Scientific Research & Experimental Development (SR&ED) Tax Credits
Get valuable tax credits on your innovations!
What if you could get back in cash up to 45 per cent of your investment in innovative improvements to products or processes within your business? For example, $50,000 in eligible investment could result in $22,500 in actual cash back or tax credits under Canada’s Scientific Research and Experimental Development (SR&ED) program.
Wouldn’t such a program be worth your while? The scope of work eligible for such tax incentives is much wider than you may think – considerably more than ‘hi-tech’ advancements in product or technology.
You may be eligible for SR&ED tax credits if:
- You have undertaken projects that only technical personnel could do.
- You tried to make innovative changes to your product to maintain your profitability.
- You tried to improve processes on the shop floor.
- You have heard of SR&ED but you do not want to get bogged down with bureaucratic red tape.
Call Wayne Spencer, SR&ED Manager at 905-633-6356 for an initial no-fee consultation to find out if you qualify.
Why it is important to consider SR&ED?
A surprising number of manufacturers and businesses are failing to take advantage of these valuable tax credits. Basic awareness about the program has increased and companies are taking care to submit well-compiled claims. They can even factor in such credits into their bidding process, making them more competitive.
A business doing eligible work owes it to its owners or shareholders to give the SR&ED program serious consideration. Here’s what you can get:
- 20 to 35 per cent of eligible current expenditures in federal tax credits
- 10 per cent of eligible expenditures in Ontario tax refunds, plus an additional 4.5 per cent in tax credits
Even if you are not Canadian-controlled, you would still qualify for 20 per cent of eligible expenditures as a tax credit that can be carried forward for up to 10 years. The Ontario tax credit program remains available to you at the same 10 per cent rate.
What work is eligible for SR&ED?
In most cases, more than what you may think! What counts as SR&ED is innovative work in a science or technology area performed in Canada by for-profit companies. Eligible projects can include work in:
- Basic research
- Applied research of experimental development
- Certain kinds of directly related supporting activities also qualify for this purpose.
What costs can be claimed?
- Contract and third party payments
- Equipment lease costs to do SR&ED
- Capital expenditures to do SR&ED
- Overhead expenditures
Since 1989, we have had several years of experience synergizing the technology, accounting and tax aspects of SR&ED claims on behalf of numerous Canadian and multinational industrial clients. We can make the process a lot easier by identifying eligible work, by helping prepare a high-quality claim document, and then by representing you to the CRA. We will also help you to properly document your project work to comply with the program requirements. Call SB Partners for an initial no-fee consultation.
SB Partners Announces SR&ED Administrative Management Services Program
SB Partners is pleased to announce a FREE, new service that will assist our SR&ED clients in documentation that supports their SR&ED claims. Clients do not need complicated tracking systems or lengthy review meetings. All information is gathered for you in a timely fashion while it is still current, thereby reducing the possibility of overlooking some expenses. The new system will identify work performed for each project including results, conclusions and next step decisions. As well, it will document employee labour hours and expenses for materials and subcontractors. Our in-house client specific system is set up for each project and closely monitored and organized by our SR&ED Administrative Assistants.