Alberta SR&ED Tax Credits Up to 43%
Combine the federal SR&ED credit with the Alberta Innovation Employment Grant (IEG) to maximize your R&D tax recovery in Alberta.
Alberta Innovation Employment Grant (IEG)
Alberta replaced its former SR&ED tax credit with the Innovation Employment Grant (IEG) in 2021. The IEG provides a refundable grant of up to 8% on eligible R&D expenditures performed in Alberta. Combined with the federal 35% enhanced rate, Alberta CCPCs can recover up to 43% of R&D costs. Calgary and Edmonton are home to growing tech ecosystems, particularly in energy tech, agri-tech, and AI.
Provincial Credit Rate
8%
Refundable
Yes (grant, not tax credit)
Expenditure Limit
$4M annually
Combined Max Rate (CCPC)
43%
Combined Max Rate (Non-CCPC)
23%
Format
Grant (paid directly)
Federal + AB Credit Stacking
Here's how the credits combine for a CCPC with $500,000 in eligible R&D salaries.
Enhanced rate for CCPCs
Refundable
Effective rate: 43%
This example uses salaries only. Including contractor costs (at 80%) and materials would increase the total. Overhead (55% proxy) is added automatically. Use our calculator for a detailed estimate.
Alberta Eligibility Requirements
- Must have a permanent establishment in Alberta
- The IEG is a grant, not a tax credit — paid directly to the company
- Rate is 8% for companies with less than $10M in eligible expenditures (phases down above $10M)
- Annual expenditure limit of $4M for the full 8% rate
- Eligible expenditures align with federal SR&ED definitions
- Applications are submitted through Alberta Innovates
Important: Provincial credits are claimed on your Alberta corporate tax return, separate from your federal T661 filing with the CRA. Ensure you file both to capture the full combined benefit.
Other Alberta R&D Incentives
Beyond SR&ED, Alberta offers additional programs that can be stacked with your tax credits.
Alberta Innovates
Alberta's primary research and innovation agency. Provides grants, vouchers, and funding programs for R&D across clean tech, digital health, AI, and smart agriculture.
Alberta Enterprise Corporation
Invests in venture capital funds that support Alberta-based technology companies at seed and early stages.
Emissions Reduction Alberta (ERA)
Funds clean technology innovation projects that reduce greenhouse gas emissions. Relevant for clean tech companies doing SR&ED-eligible work.
Maximize Your Alberta SR&ED Credits
Glauq automates your federal and Alberta provincial SR&ED claims — ensuring you capture every eligible dollar across both programs.
Alberta SR&ED FAQ
What is the Alberta Innovation Employment Grant?
The IEG replaced Alberta's former SR&ED tax credit in 2021. It provides a refundable grant of up to 8% on eligible R&D expenditures incurred in Alberta. Unlike tax credits, it is paid directly to the company as a grant through Alberta Innovates.
How is the IEG different from a tax credit?
The IEG is a grant, not a tax credit. You apply through Alberta Innovates (not on your tax return) and receive the payment directly. This means even companies with no taxable income receive the full benefit. The application process is separate from your federal SR&ED claim.
What is the expenditure limit for the IEG?
The full 8% rate applies to the first $4M of eligible Alberta R&D expenditures annually. For expenditures between $4M and $20M, the rate gradually decreases. Above $20M, the rate is 0%.
Can I claim both federal SR&ED and the Alberta IEG?
Yes. The IEG stacks on top of the federal SR&ED credit. A CCPC with $500K in eligible Alberta salaries would receive $175K federal (35%) plus $40K IEG (8%) for a combined $215,000 — an effective rate of 43%.