On February 25, 2021, Alberta Finance Minister, Travis Toews,
announced the 2021 Alberta Budget. Many of the Budget measures are
meant to drive the province's investment in health care and
long-term economic recovery. Below is a summary of some of the tax
and other measures that were included in the Budget.
Innovation Employment Grant
Starting January 1, 2021, small and medium-sized businesses that
invest in research and development (R&D) can receive a payment
of up to 20 per cent of qualifying R&D expenditures.
The Innovation Employment Grant (IEG), provides an 8 per cent
payment on a corporation's base level R&D spending in a
year. The base level spending is calculated as the average R&D
spending of the corporation in Alberta over the previous two years.
Corporations that spend over their base level will be eligible for
a payment of 20 per cent on the incremental amount. Startup
businesses moving to Alberta could receive the 20 per cent payment
on their entire
