Tax incentives, deductions and rebates
50 answers. Written by the celerfunding.com editorial team from official sources. Each answer shows where it applies and when its sources were read.
Is the SR&ED tax incentive a grant, and how is it claimed?
No. SR&ED is a tax incentive, not an advance grant. It works as an income tax deduction and an investment tax credit, which is sometimes refundable.
You claim it with your income tax return. Optional pre-claim approval does not replace the claim. Eligibility depends on the technical work and the expenditures. A general label of innovation is not enough, and the work must be done in Canada.
Government assistance, including IRAP, affects the credit and expenditure calculations and must be reported. Provincial and territorial R&D credits have their own rules and can also affect what you claim. Refundability for charities or tax-exempt entities was not resolved in this research.
This is general information, not tax advice. Because treatment depends on entity type and tax year, speak with a qualified tax practitioner and read the CRA guidance.
Next: CRA SR&ED program
Sources (read 2026-10-31): CRA SR&ED; Claim with tax return
Can tax-exempt organizations be paid for US clean-energy tax credits?
Sometimes. Qualifying tax-exempt entities can use elective pay for certain clean-energy credits, but it is a tax mechanism, not an advance grant.
Elective pay treats the credit as a tax payment, with a refund after any tax liability is offset. The entity must also meet the credit's project, timing and other rules. IRS guidance covers public charities and private foundations described in sections 501 through 530 that meet the exemption rules. It requires IRS pre-filing registration and a timely original tax return with the credit forms. Registration does not prove eligibility.
Rules have changed. IRS guidance says section 30C is unavailable for property placed in service after June 30, 2026. Section 45W is unavailable for vehicles acquired after September 30, 2025. Section 179D is unavailable where construction begins after June 30, 2026.
This is general information, not tax advice. Get project-specific tax review.
Next: IRS elective pay FAQ
Sources (read 2026-10-31): IRS elective pay; IRS termination guidance
What are the SR&ED credit rates?
CRA says the basic SR&ED investment tax credit rate is 15%, and some corporations may qualify for an enhanced rate of 35%. Some businesses may also earn a refundable credit.
The CRA page read here does not say which corporations get the enhanced rate or any expenditure limit, so those details need confirming in CRA guidance or with a tax practitioner. Whether any credit is refundable depends on your entity type and tax year.
The credit is not an advance payment. It is claimed on a tax return and reduces tax or may be refunded after assessment.
Government assistance, such as NRC IRAP, reduces the ITC you can earn.
This is general information, not tax advice. Next step: read the CRA page and speak with a qualified SR&ED tax professional.
Next: CRA SR&ED program
Related: Is the SR&ED tax incentive a grant, and how is it claimed?
Sources (read 2026-11-01): SR&ED tax incentive program (CRA); What are SR&ED tax incentives (CRA)
Who can claim SR&ED?
Corporations, individuals, trusts and partnerships that carry out SR&ED work in Canada can claim. Partnerships allocate the credit to their eligible partners.
The key test is the work, not the legal form. Eligible work has to meet CRA's SR&ED requirements, which the CRA page read here does not list in full. Work done outside Canada is generally not covered by this incentive.
The incentives are claimed with your income tax return as a deduction against income or an investment tax credit.
This is general information, not tax advice. Next step: read CRA's "What work is eligible" section and have a tax professional confirm that your projects and expenses qualify.
Next: CRA SR&ED program
Related: Is the SR&ED tax incentive a grant, and how is it claimed?
Sources (read 2026-11-01): What are SR&ED tax incentives (CRA)
What is SR&ED pre-claim project approval?
It is an optional CRA service that assesses proposed SR&ED work for eligibility before you start the work or incur costs. It does not replace the claim.
CRA says you can apply for up to three projects and each approval lasts up to three years. The CRA does not assess expenditures in this process. You must still file an SR&ED claim. If the claim contains only pre-claim projects, the CRA may carry out an accelerated 90-day expenditure-only review.
Approval of a project does not mean any expenditure is accepted, and it does not guarantee a refund.
This is general information, not tax advice. Next step: read CRA's pre-claim page and talk to a tax professional about whether it fits your project timing.
Next: CRA SR&ED program
Related: Is the SR&ED tax incentive a grant, and how is it claimed?
Sources (read 2026-11-01): SR&ED tax incentive program (CRA)
Does NRC IRAP funding reduce my SR&ED claim?
Yes. CRA says other government R&D funding, such as NRC IRAP, reduces the investment tax credit you can earn. You must report such assistance in your claim.
CRA also says provincial and territorial R&D credits reduce the expenditures you can claim. So adding a grant and a tax credit together can overstate the benefit.
The exact calculation depends on the assistance, the entity and the tax year, and the page read here does not give formulas.
This is general information, not tax advice. Next step: keep a project-level record of all assistance, report it in the claim, and ask a qualified tax practitioner to compute the effect before you budget.
Next: CRA SR&ED program
Related: Is the SR&ED tax incentive a grant, and how is it claimed?; Who can get NRC IRAP support?
