SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT (SR&ED) SUBSIDIES AND TAX CREDITS
WHAT INCENTIVES ARE AVAILABLE?
There are some grants that you can get in advance of starting your project that will pay for 50% of the costs. Then after the completion of the project or at the end of each fiscal year, you can apply for tax credits for eligible research. Savings can be as high as 75% of the total cost of doing the scientific research or experimental development. This means that an eligible project that was going to cost $200,000 will now only cost your company $50,000.
TIMING OF PROJECTS?
In order to apply for a grant in advance of a project, you must attain government approval prior to spending any money on the project. Any expenditure prior to formal approval of the project will likely disqualify the entire project for the grant. However, the tax credits are attained after project completion. All current research project tax credit claims must be filed with either this fiscal years tax return (T2) or next years. Thus there is a potential to claim last fiscal years projects with this years corporate tax return. You have 6 months from your fiscal year end to file your tax return so, we can effectively make a claim for projects as far back as 30 months.
WHAT CONSTITUTES A RESEARCH AND DEVELOPMENT PROJECT?
A project generally has to be unique and innovative. It can be identified in the development of a new products, new processes, complex software development, or any other innovative activity. In order to determine if you have an eligible project you must ask your technical people three questions as follows:
Was There Potential For Scientific Advancement?
Was There Some Technical Uncertainty?
Did You Follow A Systematic Investigation Process?
If the answer is yes to these questions then we should investigate further.
Call us at (204)989-5666 or E-MAIL
US for more info.
THIS TAX CREDIT IS IN CANADA ONLY