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The Scientific Research and Experimental Development (SR & ED) program is an incentive to encourage Canadian businesses to conduct research and development (R & D) in Canada. Qualifying Projects Typically, qualifying projects fall into one of two categories:
Many envision research and development involving test tubes, white coats and laboratories. In fact, research and development is inherent in almost every manufacturing or software development environment. Product improvement and process developments are syonominous with almost every manufacturing endeavour. This can range from candy confectioners to toy developers. These product improvements and process developments almost always qualify for research and development refunds.
Qualifying projects must meet the following criteria:
Technical AdvancementThe 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 UncertaintyThere should be a reasonable amount of uncertainty from a technical standpoint, however, Revenue Canada does not expect that every project must be mission impossible! Qualifying Expenditures
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% Unsure if your project qualifies? We're experts at the SR&ED Program. Call us for a free consultation at (204) 633-1952. Related Links Canada Customs and Revenue Agency SR & ED
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