Sources (read 2026-11-01): SR&ED tax incentive program (CRA)
Do provincial R&D tax credits affect my SR&ED claim?
Yes, they can. CRA says provincial and territorial R&D credits reduce the expenditures you can claim for SR&ED.
Provinces and territories run their own R&D credits with their own eligibility, rates and filing steps, and the CRA page read here points to a separate list of them without giving details. Some may be refundable and some not.
Because the interaction runs both ways, claim the credits in the right order and report them accurately.
This is general information, not tax advice. Next step: check CRA's provincial and territorial credits page and your province's tax authority, and ask a tax practitioner to model the combined result.
Next: CRA SR&ED program
Related: Does NRC IRAP funding reduce my SR&ED claim?
Sources (read 2026-11-01): SR&ED tax incentive program (CRA)
Do I still have to file an SR&ED claim if I get project approval first?
Yes. Pre-claim approval does not replace the SR&ED claim. CRA says you must still submit a claim whether or not you apply.
The claim goes in with your income tax return. If it includes only pre-claim projects, the CRA may do an accelerated 90-day expenditure-only review. Otherwise the normal review may apply.
Approval of the work does not confirm the costs, so keep records of the work and the expenses.
This is general information, not tax advice. Next step: read CRA's pages on preparing and submitting a claim, and set a reminder for your filing deadline with your accountant. The deadline was not confirmed in this run.
Next: CRA SR&ED program
Related: What is SR&ED pre-claim project approval?
Sources (read 2026-11-01): SR&ED tax incentive program (CRA)
What is the Work Opportunity Tax Credit?
The WOTC is a federal general business credit for US employers that hire people from certain targeted groups who face barriers to employment. The IRS and the Department of Labor administer it.
For a first-year employee who works at least 400 hours, the credit generally equals 40% of up to $6,000 of wages, a maximum of $2,400. Employees with 120 to 399 hours qualify at 25%.
It is a tax credit, not a wage subsidy or grant, and it is claimed after state certification.
Authorization has an end date, so check current status before relying on it. This is general information, not tax advice. Next step: read the IRS WOTC page and ask a tax professional or your state workforce agency.
Next: IRS WOTC
Related: What is the Form 8850 28-day deadline for WOTC?
Sources (read 2026-11-01): Work Opportunity Tax Credit (IRS)
What is the Form 8850 28-day deadline for WOTC?
The employer must submit Form 8850 to the designated state workforce agency within 28 calendar days of the employee's start date. This is a hard step that is easy to miss.
The IRS says the employer and applicant complete the form on or before the day the job offer is made. It records four dates: when the applicant gave information, was offered the job, was hired, and started. It must be signed under penalties of perjury.
The state agency must certify that the worker belongs to a targeted group. Taxable employers then claim the credit on Form 5884.
Missing the 28 days can mean no credit.
This is general information, not tax advice. Next step: build the form into your hiring checklist and confirm details with the IRS page or a tax professional.
Next: IRS WOTC
Related: What is the Work Opportunity Tax Credit?
Sources (read 2026-11-01): Work Opportunity Tax Credit (IRS)
Is the WOTC still available?
Check before relying on it. As of the IRS page read on 2026-11-01, the credit applied to individuals who begin work on or before December 31, 2025, and the page described no extension beyond that.
The page was last updated July 20, 2026. A later law change could have extended it, and this run did not find one. Do not treat it as available for new 2026 hires unless the IRS or your tax adviser confirms.
Past hires who started on or before the end date, and whose forms were filed on time, can still matter for earlier years.
This is general information, not tax advice. Next step: check the IRS WOTC page and ask a tax professional about current status.
Next: IRS WOTC
Related: Do I still have to file an SR&ED claim if I get project approval first?
Sources (read 2026-11-01): Work Opportunity Tax Credit (IRS)
Can a nonprofit claim the WOTC?
Only in a limited way. The IRS page says tax-exempt employers file Form 5884-C, and that the qualified veteran credit applies to those who begin work before 2026.
Taxable employers claim the credit on Form 5884. For nonprofits, the page read here points to the veteran-related credit rather than the full set of targeted groups.
Given the page's end dates, check whether any credit remains available for new hires. The credit is a tax mechanism, not a grant or a payroll subsidy.
This is general information, not tax advice. Next step: read the IRS WOTC page and ask a tax professional who knows exempt-organization rules.
Next: IRS WOTC
Related: What is the Form 8850 28-day deadline for WOTC?
Sources (read 2026-11-01): Work Opportunity Tax Credit (IRS)
What is the US research credit and how is it claimed?
It is a federal tax credit for increasing research activities, calculated and claimed on IRS Form 6765. It is a tax benefit, not a grant.
The IRS Form 6765 page says the form lets filers compute the credit, choose a reduced credit under section 280C, and make and compute the payroll tax credit election. The payroll election is tied to qualified small businesses, though the page does not explain who qualifies.
What counts as qualified research and qualified costs is not covered by the page read here.
This is general information, not tax advice. Next step: read the instructions for Form 6765 and have a tax professional confirm whether your work and records support a claim.
