The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive to encourage Canadian businesses to conduct research and development (R & D) in Canada.
Qualifying Projects

To qualify, your work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.

  • Process Development or Improvements
  • Product Development or Improvements

    • All qualifying projects must meet the following criteria:
    Technical Advancement

    The advancement does not necessarily have to be in the context of the universe or your industry.  It can often be an advance to your company as long as the information to make the advance is not readily available.  The technical advance can involve combining two existing technologies to create a slightly different technology.
    Technical Uncertainty

    There also must be a reasonable amount of uncertainty from a technical standpoint, however, Revenue Canada does not expect that every project must be mission impossible!

    Examples of work that could qualify for SR&ED tax credits includes:

  • experimental development to achieve technological advancement to create new materials,
       devices, products or processes, or improve existing ones;
  • applied research to advance scientific knowledge with a specific practical application in view;
  • basic research to advance scientific knowledge without a specific practical application in view;
       and
  • support work in engineering, design, operations research, mathematical analysis, computer
       programmng, data collection, testing or psychological research, but only if the work is
       commensurate with; and directly supports, the eligible experimental development, or applied
       or basic research.
    		•

    Qualifying Expenditures

  • Labour dollars at cost
  • Overhead calculation at 65% of each labour dollar
  • Direct materials consumed
  • Equipment (R & D only or failed)
  • Contractors and Subcontractors
    		•

    Unsure if your project qualifies?  We’re experts at the SR&ED Program. 
    Call us for a free consultation.

    (204) 633-1952
    What Refunds/Credits are available?
  • Eligible for small business deduction - 35%
       (with Provincial Programs as high as 44.75%)
     
  • Public Company or large private corporation
        - 20% to 32%
    		•

    Related Links

  • Canada Customs and Revenue Agency SR & ED
  • The Canadian Technology Network
  • Industry Canada
  • Standards Council of Canada
    		•

    Copyright TM Spencer & Associates 2004
    All rights reserved.
    TM Spencer & Associates, Unit 150 - 99 Scurfield Blvd., Winnipeg, MB  R3Y 1Y1  (204) 633-1952
    [Home] [About Us] [Our Services] [Qualifying] [Testimonials] [Contact]