SR&ED Program Details
How do Income Tax Credits (ITCs) Benefit Your Company?
- a source of cash for R&D
- added shareholder value
- tax credits are valuable assets that can be carried back 3 years and forward 20
- improve product marketing
- a SR&ED expenditure pool can be carried forward indefinitely to be used when taxable income has increased
What Expenses Qualify?
- labour
- materials
- contract payments
- overhead costs (can be estimated)
- third party payments (e.g. association or university general research contributions)
- some lease costs for R&D equipment
- some capital expenditures
How Will You be Paid?
CCPCs (Canadian-Controlled Private Corporations):
- 100% of ITC earned on current expenditures is awarded as a cash refund
- 40% of ITC earned on capital expenditures is awarded as a cash refund
Individuals and Partnerships:
- 40% of ITC earned is awarded as a cash refund
- 60% of ITC earned is credited towards taxes payable
Public Corporations:
- 100% of ITC earned is credited towards taxes payable
SR&ED Program
Corporate Planning:
Financial Planning: