Grant Analysis: IP Commercialization Tax Holiday - Eligibility Attestation ### 📋 Eligible Entities - Newly established corporations dedicated to commercializing intellectual property - Corporations must be incorporated in Canada (federal or provincial) - The corporation must be specifically formed for the purpose of commercializing IP (patents, trademarks, copyrights, trade secrets, etc.) - Must not have previously carried on business before applying for the attestation - Existing corporations expanding into IP commercialization are not eligible (new entity requirement is strict) ### 💰 Funding Details - Tax holiday relief rather than direct grant funding - Temporary income tax exemption on profits derived from IP commercialization - No cash grant provided; benefit is realized through reduced tax liability - No matching requirements or cost-sharing obligations - Non-repayable benefit (tax relief, not a loan) - Duration and percentage of tax reduction determined by tax authority regulations ### 🛠️ Approved Expenses - IP commercialization activities including: - Licensing of intellectual property - Sale of IP rights or patents - Royalty income from IP - Revenue-generating commercialization of proprietary technology - Marketing and distribution of IP-based products/services - Tax relief applies to income and profits generated directly from IP commercialization - Indirect costs and general operating expenses not directly eligible for the tax benefit ### ⚠️ Conditions & Milestones - Attestation requirement: Must obtain an eligibility attestation from the relevant tax authority before commencing operations - New entity condition: Corporation must be newly created; no prior business operations permitted - IP-focused mandate: Corporate bylaws and business plan must clearly demonstrate primary purpose is IP commercialization - Documentation: Must provide proof of IP ownership or licensing agreements - Timeline: Attestation must be secured prior to tax year in which benefits are claimed - Compliance: Corporation must maintain records demonstrating IP-related income streams separately - Revocation risk: Attestation may be revoked if corporation deviates from stated IP commercialization purpose