Canada offers a wide range of investment incentives, according to the Report on the State of Investments in Mexico 2021, released by the State Department.
In general, these investment incentives are designed to promote broader policy goals, such as boosting research and development and promoting regional economies.
The funds are available to qualified domestic and foreign investors.
First, Export Development Canada offers financial support for domestic investments under certain conditions.
The government maintains a Strategic Innovation Fund that provides financing to companies promoting «the Canadian innovation ecosystem.»
Canada also offers investment incentives through the Innovation Superclusters initiative, which is investing more than $ 700 million over five years (2017-2022) to accelerate investment and economic growth in Canada.
Investment incentives
The five superclusters focus on digital technology, protein industries, advanced manufacturing, artificial intelligence, and the ocean.
Foreign companies can apply for supercluster financing.
A 2020 Canada Parliamentary Budget Office report concluded that the Supercluster Initiative spending fell behind budget targets and the Initiative was unlikely to meet its 10-year goal of increasing GDP by $ 37 billion.
Local supports
Several provinces also offer incentive programs available to foreign companies.
These incentives are normally limited to companies established in the province or agreeing to establish a facility in the province.
For example, Quebec is implementing the “Plan Nord” (Northern Plan), a 25-year program to incentivize the development of natural resources in its northern and Arctic regions.
The program provides financing to facilitate infrastructure, mining, tourism, and other investments.
Additionally, the Ontario Jobs and Prosperity Fund will provide US $ 2 billion from 2013 to 2023 to improve productivity, drive innovation and grow Ontario’s exports.
To qualify, companies must have substantive operations (typically three years) and at least $ 5.6 million in eligible project costs.
Alberta offers businesses a provincial tax credit worth up to US $ 220,000 annually for scientific research and experimental development, as well as Alberta Innovation Vouchers worth US $ 75,000 to help knowledge- and technology-driven small businesses in initial stage to get your ideas and products to market faster.
Incentives for investment in cultural industries at both the federal and provincial levels are generally available only to companies controlled by Canada.
Incentives can take the form of grants, loans, loan guarantees, venture capital, or tax credits.
Instead, provincial incentive programs for film production in Canada are available to foreign filmmakers.
