Running a business with research and developmental focus comes with a great number of expenditures in order to consistently conduct experiments. A stable source of funding allows R&D companies to discover new research methods and advance in experimental results without hesitation and fear of insufficient finances.
Fortunately, the Canadian Government recognizes the immense value of R&D businesses in the Canadian innovation industry. The Scientific Research and Experimental Development (SR&ED) provide one of the most generous R&D cash refund and tax incentive programs in the world.
If you are yet to take advantage of this program, be sure to read on!
In combination with various provincial programs, companies may recover up to 68% of their qualified costs. EVAMAX can help you utilize the funding your company is eligible for! Keep an eye out for various names SR&ED goes by so you don’t get lost in grant jargon – SRED, R&D Tax Credit, Research Tax Credit, R&D Credit, Research & Experimentation Tax Credit, Investment Tax Credit, and R&D Funding.
SR&ED Comes in 3 Forms:
- Reduction of taxes
- An Investment Tax Credit
- Cash Refund
SR&ED continues to stand as the largest federal program that supports R&D in Canada. In fact, the program provides more than $3 billion in tax incentives to over 20,000 claimants each year.
SR&ED Supports 3 Types of Research:
- Basic Research: Work done to advance scientific knowledge without any practical application in mind.
- Applied Research: Work was done to advance scientific knowledge specifically for a practical purpose
- Experimental Development: Work done to achieve technological advancement to create new or improve existing products or processes
Keep in mind the work must be done in Canada and can be done either by the company itself or on behalf of the company by another party such as a contractor or research institute.
At EVAMAX, our team of experienced SR&ED consultants will walk you through the process of explaining the program, if your business is eligible and how you can claim your expenditures.
Here are additional facts about the SR&ED Program to guide you in deciding whether this program is right for you:
- Any industry can get benefits of the SR&ED Program if there has been an attempt for a technological improvement/advancement. These benefits include not only the research cost but also wages, capital expenditures, and overheads
- It has more incentives for small companies than larger corporations
- You can get a refund EVEN IF the experimentation failed
- You can get a refund even if you have not paid taxes or declared loss
- It’s about expenditure, NOT sales
- Program is more technical than financial
Here’s what you can discuss with our team at EVAMAX today:
- Have you faced challenges with SR&ED reviews or objections?
- You’ve been successfully claiming SR&ED incentives but need a second opinion
- If you’re not sure about maximizing your benefits OR never heard of the SR&ED program
- You think it’s way too much paperwork and not worth the time
- How much cash your company could be eligible for
Apart from SR&ED, do you want to know all the R&D Grants and Incentives your company is eligible for? We understand the importance of R&D and have supported numerous clients in their innovation journey filing grants and incentives.
Feel free to reach out to EVAMAX today for a no-obligation consultation.