Alberta Innovation Employment Grant (IEG)
Refundable provincial tax credit of up to 20% on qualifying R&D expenditures in Alberta, stacking with federal SR&ED for combined 55% cost recovery for CCPCs.
About this program
The Alberta Innovation Employment Grant (IEG) is a refundable provincial tax credit equal to 8% on R&D expenditures up to a base amount and 20% on incremental R&D expenditures, on up to $4 million in qualifying expenditures per year. IEG replaced the cancelled Alberta SR&ED credit in 2021 and was made permanent in Alberta's 2025 budget. The IEG can be combined with the federal SR&ED tax credit (35% refundable for CCPCs on the first $3 million), yielding up to 55% combined cost recovery on qualifying R&D activities for Canadian-Controlled Private Corporations. The credit works in tandem with the Job Creation Tax Cut.
Eligibility
Corporations with permanent establishment in Alberta performing eligible R&D in Alberta; partnerships, trusts, and individuals are not eligible to claim IEG.
Requirements
- Alberta permanent establishment
- Eligible R&D activities in Alberta
- Federal SR&ED claim filing (Form T661)