The Value of Investment Tax Credits for Your Business

Value of investment tax credit for business

It is often a common thought for Canadian business owners that only the very large Corporations fare well with tax credits and incentives.  Perhaps this was the case in the past but the Canadian Government has come to realize that the small business owners can play a critical role in the growth of the economy.   To encourage this they have developed new tax incentives to entice more people to open a business.

It is not likely that all of the investment tax credits would be applicable to any one business, but there are many small companies that can utilize at least one of them.

An old adage in the business world has been “you have to spend money to make money.”, and many business owners really do adopt this attitude.

One of the big problems that employers have to face is day care issues that their employees are challenged with.   Often time away from work is as a result of employees not having reliable day care to depend on.   Some companies have rectified this problem by implementing on site child care facilities at the work premises.   The Canadian government sees this as a viable solution in many different respects.   It cuts down the time lost from work by employees with day care problems.  It helps the government with the shortage of daycare space that Canadian workers are faced with.  It encourages those who are able to work but have the concern about day care to do so.

One of the problems that still remains however is that there are still not a lot of Companies that are offering this extended services to their employees.   To help encourage businesses to do so the CRA implements a non-refundable investment tax credit for every new child care space they create.   This is applicable to a licenced child care facility that the Company operates for the children of their employees.

Another way the Canadian Government sees as employers who are investing in their businesses is when Companies are hiring new employees who as of yet do not have all of the required skills to carry out their work related duties.   To encourage this the CRA has put a investment tax credit in place for the hiring of apprentices that fit a specific criteria.   While the credit is maxed at $2,000., it is just on many potential tax breaks that a Canadian business may be eligible for.

Not many business owners have the time to really research what potential tax breaks may be available to them. By making use of the skills and experience of a quality small business accountant this individual can be instrumental in surfacing significant tax savings.


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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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