SR&ED Opportunities in Chemical Manufacturing
Some Scenarios in Chemical Industries that may qualify as SR&ED projects:
- Developing or improving production and scale-up processes. This may include experimentation involving mixing, heat transfer, mass transfer, crystallization, drying etc. For example, redesigning vaporization equipment and product collection systems to improve throughput and thermal performance.
- Developing advanced automation, process control, and monitoring systems. This may include improving control of interacting process variables, developing new sensor or feedback strategies, or automating operations. For example, a chemical processing plant may develop integrated PLC-based control, automated material transfer, and sensor systems.
- Developing or modifying process equipment for challenging operating conditions. This may include high temperatures or pressures, corrosive environments, high-viscosity materials and variable process conditions. For example, redesigning furnace components to accommodate thermal expansion, sealing requirements, and mechanical stresses at high temperatures.
- Investigating materials compatibility, degradation, corrosion, fouling, or coating performance. This may involve testing alternative materials, surface treatments, or protective systems.
- Developing processes to reduce waste, emissions, or energy consumption. This may involve changing process conditions, equipment configurations, or material flows. For example, redesigning combustion and heat recovery systems to reduce fuel consumption.
- Developing new separation, purification, or impurity-control processes. This may include reducing unwanted by-products or improving the removal of contaminants from products or process streams.
- Investigating alternative raw materials, feedstocks, or recycled materials. This may involve adapting formulations or processes where different material properties create unresolved technical challenges.
- Developing new or improved chemical products, formulations, and reaction processes. This may include improving stability, purity, or performance, increasing reaction efficiency, yield, or selectivity, or developing and testing new catalysts.
Conclusion
Not all activities may qualify. SR&ED begins when conventional methods fail and present technological uncertainty.
But, don’t overlook potential SR&ED in your projects either. If you are overcoming technological challenges during research and development, it is worth an evaluation for SR&ED eligibility. Failed runs count. They show the problem was real and the answer wasn’t obvious. Keep your lab notebooks, batch records, successful test and including the ones that didn’t work.
Did a product lose stability, a process refuses to scale, or a test fail in real samples in your last fiscal year? That is where SR&ED begins.
If this sounds like your experience, it’s worth a conversation before your Filing Deadline.
Not sure where to start? We can help you identify and track eligible activities, optimize your SR&ED claim, and explore additional funding for costs not covered by SR&ED tax credits.
Our team brings decades of combined experience in successfully preparing and filing SR&ED claims for clients year after year.
For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.