Municipal Incentives
The City of Stratford provides numerous incentives to assist local businesses and to generate development activities which make the city more prosperous. The most influential incentive offered by the City is that it does not charge a levy for industrial development/construction (also known as No Industrial Development Charges). The City of Stratford also offers a graduated building permit fee for industrial construction. For the first 50,000 square feet, building permit fees are eighty-nine cents per square foot and for all square feet above 50,000 square feet the permit fees drops to forty-five cents per square foot.
There are a substantial number of properties within the City of Stratford that have been previously developed for industrial or commercial uses and may be contaminated as a result of these former activities. These properties are referred to as "brownfield" properties which are idled or under-used industrial or commercial properties where expansion or redevelopment is complicated by real or perceived environmental contamination that can make redevelopment of the property financially or logistically prohibitive. Please contact the City’s Economic Development Department to learn more about the incentives that are available to rejuvenate these properties.
The HERITAGE CONSERVATION DISTRICT BUILDING CODE UPGRADE LOAN PROGRAM is intended to assist property owners with the financing of building improvements in the Heritage Conservation District (HCD) that are often necessary to ensure older buildings comply with today’s Ontario Building Code requirements. The costs associated with these improvements frequently pose a major issue for building owners wanting to upgrade their properties. This issue is amplified in the HCD where much of the building stock is older and needs major improvements to meet present-day Building Code standards. Building Code Upgrade Loan Program will provide long-term, interest free loans for HCD building improvements that address health and safety issues and are deemed necessary to meet Building Code standards.
The FAÇADE LOAN IMPROVEMENT PROGRAM is intended to encourage Heritage Conservation District (HCD) property owners and merchants (through a private agreement with a landowner) to undertake structural and façade improvement to commercial buildings. This program allows the City to offer financial assistance to allow the completion of façade improvements in accordance with certain municipal standards. The HCD Façade Improvement Loan Program will provide long-term, interest-free loans for HCD façade improvements that conform within the “City of Stratford Heritage Conservation District Standards”.
The HERITAGE CONSERVATION DISTRICT (HCD) REHABILITATION GRANT PROGRAM is intended to provide economic incentive for the rehabilitation of residential and commercial properties in the HCD. The annual grant amount is calculated based upon the increase in the municipal portion of property taxes that is directly related to a rehabilitation project (i.e. tax increase that results from the increase in assessment relating to an improvement project). Annual grants are provided to property owners over a ten-year period and the grant amounts decline over this period. While it is not structured as a tax rebate program, the effect of this program is to phase in the tax increase, which results from rehabilitation, over a period of ten years. The grants will only be issued after the work triggering the reassessment has been completed and inspected by the city, after the owner has entered into a grant agreement with the City, and after the owner has completely paid all of the taxes (pre- and post-reassessment) for a given year.
Provincial and Federal Incentives
The governments of Ontario and Canada assist employers by providing tax incentives and wage subsidies for hiring and training. Some of the most popular incentives are
Advanced Manufacturing Investment Strategy Program (AIMS) –
Ministry of Economic Development and Trade
Description: Repayable loan program intended to encourage eligible companies operating in Ontario to transform processes and adopt leading edge technologies that will increase productivity and competitiveness.
Terms/Assistance/Benefits: Eligible projects must (over 5 years) have a minimum total project investment of $25 million or create/retain 100 or more high value jobs. This repayable loan program is interest-free for up to the first five years and will provide loans for up to 10 percent of total project costs.
ecoEnergy for Renewable Power
Description: $1.48 billion financial incentive to increase Canada’s supply of clean electricity from renewable sources such as wind, biomass, low-impact hydro, geothermal, solar photovoltaic and ocean energy.
Terms/Assistance/Benefits: One cent per kilowatt-hour for up to 10 years to eligible low-impact, renewable electricity projects constructed between April 1, 2007 and March 31, 2011. Maximum contribution payable per qualifying project will be $80 million over 10 years.
Feed-in Tariff Program – Ontario Power Authority
Description: Complementary to the 2009 Green Energy Act, this proposed new procurement program guarantees specific prices for various forms of renewable electricity production sources, including on-shore and off-shore wind, hydroelectric, solar, biogas, biomass and landfill gas.
Terms/Assistance/Benefits: As North America's first guaranteed pricing structure, FIT offers a 20-year contract to developers of renewable energy projects that covers total project costs and provides a reasonable rate of return.
Innovation Tax Credit (OITC) – Ontario
Description: Refundable provincial tax credit on Scientific Research & Experimental Developmental (SR&ED) expenditure claims in Ontario.
Terms/Assistance/Benefits: 10% refundable tax credit, qualifying expenses are 100% current expenses or 40% of capital expense, maximum claim up to $300,000
Interactive Digital Media Tax Credit (OIDMTC) – Ontario
Description: Ontario refundable tax credit for labour, marketing and distribution expenditures for the creation of interactive digital media products.
Terms/Assistance/Benefits: 40% of non-specified and 35% for specified corporate qualifying tax rates after March 26, 2009.
Ontario Centres of Excellence – Investment Accelerator Fund Program
Description: A major Ontario Government commercialization initiative to provide eligible technology-based start-ups with seed capital up to $500,000 to support technology development, market potential analysis, prototype development, early customer trials, promotion and patenting costs.
Terms/Assistance/Benefits: Investments are generally made in the form of a convertible debenture (loan) in return for a nominal equity position.
Ontario Emerging Technologies Fund – Ontario Capital Growth Corporation
Description: Up to $5 million initial investment to leverage private sector capital in clean technology, life sciences and advanced health technologies, digital media and information and communications technology sectors. Program will make a direct co-investment into a successful company alongside the qualified investor.
Terms/Assistance/Benefits: Investee companies interested in investment must work through qualified investors. Only qualified investors can propose investments to the fund for consideration.
Rural Economic Development (RED) Program
Description: The Rural Economic Development Program invests in projects that support sustainable rural economies and community partnerships, under the priorities of health-care services, community revitalization and economic development, and skills enhancement.
Terms/Assistance/Benefits: Projects are cost-shared, with the provincial government investing up to 50 per cent of the project’s eligible cost in most cases.
Scientific Research and Experimental Development
Expenditures (SR & ED) – Ontario
Description: A deduction in respect of Ontario research and development expenses.
Terms/Assistance/Benefits: An incentive for corporations undertaking SR & ED in Ontario for tax years ending before January 1, 2009.
Scientific Research and Experimental Development
Tax Incentive Program – Canada Revenue Agency
Description: The largest single source of federal support for industrial R & D. Investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR & ED contracts.
Terms/Assistance/Benefits: Up to 35% tax credit for first $2 million of eligible expenditures of Canadian-controlled private corporations.
For a more complete list of government programs, visit
http://www.sse.gov.on.ca/medt/investinontario/en/Pages/Government_Programs.aspx.
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