The Scientific Research & Experimental Development (SR&ED) program is the largest source of funding by the Canadian government to encourage innovation in the form of income tax credits for businesses
How can the SR&ED program benefit my company?
The government recognizes that innovation is an expense that does not deliver immediate return on investment. In order to incentivise domestic businesses to remain competitive, you may be able to deduct SR&ED expenditures to reduce your tax bill.
What kind of work qualifies as SR&ED expenditures?
Work that is done to achieve technological advancement. This means creating new, or improving, existing: products, materials, processes, or devices
Work that is done to advance scientific knowledge with practical application
Work that is done to advance scientific knowledge without practical application
What expenditures can I claim?
Contracts that count as SR&ED work
Lease costs of equipment for the purposes of SR&ED
Overhead (either by traditional or proxy methods)
Work that is not SR&ED eligible
Market research or sales promotion
Social science & humanities research
Commercial production of a new or improved material, device, product, or process
Routine data collection
Whom can apply?
Most companies are eligible for SR&ED if they are working on creating a new, or improving, an existing: material, device, product, or process. The condition is that the endeavors are done by generating information or knowledge to advance their technological knowledge base – regardless of success or failure of experiments.
Is there a deadline for SR&ED application?
The SR&ED program is administered by the CRA and they have set a deadline no later than 18 months after the fiscal year end of which qualifiable SR&ED work was undertaken.
How do I make a claim?
Creating a valid SR&ED claim can be challenging. This is where Banhall Consulting can help you. We handle all technical and financial elements of a claim to ensure there is enough evidence to present to the CRA for an ITC refund.
Head Office PO Box 42109 RPO Guildford Surrey, BC V3R 1S5