Next: IRS Form 6765
Related: Is the SR&ED tax incentive a grant, and how is it claimed?
Sources (read 2026-11-01): About Form 6765, Credit for Increasing Research Activities
Who can deduct charitable donations in the US?
Individuals can deduct gifts of money or property to qualified organizations, but only if they itemize deductions. The gift must go to an organization that qualifies under section 170(c).
The IRS lists qualified groups such as charitable, religious, educational and scientific organizations, certain veterans and fire groups, and government units for public purposes. The gift must be made before the tax year ends. Donated property is generally deductible at fair market value, with adjustments for appreciated property.
The page read here covers individuals; business rules are different and were not covered.
This is general information, not tax advice. Next step: confirm the organization's status in the IRS Tax Exempt Organization Search and ask a tax professional.
Next: IRS charitable deductions
Related: Who can deduct charitable donations in the US?
Sources (read 2026-11-01): Charitable contribution deductions (IRS)
What are the US limits on charitable deductions?
Generally, deductions are capped at 50% of adjusted gross income. Gifts to private foundations and certain other organizations such as fraternal societies are capped at 30%. Some cases have 20% or 30% limits.
The IRS says its Tax Exempt Organization Search tool lists deductibility codes that show which limit applies to a given organization. Rules for businesses differ and were not covered by the page read here.
Excess amounts may be carried forward in some cases, which the page did not address.
This is general information, not tax advice. Next step: look up the recipient in the IRS search tool and ask a tax professional how limits apply to you.
Next: IRS charitable deductions
Related: What is the US research credit and how is it claimed?
Sources (read 2026-11-01): Charitable contribution deductions (IRS)
Are donations to foreign charities deductible in the US?
Usually not. The IRS says most foreign organizations do not qualify, with a limited exception for certain Canadian organizations under a tax treaty.
The deduction requires a qualified organization under section 170(c). The page read here does not explain the treaty exception in detail, so do not assume a Canadian charity qualifies. Giving through a US-qualified intermediary may be handled differently, but that was not covered.
This is general information, not tax advice. Next step: read the IRS page and ask a cross-border tax professional before relying on a deduction. Charities that want US donors may consider asking a qualified adviser about options.
Next: International funding resources
Related: What is the US research credit and how is it claimed?
Sources (read 2026-11-01): Charitable contribution deductions (IRS)
How can a donor check that a US charity is deductible?
Use the IRS Tax Exempt Organization Search. The IRS says donations are deductible only to organizations recognized under section 501(c)(3) that are eligible under section 170, with testing-for-public-safety organizations as the exception.
IRS charitable-deduction guidance also says the search tool shows deductibility codes indicating which percentage limit applies.
An organization claiming to be a charity is not proof. Revoked or never-recognized groups would not qualify.
This is general information, not tax advice. Next step: search the exact legal name or EIN before you give, keep your receipt, and ask a tax professional about limits.
Next: IRS charitable deductions
Related: What is the US research credit and how is it claimed?; Who can deduct charitable donations in the US?
Sources (read 2026-11-01): Exemption requirements, 501(c)(3) organizations (IRS); Charitable contribution deductions (IRS)
What does a US group have to be to receive tax-deductible gifts?
It must be organized and operated only for exempt purposes under section 501(c)(3), and be eligible under section 170 for donors to deduct gifts.
The IRS says it cannot serve private interests, and no net earnings can benefit a private shareholder or individual. It cannot be an action organization, meaning lobbying cannot be a substantial part of its activities and it cannot take part in campaigns for or against candidates. Excess benefit transactions with insiders can trigger excise taxes.
Meeting these rules is what recognition tests. A group that says it is a charity is not enough.
This is general information, not legal or tax advice. Next step: read the IRS requirements and consult a nonprofit lawyer before applying.
Next: IRS 501(c)(3) requirements
Related: Are donations to foreign charities deductible in the US?
Sources (read 2026-11-01): Exemption requirements, 501(c)(3) organizations (IRS)
What do Canadian charities need to know about issuing donation receipts?
Only qualified donees, such as registered charities on CRA's list, can issue official donation receipts. Topics include receipt contents, gifts in kind, and donor benefits.
CRA's issuing-receipts hub covers the information an official receipt must contain, how to determine fair market value of non-cash gifts, a deemed fair market value rule, split receipting where the donor gets a benefit, fundraising events, cause-related marketing, lottery prizes and loanbacks. It also covers correcting receipts and consequences of improper receipting.
The hub page read here lists topics only, so exact rules need the linked pages.
This is general information, not tax advice. Next step: read the linked CRA topic pages and ask a charity-law adviser before issuing receipts.
Next: CRA issuing receipts
Related: Is corporate sponsorship the same as a donation for a Canadian charity?
Sources (read 2026-11-01): Issuing receipts, registered charities (CRA)
Which provinces offer their own R&D tax credits?
Most Canadian provinces and one territory have their own R&D tax credit, but the rates and refund rules differ by jurisdiction. CRA lists the Northwest Territories, Nunavut and Prince Edward Island as having none.
