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Why are SR&ED Incentives
Needed?
The SR&ED tax credit program is administered by Canada’s
federal government with the objective of encouraging innovation,
research and development in Canada. Canada’s research and
development
(R & D) tax credits are considered amongst the most generous
of tax credit programs in the world. As the Conference Board
of Canada and other think-tanks consistently report, such
federal incentives are needed to overcome funding and other
imperfections in the market, keep Canadian business investing
in innovation through experimental research and development
research, and thereby keep Canada at the forefront of innovation.
Not only does the SR&ED tax credit program support scientific
research, which would be expected to receive government support,
it encourages experimental projects / experimental research
/ development research undertaken by business, so long as
defined
are met.
Significant Funding for Your
Company’s Research and Development
The SR&ED (often fondly pronounced “shred’) Program has
been in effect in Canada in various incarnations since the
post-war era (under other names), and continues to evolve.
For example, the manufacturing tax credit (now superceded)
was once a component of the Federal Government’s encouragement
of industrial research and development. The Tax Credits available
and the attendant rules and guidelines have changed significantly
even during the last two decades, with the current rules bringing
as much as a 35% Federal cash refund (plus potential Provincial
Government increments) to qualified applicants.
Does My Business’ Development
Research Qualify?
Your business needn’t be conducting “white coat” research
to qualify. The program covers a wide spectrum of experimental
projects, from scientific research to development research
within a field of science or technology (i.e. the work cannot
be in the Social Sciences or Humanities). For example, while
specific exclusions are made such as solely exploring or drilling
for energy or natural resources, the tax credit is available
for experimental projects within the energy industry that
meet the designated .
New product development can be a strong indicator of eligibility.
The goal of Technology Strategies
Group Inc. (TSGI) is to assist your company with the SR&ED
program so as to have minimal distraction from your research
and development efforts, so often the core and lifeblood of
your (and Canada’s) future.
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