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.
Canada Revenue Agency
This a a reproduction copy of an official work that is published by the Government of Canada and that the reproduction has not been produced in affiliation with, or with the endorsement of the Government of Canada.
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