SR & ED Consulting
hen you think of the term Scientific Research and Experimental Development you may think of test tubes and scientists in white lab coats. In fact, even the most basic development work which is carried out by most businesses in many industries may qualify as an eligible SR & ED activity.
Is your business getting its fair share
of these lucrative incentives?
What is SR & ED?
There are three basic types of work that may qualify as SR & ED:
- Basic research - activities carried out to advance a particular scientific knowledge without reference to a specific application;
- Applied research - activities carried out to advance a particular scientific knowledge with a view to a specific application; and
- Experimental development - activities designed to create new, or improve existing materials, products or processes.
For the majority of companies, large and small, qualifying activities are in the form of the third type of work; Experimental Development.
What are the SR & ED incentives available to your business?
Canada has some of the most generous incentive programs available for businesses that carryout SR & ED.
There are four different incentives available to businesses that conduct SR & ED:
- An immediate write off of SR & ED expenditures, including capital expenditures, used 90% or more in the activity. Unused amounts can be carried forward to a future year;
- Claim a Federal tax credit of up to 35% of the eligible SR & ED expenditures against the Federal corporate tax liability. For some companies an immediate cash refund is available in the absence of a Federal corporate tax liability;
- Carryforward unused Federal credits ten years or carryback three years;
- Certain provinces administer their own SR & ED incentive programs which offer similar tax credits and immediate tax refunds for qualifying companies.
Phomin Leslie can assist your company in identifying qualifying activities and ensure that your company gets its fair share of these generous incentives.
Call us today to request a no-obligation evaluation of your businesses activities. Following our review we will provide you with a preliminary written report which will recommend a course of action designed to maximize your SR & ED claim.
