New Technological Inventions – R&D Funding of Oilsands Machinery
New product development (or existing product improvement) can result in new or improved Oilsands machinery. Your company’s quest to discover new reserves, turn potential reserves into proven reserves, or to increase the bottom line through R&D involving improvements to oilsands machinery, or new technological inventions, may qualify for SR&ED investment tax credits or IRAP funding. For SR&ED funding, there is no requirement for a patent for the new technological inventions; as long as the criteria are met and the technological challenges could not be met from knowledge available in the public domain, or solved using routine practices in oil and gas/engineering.

R & D Funding in the Oilsands Industry
The SR&ED tax credit definition specifically excludes the activities of “prospecting, exploring or drilling for, or producing, minerals, petroleum, or natural gas” and “commercial production of a new or improved material device, or product”. The R&D funding cycle of oilsands machinery is associated with enormous costs and a necessity for field trials which can involve complications connected with the above exclusion. However, if your company’s new product development process (or existing product improvement process) has distinguished research and development activity that qualifies from that which does not, SR&ED funding can be accessible for qualifying activity. TSGI may be able to assist with that segregation process, and can also assist you with developing tracking processes for future claims. Oil and gas innovations are an expensive proposition and often require testing in a field environment, sometimes, out of necessity, with potential or existing customers, requiring careful segregation of activity necessary for the new product development (or existing product improvement) from regular commercial or exploration activity.

Oil and Gas Engineering
On the positive side of the ledger, “engineering” activity (along with other support activity) commensurate with the needs and in support of technological advancement that is embodied in a new product development (or existing product improvement) is specifically included as a qualifying activity in the definition of SR&ED. Alberta oil and Gas companies, and those located elsewhere in Canada, may have significant such supporting activity for new technological inventions or improvements to oilsands machinery.

TSGI Experience
TSGI, located in Calgary, Alberta, Canada currently has clients in, and has filed numerous SR&ED claims in the field of, new product development and existing product improvement of oilsands machinery.