Tax incentives, deductions — what really are they? At Pocketed, we want you to be able to take advantage of the tax credits in our database even if you don’t fully understand what they are… yet.
After reading this blog post, you’ll know exactly what tax credits are, how you can utilize them for the good of your business, and we’ll even give you some tax credit examples from our Canadian database.
You might hear the word ‘tax’ and feel your head start to spin, but we promise it’s not as daunting as it sounds.
You know during tax season when you get that dreaded number? The one that you have to pay the government? Well, tax credits can reduce that number! A tax credit is an incentive that a taxpayer can subtract from the amount they owe the government.
And let’s say your tax credit brings you over a zero balance, you might actually get a refund! How cool is that?
In our database, we have grants, tax credits, and competitions. So if you want to find all of the tax credits in one place, use our filtering option and click ‘Tax Credit’ underneath Funding Type.
Want a head start? Check out these options!
1. Ontario Research and Development Tax Credit
Province: Ontario
Companies can claim a tax credit on eligible scientific research performed in Ontario to reduce their Ontario corporate income tax payable.
The tax credit rate is 3.5% and is non-refundable.
2. Nova Scotia Digital Media Tax Credit
Province: Nova Scotia
This tax credit is for costs related to the development of digital media products in Nova Scotia.
The tax credit amount is equal to the lesser of 50% of eligible NS labour expenditures or 25% of total expenditures made in NS. An area bonus of 10% on labour expenditures or 5% on total expenditures is available for products developed outside the Halifax Regional Municipality.
3. Film or Video Production Services Tax Credit
Province: All of Canada
This tax credit is for eligible production companies as an incentive for choosing Canada as a location for film and video productions that employ Canadians.
The tax credit rate is 16% of the qualified Canadian labour expenditures incurred in respect of an accredited production.
4. Apprenticeship Job Creation Tax Credit
Province: All of Canada
This non-refundable investment tax credit is for businesses that hire an eligible apprentice.
The tax credit rate is 10% of eligible wages payable to apprentices in respect of employment.
Province: Prince Edward Island
This tax credit is supporting business growth by providing a refundable rebate on incremental job creation.
The rebate is up to 25% of eligible wages.
So, now you know what a tax credit is, and we even gave you some tax credit options to explore! But that’s only 5 of the tax credits available on our platform. Our Canadian database has over 60 tax credits just waiting to be viewed!
Don’t keep them waiting, create your Pocketed account today!
