Scientific Research and Experimental Development (SR&ED): TAX CREDIT

Does your company participate in research and development? Do you develop and/or improve products or manufacturing processes?  If so, you may qualify for federal or provincial tax credits or refunds.

Tax incentives are offered to Canadian companies that develop or improve:

• New products
• Software or new types of databases
• Prototypes
• Custom machinery
• Access to the Internet
• Manufacturing processes
• New controls or automated tracking methods.

You may qualify if you are doing basic or applied research, or experimental development in any field of the natural sciences. This includes computer science, computer software, technology, operations research, mathematics, chemistry, physics, instrumentation systems, advanced manufacturing, etc.

The Canada Revenue Agency (CRA) offers federal refundable tax credits of 35% of qualifying expenses (including salaries, wages, consulting fees and materials).

Most provinces also have their own SR&ED tax credits, which could increase the total refundable amount.

CFCL Consulting can identify what projects are eligible, prepare your technical report and work in conjunction with your company's accountants for financial information. Our national network of management consultants have a high success rate with the SR&ED program applications and sound knowledge in industrial sectors such as information systems, control systems, electronics, computers, automation, and advanced manufacturing. We will Identify qualifying projects and save time and money as CFCL identifies which projects and expenditures are eligible for tax incentives.

This may include:

• Claiming current or past (unclaimed) qualified R&D expenditures
• Better planning of your technology budget, which increases your return on investment in R&D.
• Realistic sales targets
• Prepare your SR&ED submission

CFCL's qualified consultants may increase the likelihood that your claim will be approved. You focus on business while we:

• Interview your technical staff
• Improve or create your SR&ED reporting system
• Prepare the technical report required for submission to CRA
• Help prepare the job costing and taxation package required for submission to CRA