Last week, the 2019 Federal Budget was introduced and it included some announcements and changes that health science companies should be aware of.
To access the full 2019 Budget document, click here.
Changes to SR&ED tax incentive program (pg 110): The Federal Government is proposing to eliminate the income threshold for accessing the enhanced credit (35% refundable tax credit to eligible small and medium-sized businesses vs. 15% tax credit to all businesses in Canada performing SR&ED, while maintaining the capital threshold to ensure that the enhanced rate remains targeted toward SMEs.)
Establishing a regulatory sandbox for new and innovative medical products (pg 118): The Federal Government is proposing, through Health Canada, to modernize regulations to put in place a regulatory sandbox for new and innovative products.
Modernizing the regulation of clinical trials (pg 118): The Federal Government is proposing, through Health Canada, implement a risk-based approach to clinical trials to reduce costs to industry and academics by removing unnecessary requirements for low-risk drugs and trials.
Additional Student Work Placement opportunities (pg 54-55): The Federal Government is proposing to create an additional 44,000 work-integrated learning placements and opportunities per year by 2021, through the Student Work Placement Program which has been aimed at science, technology, engineering, math (STEM) and business programs to provide opportunities to gain paid work experience related to a field of study.
OBIO has advocated for many of these changes, including in OBIO’s 2017 white paper, “Tax Incentives for Growing Health Science Companies” which discusses the need for changes to SR&ED and the regulatory environment. The 2017 white paper is available here: http://www.obio.ca/publications-1/2017/5/tax-incentives-for-growing-health-science-companies.
In addition, through OBIO’s Health to Business Bridge program (H2BB) and our reporting on that program’s impact – “Bridging the Talent Gap” (2017) – OBIO has advocated for changes to support the development of talent and the next generation of health science industry leaders.
Finally, Robert Merson (Merson Consulting) has prepared his annual analysis of the Federal Budget 2019 which we can share with you.