Many Vancouver businesses are unaware of the variety of lesser-known tax credits available to them beyond the basic deductions. These alternative incentives can provide significant savings and improve overall financial health.

1. Scientific Research & Experimental Development (SR&ED)

The SR&ED tax credit is one of the most underutilized resources for small businesses. If your company invests in innovation or new product development, you may qualify for this credit.

• Available to both incorporated and unincorporated businesses.
• Includes wages, materials, and subcontractor costs.
• Can reduce taxes owed or result in a refund.

Learn more about Tax Planning Services to make the most of SR&ED credits.

2. Clean Energy Equipment Incentives

Businesses that invest in green technology or renewable energy systems may qualify for federal or provincial tax relief. This includes credits or deductions for:

• Solar panel installations
• Energy-efficient machinery
• Retrofitting older buildings

Read our article on Green Accounting for more details on how to claim these credits.

3. Interactive Digital Media and Multimedia Tax Credits

BC businesses in digital publishing, video games, or multimedia productions may qualify for the Interactive Digital Media Tax Credit (IDMTC). It allows claims on eligible salary and contractor expenses.

• Businesses must be registered in BC.
• Credits often range between 17.5% to 35%.
• Eligible for both start-ups and established companies.

4. Wage Subsidy and Hiring Credits

Employers who hire youth, newcomers, or employees from underrepresented groups may be eligible for wage subsidies through various programs. These credits help reduce payroll costs and support diversity in the workforce.

Explore our Payroll Services to ensure compliance while taking advantage of these benefits.

5. Charitable Donation Tax Credits

Non-profit organizations and corporations that donate to registered charities can claim federal and provincial donation tax credits.

• Claim up to 75% of net income in donations.
• Unused credits can be carried forward for 5 years.
• Also applicable for in-kind donations.