Canada Scientific Research & Experimental Development (SR&ED) Tax Credit | USA Research & Experimentation (R&E) Tax Credit |
|---|
| Available to individuals and corporations with R&D expenditures in Canada | Available to corporations with R&E expenditures in USA |
| Different funding rates available for types of corporations and size | Standard federal funding rates for corporations |
| Both a federal and provincial tax credit available | Both a federal and state tax credit available |
| Annual tax incentives of $3 billion in Canada, that significantly recoup the costs of R&D | Annual tax incentives of $6.6 billion in USA, that significantly offset the costs of R&D |
| Qualifying expenditures include: labour, materials, and contracts | Qualifying expenditures include: wages, supplies, computer operating costs and contract expenditures |
| Can be claimed up to 18 months of the tax year when SR&ED occurred | Tax credit can be retroactively claimed up to 36 months of the tax year when R&E occurred |
| Additional tax incentives if R&E work in the industry of energy development & drug development |
