Scientific Research & Experimental Development (SR&ED) Refund

 

The Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development activity (R&D) in Canada.  It is the largest single source of federal government support for industrial R&D.

Many companies may qualify for this incentive but are unable to identify and capitalize on this opportunity.

The eligible activity is expected to lead to new, improved, or technologically advanced products or processes. Our SR&ED experts will evaluate your business activities against the CRA criteria and assist you in determining if you qualify for the SR&ED refund.  We will also assist you in completing Form T661 along with the following technical reports and documentation that are filed with your annual corporate tax return:

 

  1. Project description

  2. Technological objectives

  3. Technological uncertainty

  4. Knowledge base level

  5. Technological advancement

  6. Description of work

  7. Expenditure detail, including wages, materials, machinery, equipment, applicable overhead, and SR&ED contracts

  8. Supporting information and documentation

 

Here are some questions to evaluate if your company may qualify for the SR&ED refund:

 

  1. Have you undertaken a project which may allow you to expand your product line(s)?

  2. Have you developed a new product, or are you in the process of developing one?

  3. Are you improving an existing product or process to meet new criteria?

  4. Are you improving the methods by which an existing product is produced?

  5. Are you investigating new materials to use in an existing product?

  6. Are you exploring new uses for an existing product, process or piece of equipment?

  7. Are you spending money on improvements that aim to minimize the environmental impact of your manufacturing process?

  8. Does your business create customized products?

 

R&D projects under the following industries may qualify for SR&ED refunds:

  1. Chemical

  2. Software

  3. Textile

  4. Plastic

  5. Automotive

  6. Pharmacy

  7. Pulp and paper

  8. Food & beverage

  9. Technology