As read, CRA describes examples such as a 15% fully refundable credit in New Brunswick, Newfoundland and Labrador, Nova Scotia and Yukon, a 10% British Columbia credit, and Ontario credits that include a refundable 8% innovation credit. Alberta uses a grant-style incentive rather than a tax credit. Quebec is administered by Revenu Québec.
Provincial credits generally follow the federal SR&ED rules for what work qualifies, and most reduce the federal expenditure pool because they count as assistance. Treatment varies by province.
This is information, not tax advice. Confirm current rates with CRA or the provincial revenue office and a qualified tax practitioner.
Next: CRA provincial R&D credits
Related: Do provincial R&D tax credits affect my SR&ED claim?; What are the SR&ED credit rates?
Sources (read 2026-11-01): Provincial and territorial R&D tax credits
How late can I file an SR&ED claim?
A corporation generally has 18 months after its tax year end to file an SR&ED claim. Individuals with a business have 17.5 months after the calendar year end, and trusts have 15 months after the tax year end.
CRA says a missed deadline is serious. Expenditures filed late are not treated as SR&ED expenditures, no investment tax credit is earned on them, and CRA cannot grant extra time. They are taxed under the general Income Tax Act rules instead.
Non-profit SR&ED corporations follow the six-month return due date and face a late-filing penalty.
Treat the deadline as firm and plan the claim early, since it needs technical and financial support. This is general information, not tax advice. Check your own tax year with a qualified tax practitioner and the CRA policy.
Next: CRA SR&ED filing requirements
Related: Is the SR&ED tax incentive a grant, and how is it claimed?; Do I still have to file an SR&ED claim if I get project approval first?
Sources (read 2026-11-01): SR&ED filing requirements policy
Are software development costs eligible for SR&ED?
Software work can qualify only if it meets CRA's two tests; being software is not enough. The work must seek technological advancement and be a systematic investigation through experiment or analysis, such as defining a problem, forming a hypothesis, testing and drawing conclusions. You need not succeed.
CRA lists computer programming as eligible support work, but only when it directly supports qualifying SR&ED and matches the scale that work needs. Routine development is not eligible. CRA's excluded list includes commercial production, routine data collection, quality control or routine testing, and training or hiring experts to apply existing knowledge.
The CRA page read does not discuss software in detail, so it does not settle any particular project. Keep dated records of the uncertainty and experiments.
This is general information, not tax advice. Ask a qualified practitioner and read CRA's eligibility guidance.
Next: CRA: what work is eligible
Related: Who can claim SR&ED?; What records support an SR&ED claim?
Sources (read 2026-11-01): What work is eligible (SR&ED)
What records support an SR&ED claim?
CRA expects dated records made during the work that show what was done, who did it, when, and how costs were worked out. Recreated notes after the fact carry less weight.
Examples CRA gives are project records, samples, photos, videos and software commit logs. For costs, keep organized ledgers, vouchers, contracts and receipts for at least six years.
Reviewers can ask someone to explain the documents and how they relate to the T661 claim, so choose a person who knows the work.
The aim is to link technical work to the dollars claimed. Mixed commercial and experimental work needs a clear way to separate the two.
This is general information, not tax advice. A qualified tax practitioner can tell you what to keep for your situation.
Next: CRA SR&ED review guide
Related: What happens in an SR&ED review?; Are software development costs eligible for SR&ED?
Sources (read 2026-11-01): The SR&ED review process: a guide for claimants
What happens in an SR&ED review?
A review starts with a call and a letter from CRA listing information requests, usually due in about 30 days, plus a meeting agenda. A research and technology advisor looks at the technical work and a financial reviewer looks at the expenditures. Some reviews cover only expenditures.
The meeting is usually virtual and may include interviews with the people who did the work, a tour, and review of records. If CRA proposes adjustments, you receive a proposal package that can include a proposed penalty. You can respond in writing, generally within 30 days.
If you still disagree, CRA describes an administrative review, which checks the process rather than redoing the review, and a formal objection within 90 days of the notice of assessment.
This is general information, not tax advice. Involve a qualified tax practitioner if you receive a review letter.
Next: CRA SR&ED review guide
Related: What records support an SR&ED claim?
Sources (read 2026-11-01): The SR&ED review process: a guide for claimants
What is the paid family and medical leave credit for US employers?
It is a federal business tax credit for eligible employers that pay employees during family and medical leave. Employers use Form 8994 to figure it, for tax years beginning after 2017.
The IRS business summary says Congress made the credit permanent. It also says employees need six months of service, and part-time employees working at least 20 hours a week are now eligible.
The IRS form page does not give the percentages or the written-policy rules. Those are in the Form 8994 instructions and the Section 45S guidance, so read them before you design a leave policy.
This is a tax credit, not a grant. Ask a tax professional how it applies to your payroll.
Next: United States funding resources
Sources (read 2026-11-01): Working Families Tax Cuts: businesses; About Form 8994
How does the Canadian Accelerated Investment Incentive change after 2023?
The enhanced first-year deduction is being reduced for property that becomes available for use after 2023, and it applies only to property available for use before 2028.
