SR&ED
Scientific Research and Experimental Development
Get valuable tax credits on your innovations!
What if you could get back in cash 40 per cent of your investment in innovative improvements to products or processes within your business? For example, $1 million in eligible investment could result in $415,000 in actual cash back under Canada’s Scientific Research and Experimental Development (SRED) 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.
How do you know if you are missing out on a cash windfall or tax credits?
- 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 SRED but you do not want to get bogged down with bureaucratic red tape.
Call SB Partners at 905-632-5978 for an initial no-fee consultation to find out if you qualify.
Why it is important to consider SRED?
A surprising number of manufacturers and businesses are failing to take advantage of these valuable tax credits or actual cash back. Basic awareness about the program has increased, and the smarter-run companies in most engineering and technology areas 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 SRED program serious consideration. Here’s what you can get:
- 20 to 35 per cent of eligible current and capital expenditures in federal tax credits
- 10 per cent of eligible expenditures in Ontario tax credits
- 100 per cent deduction for eligible capital costs
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 SRED?
In most cases, more than what you may think! What counts as SRED 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?
- Salaries
- Materials
- Contract and third party payments
- Equipment lease costs
- Capital expenditures
- Overhead expenditures
Our experience
Since 1989, we have had several years of experience synergizing the technology, accounting and tax aspects of SRED 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.
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What our Clients Say
Michael Andlauer, Chairman, Andlauer Management Group
“Our evolution to a national transportation and logistics group has provided many challenges. Over the last 10 years, the SB Partners team has contributed to our success by offering creative financial and business advice along the way.”