The government is funding your development. Are you claiming the refund?
R&D and innovation are key to growth, both for Canada’s economy and for our individual businesses. Investing in development carries risk in that the costs are immediate, yet the potential returns are delayed. The dilemma is that when growth is most sorely needed, funding for development can be difficult to find. Fortunately, even during the lean times, Canada is funding your growth. Unfortunately, many do not take advantage.
Development and innovation are organic processes. You can’t fund successful innovation alone. Each success is built upon the shoulders of countless failed experiments. SR&ED, Canada’s $4 Billion per year incentive program, is targeted at companies that perform either Scientific Research or Experimental Development, regardless of success.
More information can be found in our SR&ED section.
Practically every company that has staff working on development or manufacturing performs work that is eligible. Many technology companies receive a cash refund every year from CRA equal to 30-50% of their entire development budget. However, many companies don’t know about the program or underestimate their eligibility and choose not to file.
SR&ED doesn’t fund only successful or revolutionary innovation. In fact, innovation or novelty aren’t even required. The program was founded in the 1980s as a way to provide incentive for doing development work in Canada. There is no application or approval process; the eligible costs are claimed on your corporate T2.
If you perform the work, you can bank on the refund every year. Very likely your company has already been earning this incentive. Have you claimed it? It’s easy to start, and you can retroactively claim for last year as well.
Contact us now if you have questions or would like to access the refund that you’ve already earned.