The CRA page says that for half-year-rule property available for use in 2024 to 2027, the allowance drops to 2 times the normal first-year deduction. For other property in that period it is generally about 1.25 times. For earlier property, the factors were 3 times and 1.5 times.
The incentive shifts deductions earlier. It does not raise the total deduction over the property's life.
Property must be acquired after November 20, 2018. Some classes are excluded. This is a deduction, not a grant. Check the CRA page and a tax adviser for your asset class.
Next: Canada funding resources
Related: How is the Accelerated Investment Incentive in Canada being reduced?
Sources (read 2026-11-01): CRA: Accelerated Investment Incentive and full expensing
How does US section 174 treat R&D costs?
For tax years beginning after December 31, 2024, domestic research or experimental costs can be deducted in the year paid or incurred under section 174A. Alternatively, a business can elect to capitalize them and amortize over at least 60 months.
Foreign research costs cannot be deducted currently. They must be capitalized and amortized over 15 years.
The IRS also describes transition relief. Businesses with average annual gross receipts of $31 million or less may apply the change retroactively to years beginning after December 31, 2021, with an election deadline of July 4, 2026, and other taxpayers can accelerate remaining deductions for earlier amortized domestic costs.
Costs to acquire or improve land or depreciable property do not qualify. This is general information, not tax advice. Confirm with a US tax professional and IRS guidance.
Next: IRS provisions summary
Related: What is the US research credit and how is it claimed?
Sources (read 2026-11-01): One Big Beautiful Bill provisions; Understanding the Working Families Tax Cuts: business tax provisions (video transcript)
How does the US research credit payroll election for small businesses work?
A qualified small business can elect to apply part of its research credit against employment taxes rather than income tax. The IRS says employers use Form 8974 to work out the amount of the payroll tax credit and report it on their employment tax return.
The election itself is made with Form 6765, which the IRS describes as the form to elect and figure the payroll tax credit. The IRS pages point to Notice 2017-23 for the election rules.
Neither page states the dollar limit, the receipts test or the years of eligibility. Those are in the form instructions, so I did not confirm them.
This is a tax credit, not a grant. Ask a tax professional before you rely on it.
Next: United States funding resources
Related: What is the US research credit and how is it claimed?
Sources (read 2026-11-01): About Form 8974; About Form 6765, Credit for Increasing Research Activities
What is section 179 expensing?
Section 179 lets a business deduct the cost of qualifying property in the year it is placed in service instead of depreciating it over time. It is a tax deduction, not a grant.
The IRS says the limit is $2,500,000 for property placed in service in tax years beginning after December 31, 2024, up from $1,000,000. The limit reduces dollar for dollar once qualifying property placed in service in a year exceeds $4,000,000, and it is indexed for inflation after 2025.
The IRS video transcript gives figures for 2026 but is garbled, so check the current inflation-adjusted amounts.
Eligibility depends on the property, your income and the tax year, and some vehicles are restricted. This is general information, not tax advice. Ask a US tax professional and read the IRS guidance.
Next: IRS business tax provisions
Related: What is bonus depreciation in 2026?
Sources (read 2026-11-01): Working Families Tax Cuts: businesses; Understanding the Working Families Tax Cuts: business tax provisions (video transcript)
What is bonus depreciation in 2026?
For qualified property acquired after January 19, 2025, the IRS says 100% bonus depreciation is permanent. That lets a business deduct the full adjusted basis in the first year, for property that qualifies.
For the first tax year ending after January 19, 2025, taxpayers could instead elect lower rates: 40%, or 60% for long production period property and certain aircraft.
Bonus depreciation is a timing benefit that lowers taxable income. It is not cash from the government. Whether it helps depends on whether you have taxable income, state conformity and the property type.
This is general information, not tax advice. Rules change, so confirm the current treatment for your acquisition date with a US tax professional.
Next: IRS business tax provisions
Related: What is section 179 expensing?
Sources (read 2026-11-01): Working Families Tax Cuts: businesses
How is the Accelerated Investment Incentive in Canada being reduced?
The Accelerated Investment Incentive gives an enhanced first-year capital cost allowance deduction and suspends the half-year rule. For eligible property it allows up to three times the normal first-year deduction, or 1.5 times for property not normally subject to the half-year rule.
It applies to property acquired after November 20, 2018 that becomes available for use before 2028. The enhanced amounts phase down for property available for use after 2023.
The CRA says it does not increase total deductions over the property's life. A bigger first-year claim means smaller later claims. Classes 54, 55 and 56 are excluded, and some other classes fall under separate measures.
This is general information, not tax advice.
Next: Canada funding resources
Related: How does the Canadian Accelerated Investment Incentive change after 2023?
Sources (read 2026-11-01): CRA: Accelerated Investment Incentive and full expensing
What is the Canadian Clean Technology investment tax credit?
The Clean Technology ITC is a refundable tax credit on capital spending for clean technology property in Canada. It is a tax credit, not a grant.
CRA says the credit is up to 30% of the capital cost of qualifying property acquired and available for use from March 28, 2023 through December 31, 2033, then up to 15% for property available for use in 2034. It ends after 2034.
