Have you heard of the SR&ED program before, but like most people aren’t sure what it means? SR&ED stands for ‘Scientific Research & Experimental Development’ and it is a tax credit designed to help Canadian businesses of all sizes in all industries. The tax credit program helps businesses involved in research and development create new knowledge, when they have problems to solve but no answers are available yet.
The SR&ED credit was created by the Canadian government to ensure the growth and competitiveness of Canadian businesses. Thousands of businesses qualify for the program every year, does yours?
Many companies mistakenly believe that they don’t qualify for the SR&ED claim, so it’s important to take a closer look and find out for sure. Here are some of the criteria for companies to qualify for the program. If your business fits in any of these categories, you should consider looking into it.
- You’ve changed product or process when technological challenges were present.
- You’ve created and developed new products or features that work with an existing product.
- You’ve designed and then tested new products and prototypes and processes.
- You’ve developed computer software and programs that meet specific needs in the industry.
- You’ve made changes to your own equipment and processes that increase productivity.
- You’ve employed technical staff that are highly trained and work to find solutions to technological problems.
- You’ve developed new applications for existing technology.
As with any type of tax credit or grant, there are always misconceptions about the program and what has to happen for your business to qualify. Here is some important information you should know so you aren’t derailed before you even get going.
- You don’t necessarily need to find the solutions you’re seeking in order to qualify. The success of your initiative isn’t a prerequisite to qualify.
- You don’t need to be the first company that approaches or even solves the problem at hand. As long as a competitor’s research and solution aren’t available in the public domain, you could qualify.
- Not every company that does R&D automatically qualifies for SR&ED claim. Using well-known scientific methods and processes to solve technological problems isn’t what the government is looking for to issue the tax credit.
The best way to know if you qualify is to contact a company that helps to process the SR&ED program and find out. It doesn’t cost anything to ask, but your business may benefit a lot as a result.
As a business owner, David Ma uses his freelance writing to help make other Canadian business owners more aware of the SR&ED program to get their deserved tax credits. When David needs a consultant to discuss the SR&ED program, he trusts the trained professionals at SR&ED One Inc. Visit their website to learn more http://www.sredone.ca/.