Posts Tagged ‘IRAP’

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.

The Industrial Research Assistance Program that the National Research Council of Canada has (NRC-IRAP) has long been of assistance to companies in Canada who need funding for research purposes. About a month ago, NRC-IRAP announced a new review process: the Small Project Accelerated Review Process.

This process was designed to help grow the business of SMEs in Canada – help small and medium sized businesses not just with R&D efforts, but with market research or process changes that will help benefit and grow your company.

What does this mean for you?

Quite simply, if you are a small or medium sized business, and are only doing a project that requires a maximum contribution of $50,000 from NRC-IRAP then the NRC-IRAP has created a streamlined process to get you your funding FAST.

So what kind of projects are acceptable for the accelerated review process?

• R&D projects that are limited in scope and nature
• Lean manufacturing/productivity studies
• Prototype engineering
• Development of business plans
• Branding creation and enhancements
• Market research studies

There are of course a lot of other types of projects acceptable for the review process, but this is just a small selection to give you an idea of the great variety there is that is applicable. You can get more information about this new funding process here.

The cost of borrowing money just went up. Unlike their US counterparts, Canadian banks that held positions in high-risk US mortgages will likely not receive a bail-out package.  The net impact of the mortgage crisis is that Canadian banks will have to increase their lending rates to make up for their losses.

This is a great opportunity to explore alternative financing options.  Two programs which many businesses are not aware of are the federal government’s IRAP (Industrial Research Assistance Program) and SR&ED (Scientific Research and Experimental Development) programs.

IRAP is run in conjunction with the National Research Council of Canada (NCR), and provides non-repayable contributions to Canadian small and medium-sized enterprises (SMEs) interested in growing by using technology to commercialize services, products and processes in Canadian and international markets. NRC-IRAP also provides mentoring support and invests on a cost-shared basis for research and pre-competitive development technical projects, upon assessment of a project and firm by a team of Industrial Technology Advisors.  Canadian SMEs with under 500 employees and industrial associations desiring to enhance their technological capability are eligible for support.

The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada. It is the largest single source of federal government support for industrial R&D. The SR&ED program gives claimants cash refunds and/or tax credits for their expenditures on eligible R&D work done in Canada.