The page read does not set out who can claim or which property qualifies, and those details matter. CRA also links the full rate to labour requirements, which the page read did not detail. Treat the headline rate as a ceiling, not a promise.
This is general information, not tax advice. Review the CRA eligibility sections and speak with a qualified tax practitioner before relying on it.
Next: CRA Clean Technology ITC
Related: What is the Clean Technology Manufacturing credit?
Sources (read 2026-11-01): What is the Clean Technology ITC
What is the Clean Technology Manufacturing credit?
The Clean Technology Manufacturing investment tax credit supports certain manufacturing and processing property used in clean technology and critical mineral supply chains. It is a tax credit claimed by taxable Canadian corporations, not a grant.
CRA lists a 30% rate for property acquired and available for use from January 1, 2024 to December 31, 2031, then 20% in 2032, 10% in 2033 and 5% in 2034.
Eligible activities include extracting and processing certain minerals such as lithium, cobalt, nickel, copper, rare earths and graphite, recycling, and manufacturing solar arrays or wind turbine towers. Partnerships can allocate the credit only to members that are taxable Canadian corporations. CRA says the labour requirements of other clean economy credits do not apply to this one.
This is general information, not tax advice. Check CRA's property rules and ask a qualified practitioner.
Next: CRA CTM ITC
Related: What is the Canadian Clean Technology investment tax credit?
Sources (read 2026-11-01): Clean Technology Manufacturing Investment Tax Credit
Which US energy tax credits end in mid-2026?
Three end on June 30, 2026, according to IRS guidance. The alternative fuel vehicle refueling property credit (30C) ends for property placed in service after that date. The new energy efficient home credit (45L) ends for homes acquired after it. The energy efficient commercial buildings deduction (179D) ends for property whose construction begins after it.
The commercial clean vehicle credit (45W) ended earlier, for vehicles acquired after September 30, 2025.
This is as of 1 November 2026, so the June 2026 dates have passed. Property already placed in service or under construction before the cutoffs may still count under the rules.
The IRS page does not cover every business credit. Ask a tax professional about your project.
Next: United States funding resources
Related: Can tax-exempt organizations be paid for US clean-energy tax credits?
Sources (read 2026-11-01): IRS termination guidance
Can households still claim US residential energy credits?
No, for new purchases. IRS guidance says the energy efficient home improvement credit (25C) ends for property placed in service after December 31, 2025. The residential clean energy credit (25D) ends for expenditures treated as made after that date.
For 25D, an expenditure counts when installation finishes, so paying by December 31 does not preserve the credit if installation finishes later.
This is as of 1 November 2026. A household that completed qualifying work in 2025 may still claim it on its 2025 return. Anything finished in 2026 does not qualify under these rules.
These are tax credits, not grants. Check the IRS FAQ and a tax professional for your situation.
Next: United States funding resources
Related: Which US energy tax credits end in mid-2026?
Sources (read 2026-11-01): IRS termination guidance
Are US clean vehicle tax credits still available?
Generally not for vehicles acquired after September 30, 2025. IRS guidance says the new clean vehicle credit (30D), the previously-owned clean vehicle credit (25E) and the commercial clean vehicle credit (45W) end for vehicles acquired after that date.
A vehicle counts as acquired when a written binding contract is signed and a payment is made, which can be a nominal down payment or a trade-in. Someone who met both by September 30, 2025 can still claim when they take possession later. The dealer should provide a time of sale report.
This is as of 1 November 2026. These are tax credits, not grants. Confirm with the IRS FAQ and a tax professional.
Next: United States funding resources
Related: Can households still claim US residential energy credits?
Sources (read 2026-11-01): IRS termination guidance
What is the Canadian donation tax credit for individuals?
Canada gives individuals a non-refundable tax credit for gifts to qualifying donees, not a refund of the gift. It reduces tax owing.
CRA's 2025 page lists federal rates of 14.5%, 29% and 33%. The page read did not explain which gifts get which rate, so check the CRA calculation guidance. Provinces add their own credits.
You can generally claim up to 75% of net income for the year, and up to 100% for certain capital property gifts and gifts in the year of death. Unclaimed amounts can be carried forward five years, or ten for ecological gifts.
The gift must be to a qualifying donee and receipted. This is general information, not tax advice.
Next step: confirm the donee on CRA's list and read the current rates for your province.
Next: CRA donation claim limits
Related: What do Canadian charities need to know about issuing donation receipts?; Can a Canadian charity ignore the de minimis rule when a donor gets a small gift?
Sources (read 2026-11-01): How much you can claim: donations and gifts
Can a Canadian charity ignore the de minimis rule when a donor gets a small gift?
Often a charity does not have to subtract a small advantage, but not always. Under the CRA de minimis rule, if the combined value of advantages is at or below the lesser of $75 or 10% of the gift, the charity need not subtract it from the receipt.
Example: on a $100 gift, advantages worth $8 need not be subtracted, but $11 or more must be.
