Posts Tagged ‘funding’

Northbridge Consultants is the industry leader in maximizing monetary gains for Canadian Businesses through the Federal SR&ED Program. We accomplish this by identifying more SRED-eligible projects, and by supporting our clients every step of the way (from the time we first tour their facilities, through the preparation of all necessary documentation, right up until the CRA Reviews are completed). This approach has lead to a one hundred percent acceptance rate for claims we have prepared during our twenty-five year history, and our clients typically receive ninety-five percent of the amount submitted on their behalf.

In addition to SR&ED Tax Credits Canadian Businesses can also obtain funds in advance of their projects. The National Research Council provides funding for activities that generate new employment in the technology or science fields through their IRAP Program. Generally, fifty percent of project labour costs are provided. In special circumstances costs for equipment, studies, lab fees, specialized materials and contractor fees are also funded.

Another federal program available to Canadian Industries is the ecoENERGY Retrofit Incentive. This program encourages businesses to modify buildings, equipment and systems through upgrades to reduce the facility’s energy use. The program provides up to twenty-five percent of project costs to a maximum $50,000 per application. Using energy more efficiently helps industries to be more competitive and reduces greenhouse gas emissions and air pollution leading to a cleaner environment for all Canadians.

Your Northbridge Account Manager will assist you in understanding NRC Programs, and how they can be utilized in conjunction with your SR&ED Tax Credit claim.

Canadian companies definitely have an advantage when it comes to research and development tax credits. Canada is rated among the Top G20 countries when it comes to Research and Development. The government encourages Canadian companies to do their research in Canada with tax credits and cash back incentives to remain manufacturing in Canada.

Foreign companies can benefit as well. The benefit to a foreign owned company can be the significant reduction or even elimination of their Canadian taxes owed, with the benefit of retaining the rights to the SR&ED program.

Foreign companies become eligible when they become a subsidiary of a foreign parent and can claim 20% tax credits on qualifying SR&ED activities. Another way to become eligible is to become a Canadian-controlled private corporation (CCPC), as long as an owner owns less than 50% of the company’s shares, so the majority of ownership is Canadian. Becoming a CCPC allows the company to claim 35% cash back on qualifying SR&ED activities.

For more information check out this link: http://investincanada.gc.ca/eng/publications/rd-tax-credit-fact-sheet.aspx

With the number of government grants, loans and other assistance available, we have frequently been asked whether companies can still file for the SR&ED program if they’re taking advantage of other assistance programs. There are so many different programs available: from IRAP, to small business grants, to funding that will help make things more energy efficient, to workshare programs, just to name a few.

So what does this mean when a company files for the SR&ED program? CAN a company get money back through the SR&ED program if they’ve already received some sort of government assistance for the project?

Well, the short answer is both yes and no.

Mainly, it depends on how much of your project was covered by other government assistance programs. If your project was fully-funded by other grants and loans, then your project is unfortunately not applicable for the SR&ED program.

Or, as it more often happens, if your project was only partially funded by the government, then you can claim for SR&ED on the portion that was not funded.

The SR&ED program is vital for any Canadian business doing work that runs into technological obstacles – don’t forget to include it in your funding plans.