$25,000 stipend + $5,000 research costs annually
Peer-reviewed, open to all disciplines and international students
Professor may recruit PhD after project approval
Next call opensEarly 2015
Annual: $12,000 from partner, $18,000 from Mitacs = $30,000 total grant.
www.mitacs.ca 40
Partners
Business with facilities in Canada
Domestic or foreign-owned
May include– Utility providers
– University spin-offs
– First Nations development corporations
– Industry associations
NGOs, not-for-profit, foundations, industry based research collaborations
Mitacs Accelerate
www.mitacs.ca 41
Two-year projects
Postdoctoral expertise
Leveraged funding
Relationships with experts
Evaluation of potential employees
Access to specialized software and equipment
Develop in-house R&D capacity
Next callEnd of March
www.mitacs.ca 42
$50,000
$7,500
$57,500
Mitacs Elevate Annual Funding cycle
Mitacs Elevate
www.mitacs.ca 43
Our Funding Partners
www.mitacs.ca 44
Next Steps
Contact me to discuss research goals:
Find a local representative:
mitacs.ca/accelerate/contact-us
Eric LooBusiness Development Specialist
Mobile: 587-335-3778Email: [email protected]
Feb 3, 2015
Page X
• Customized guidance from expert advisors
• Informationon funding and support
programs
• Quick assistance
and referrals
Concierge Service – Your Guide to Innovation
Page 4
Innovative SMEs
Concierge Service
Federal Innovation Programs/ Services
Provincial Innovation Programs/ Services
Regional Innovation Programs/ Services
Local Innovation Support
Canada Business Network
Concierge Service Partnership Model
Website
Concierge
Advisors
Client
Contact
Centre
Page 7
Timeline: Evolution of the Concierge Service
1. Government Programs
2. Expert Information
3. Equipment and Facilities
4. Global Opportunities
• Expanded services progressively phased-in
•Call our bilingual client contact center
1-855-53-GUIDE (1-855-534-8433)
Hours of operations: 7:30 AM to 7:30 PM EST
Monday to Friday
•Visit our website
Our online database provides initial information on some
of the programs and services that are available:
www.concierge.portal.gc.ca
Page 9
How to reach the Concierge Service
NRC-IRAP
• Advisory Services & Funding Through an Industry Technology Advisor (ITA)
• IRAP = Industrial Research Assistance Program
• BIAP = Business Innovation Access Program
• YEP = Youth Employment Program
• CMC Canada joint program
• SME Canada joint program
• CTO = Contribution to Organizations
NRC-IRAP
• IRAP typically funds 80% of R&D personnel costs for a project to a max of 50% of total project costs
• Small projects typically an Abbreviated Review Project (up to $50k) requiring about a month
• Larger projects (> $100k contribution) have a more involved due diligence process requiring 1-3 months to complete
NRC-BIAP
• Funding up to $50k over a 3-6 month period for work done at public R&D institution (e.g. NAIT, UofAB, Red Deer College, NINT, etc.)
• Covers 75% of total project costs
• Work is often access to specialized knowledge and equipment not available to the SME
NRC-YEP
• Youth Employment Program provides a non-repayable grant for a new technical hire (recent grad)
• Grant (approx. $18k) paid monthly over 6 months
• Application through ITA with turnaround of 10 working days
IRAP-CMC Canada
• Provides up to $5k for a CMC certified consultant to undertake a strategic project with SME
• Example projects: ERP system, manufacturing process change implementation, market expansion, etc.
• Nominal registration fee of $150 for the SME
IRAP-SME Canada
• Subsidized access to a bench-marking service
• Value of approx. $1250 with nominal registration fee of $150 for SME
• Allows SME to compare its productivity (various measures) with comparators throughout N. America over time
IRAP CTOs
• Contribution to Non-Profit NGOs where alignment of objectives is achieved
• Typical grants are to industry associations, incubators/accelerators, economic development agencies
• Local Examples: TEC Edmonton, Leduc-Nisku, Regional Business Accelerator- Lloydminster, Wood Buffalo RBA, BioAlberta, etc.