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SR&ED Information

What is SR&ED?

  • Stands for Scientific Research and Experimental Development
  • Purpose - Encourage technological development in Canada
  • Provides $2 billion per year to Canadian companies

Benefits of SR&ED

  • Receive money back for eligible R&D expenditures incurred
  • Amount returned depends on previous year's taxable revenue:
    • 20% tax credit on eligible SR&ED expenses OR
    • 41.5% cash on eligible SR&ED expenses
An Example of What You Could Receive for a CCPC *
(Some conditions apply)

 

Total

Eligible SR&ED Expenditures

$1,000,000

% Return - Provincial **

10%

% Return - Federal (35% of remainder)

31.5%

Total %

Total $

41.5%

$415,000

* CCPC – Canadian Controlled Private Corporation
** The Provincial rate of return varies from province to province.

What Work Qualifies for SR&ED?

Technical Content: The work claimed must adhere to the scientific process. It must involve a systematic investigation and/or experimentation in a field of science.

Technical Uncertainty: The existence of an uncertainty implies that there is no text-book solution (i.e. known methods or procedures) to solve a problem in an existing field of science. The work that is claimable must go above and beyond the existing knowledge base (i.e. base line).

Technical Advancement: A conclusion must be derived from the experimentation that can be transferable to other applications.

Contact us for a free consultation and we will help you determine what's eligible.

Examples of industries that are eligible for SR&ED

  • machinery and equipment
  • pattern, tool and design
  • plastics and textiles
  • printing and packaging
  • transportation
  • and more!
  • travel
  • insurance
  • manufacturing
  • information technology
  • dental
  • pharmaceutical
  • chemical processing
  • computer sciences
  • design and construction
  • electronics and optics
  • environmental engineering
  • food and beverage
  • life and health sciences
  • material development
 

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