ABOUT THE PROGRAM
To maintain their competitive edge, many Canadian companies have come to recognize the importance of research and development, and invest significant amounts of time and money in it. If YOU belong to one of these dynamic companies, you should know that the Federal government has set up a scientific research and experimental development (SR&ED) tax credit incentive program.
This incentive program seeks to encourage Canadian businesses of all sizes and from all sectors to pursue research and development in order to develop or improve products or processes. |
The SR&ED tax credit program is the Federal government's main way of financially supporting industrial research and development, with approximately two billion dollars paid out each year.
The Canada Revenue Agency (CRA) is responsible for administering the SR&ED tax credit program and determining the scientific eligibility of submitted projects as well as the eligibility of expenses (at the Federal level only). Department of Finance Canada is responsible for the underlying legislation.
Most provinces offer an incentive program to encourage businesses to invest in R&D. Provinces are also responsible for determining the credit rates they grant and the type of R&D expenses that are eligible.
Note: The information provided in this section (SR&ED Program) is mainly drawn from the CRA website and is for reference purposes only. |