The rule does not apply to cash or near-cash items such as gift certificates, vouchers or coupons. It also does not apply to the object of a fundraising event, such as a dinner meal or golf green fees. Those values must always be subtracted.
Check the CRA split-receipting page or ask an adviser before issuing receipts.
Next: Nonprofit funding resources
Related: Does a Canadian donor get a full receipt if they receive something in return?
Sources (read 2026-11-01): Split receipting
What is the corporate charitable deduction limit in the US?
For C corporations, charitable contributions are generally deductible up to 10% of taxable income, and excess amounts carry forward up to five years. From tax years beginning after December 31, 2025, the IRS says a corporation can deduct charitable contributions only to the extent they exceed 1% of taxable income.
This comes from an IRS video transcript on the 2025 tax law, so confirm details in the Code and current IRS publications. The temporary 25% limit in the IRS charitable page applied to 2020 only.
This does not cover individuals or pass-through owners, which have separate AGI-based limits. Recordkeeping and the receipt rules still apply.
This is general information, not tax advice. Ask a US tax professional.
Next: IRS business provisions transcript
Related: What are the US limits on charitable deductions?
Sources (read 2026-11-01): Understanding the Working Families Tax Cuts: business tax provisions (video transcript); Charitable contribution deductions (IRS)
Does a Canadian donor get a full receipt if they receive something in return?
Usually only for part of the amount. When a donor receives an advantage, a registered charity issues a receipt for the eligible amount: the fair market value of the gift minus the fair market value of the advantage.
The charity must be able to determine an accurate value for the advantage. The remaining amount must still be a voluntary gift.
A small benefit may be ignored under the de minimis rule, described in a separate answer.
Charities should keep their valuation records. Donors should ask what portion is receiptable. CRA guidance, not this page, controls. Speak to an adviser for event ticketing.
Next: Nonprofit funding resources
Related: Can a Canadian charity ignore the de minimis rule when a donor gets a small gift?; How big can the benefit be before a Canadian donation no longer counts as a gift?
Sources (read 2026-11-01): Split receipting
What is the US quid pro quo disclosure rule?
If a donor pays a charity more than $75 and receives goods or services in return, the charity must give a written disclosure statement. The $75 test applies to the whole payment, not just the deductible part.
The statement must say the deductible amount is limited to the payment minus the fair market value of what the donor received, and give a good-faith estimate of that value. The charity may give it when soliciting or when receiving the payment.
Exceptions include insubstantial benefits, payments with no gift element, intangible religious benefits, and certain membership benefits for $75 or less per year.
IRS says the penalty is $10 per contribution, capped at $5,000 per event or mailing, unless there is reasonable cause.
This is general information, not tax advice. Charities should review IRS guidance with an adviser.
Next: IRS quid pro quo rule
Related: Who can deduct charitable donations in the US?; Does a Canadian donor get a full receipt if they receive something in return?
Sources (read 2026-11-01): Charitable contributions: quid pro quo contributions
Can charities get GST/HST rebates in Canada?
Yes, eligible charities can claim a Public Service Bodies' rebate, usually 50% of the GST or the federal part of the HST on purchases where they cannot claim input tax credits.
CRA says charities in some participating provinces can also claim a share of the provincial part of HST using Schedule RC7066-SCH, for example 82% in Ontario and 50% in Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island. Non-participating provinces are 0%.
The claim uses Form GST66, with a time limit of four years from the return due date (registrants) or the claim period end (non-registrants). Keep invoices six years.
Charities' supplies are often exempt, and small supplier thresholds differ from businesses. This is general information, not tax advice. Check CRA guide RC4034.
Next: CRA PSB rebate guide
Related: What do Canadian charities need to know about issuing donation receipts?
Sources (read 2026-11-01): GST/HST Public Service Bodies' Rebate (RC4034); GST/HST information for charities (RC4082)
Can US employers exclude student loan repayments from employee pay?
Yes, within a limit. The IRS says that for 2026 employers can exclude up to $5,250 in total educational assistance, including student loan payments, from employee income.
That is one combined cap for education benefits, not a separate $5,250 for each type. The IRS summary does not describe the plan requirements or which loans qualify, so read the full guidance before you offer the benefit.
This is a tax exclusion, not a grant, and it does not pay your business anything. It is a way to compensate staff with less tax.
Because it depends on a written plan and your payroll setup, speak to a payroll provider or tax professional.
Next: United States funding resources
Sources (read 2026-11-01): Working Families Tax Cuts: businesses
How big can the benefit be before a Canadian donation no longer counts as a gift?
The advantage must not be worth more than 80% of the gift. The CRA page says that if the advantage's fair market value is above 80% of the gift's value, there is generally no real intention to give, so no receipt can be issued.
Example: on a $100 gift, a $50 ticket is within the threshold and a receipt can be issued. An $81 or higher advantage means no receipt.
In rare cases where the threshold is missed but the donor clearly meant to give, the donor must be able to prove that intent to the CRA.
Charities should not rely on proof of intent. When in doubt, ask a tax adviser.
Next: Nonprofit funding resources
Related: Does a Canadian donor get a full receipt if they receive something in return?
