In a letter to Finance Minister Jim Flaherty, the Canadian Manufacturing Coalition (CMC) addressed concerns about recent changes to the SR&ED program.

1. Reducing the SR&ED Investment Tax Credit (ITC) rate from 20% to 15% will directly and negatively affect Canada’s top R&D performers.

2. Eliminating capital expenditures from eligible expenses will significantly and negatively impact the largest users of SR&ED – Canada’s manufacturing sector – which is much more capital intensive than other sectors.

According to CMC,  the budget includes other measures in support of science and technology, including increasing funding for NRC-IRAP and the Canadian Foundation for Innovation. However these measures will not offset the proposed changes to the SR&ED program in the manufacturing sector.