SR&ED Addressed by the Provincial Budgets of Western Provinces

The three western provinces have each addressed SR&ED in their respective 2012 provincial budgets.  Alberta has enhanced their SR&ED program by $25 million, Saskatchewan has  reduced their SR&ED program, and British Columbia did not make any changes to their SR&ED program.  To follow is a summary of their proposed changes:

Alberta Enhances Investment in SR&ED

– 10% refundable tax credit.
– Federal SR&ED benefits currently deducted from qualified expenditures for Alberta’s SR&ED in subsequent year. This “grind” will be eliminated effective for tax years ending after March 31, 2012.

Saskatchewan Reduces Investment in SR&ED

– 15% refundable SR&ED benefit
– Non-CCPCs will be excluded from receiving refundable benefits
– CCPCs will be limited to an annual maximum of $3 million in qualifying expenditures

No Changes in SR&ED for British Columbia

– 10% tax credit
– No changes to SR&ED program, but expiry date of August 31, 2014 not yet extended.

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