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.