Sources (read 2026-11-01): Split receipting
What are Opportunity Zones?
Opportunity Zones are designated low-income communities where investors in a Qualified Opportunity Fund (QOF) can receive tax benefits on eligible capital gains. They are an investor tax incentive, not a grant to businesses.
The IRS FAQ says a QOF files a partnership or corporate return and self-certifies on Form 8996. Gains generally must be invested within 180 days. The FAQ describes deferral, a partial exclusion at five and seven years, and no tax on appreciation after ten years, with deferral ending at the earlier of sale or December 31, 2026.
These Q&As predate later changes. The IRS notes a 2025 change lowering the improvement threshold for rural zones, so check current rules.
A business in a zone gets no automatic benefit. This is general information, not tax or investment advice. Ask a US tax professional.
Next: IRS Opportunity Zones FAQ
Sources (read 2026-11-01): Opportunity zones frequently asked questions; One Big Beautiful Bill provisions
What is qualified small business stock exclusion?
Qualified small business stock (QSBS) rules can let some investors exclude part or all of the gain when selling eligible stock held long enough. It is an investor tax benefit under section 1202, not funding for the company.
An IRS video transcript says that for stock acquired after July 4, 2025, the per-issuer cap on excludable gain rises to $15 million, and stock held at least five years may qualify for a 100% exclusion, with a tiered system by holding period that the transcript explains unclearly.
Qualification turns on the issuer, its assets, the business type, the holding period and when the stock was acquired. Many details were not read here.
This is general information, not tax or investment advice. Founders and investors should review section 1202 with a US tax professional.
Next: IRS business provisions transcript
Sources (read 2026-11-01): Understanding the Working Families Tax Cuts: business tax provisions (video transcript)
What is the Canadian lifetime capital gains exemption?
It lets a Canadian resident individual deduct certain capital gains on selling qualified small business corporation shares. The CRA guide gives the 2025 limit as $1,250,000, but calls this a proposed change, so check the current figure. That would mean a maximum deduction of $625,000, which is 50% of the limit. The limit is indexed to inflation.
Shares must meet tests. At sale they must be shares of a small business corporation (90% or more of assets used mainly in an active Canadian business). For the 24 months before, it must have been a Canadian-controlled private corporation with more than 50% active-business assets, and no one outside you or a related person owned the share.
Residency throughout the year is generally required. This is a tax rule, not funding. Ask an accountant before a sale.
Next: Canada funding resources
Sources (read 2026-11-01): Capital gains guide T4037
What is the US small business health care tax credit?
It is a credit for small employers that pay part of employee health premiums. To qualify, the employer needs fewer than 25 full-time equivalent employees, average wages below an inflation-adjusted limit, and a qualified health plan through the SHOP Marketplace (or a limited exception). It must pay at least 50% of employee-only coverage.
The credit can be up to 50% of premiums for small business employers. It shrinks as the employer grows or as average wages rise.
It is available for two consecutive taxable years. Employers use Form 8941. It is part of the general business credit.
This is a tax credit, not a grant. Rules and amounts change with the tax year, so check the IRS page and a tax professional.
Next: United States funding resources
Related: Can a small tax-exempt employer claim the small business health care credit?
Sources (read 2026-11-01): Small business health care tax credit
Can a small tax-exempt employer claim the small business health care credit?
Yes, in some cases. The IRS says small tax-exempt employers can get a credit of up to 35% of the premiums they pay, compared with up to 50% for small business employers.
The same tests apply, including fewer than 25 full-time equivalent employees, average wages below the limit, and a qualified plan through the SHOP Marketplace or a limited exception. Tax-exempt employers may get a refundable portion.
To claim it, a tax-exempt organization reports the credit on line 44f of Form 990-T, which must be filed for that purpose.
This is a tax credit, not a grant. Check the IRS page for the current year and ask a tax professional.
Next: Nonprofit funding resources
Related: What is the US small business health care tax credit?
Sources (read 2026-11-01): Small business health care tax credit
Can I deduct business grants as income?
It depends on the grant and what it paid for. Do not assume a grant is tax-free or fully taxable.
CRA says government grants, subsidies and rebates for depreciable property usually reduce the capital cost of that property, instead of being added to income. Input tax credits get the same treatment. Where the amount cannot reduce an expense or an asset's cost, CRA says to report it as grants, credits and rebates income.
For incentives from non-government sources, CRA says you can either include the amount in income or subtract it from the property's capital cost.
This covers Canadian business income only. US treatment and provincial rules differ, and grant agreements may add terms.
This is general information, not tax advice. Ask an accountant before you file.
Next: CRA grants and subsidies
Related: Does NRC IRAP funding reduce my SR&ED claim?
Sources (read 2026-11-01): Grants, subsidies, and rebates (business income)
What CELER is and is not. celerfunding.com is operated by Celer Merchants Corporation. We are not a lender, grantmaker, government agency, investment portal or licensed adviser, and we are not an official partner of the programs mentioned here. This page is general information, not legal, tax, investment or credit advice. A CELER enquiry is not an official grant or loan application.