Manufacturing Success with the SR&ED Incentive Program
The Canadian government is providing significant funding to manufacturers through the SR&ED Program. As Canada’s largest Business Incentive program, it distributes over $4 Billion per year in tax credits and cash refunds to companies performing work in Canada. Manufacturers who do any work to improve their product design, workflow, infrastructure, environmental impact, or IT systems receive significant SR&ED funding each year. Are you claiming your refund?
Manufacturing Success with the SR&ED Incentive Program
The philosophy is simple. Canada is providing a no-strings incentive for Canadian and foreign businesses to perform their work in Canada. Since the ’80s, the SR&ED program has provided tens of billions of dollars in incentives to encourage growth in all sectors of Canadian business. There is no application process and the funding does not run out. The credits are claimed on your corporate T2 filing. If you perform eligible work, you are guaranteed the refund by law.
The criteria for funding is quite specific, but applies very broadly to businesses doing nearly any manufacturing or development. Essentially, any work that requires experimentation in order to improve or extend a product, process, methodology, or system is eligible for significant refund. Laboratory experimental procedures are not required. The work you are already doing will likely meet the criteria. What many companies think of as ‘routine development’ or ‘trial and error’ is actually SR&ED eligible. Visit out our Determining Eligibility page for more information.
Laboratory experimental procedures are not required… What many companies think of as ‘routine development’ or ‘trial and error’ is actually SR&ED eligible.
A great many manufacturers take advantage of the SR&ED program and receive annual refund cheques amounting to 30-50% of their R&D budget. Unfortunately, many companies are waylaid by common SR&ED Myths which cause them to significantly underestimate their eligibility and the amount of refund money they have already earned. Don’t allow misinformation to prevent you from accessing your refund.
The size of your refund will be dependent on the amount of costs you incur in order to do your SR&ED work. Our SR&ED experts can give you a detailed assessment of your eligibility. If you would like a quick estimate, check out our SR&ED Refund Estimator which can give you a rough idea of the size of the refund cheque you should expect each year. Don’t forget that you can retroactively file for last year. There is a deadline for this, so it’s best not to delay.
To those new to the program, SR&ED can seem daunting. Navigating the SR&ED maze alone can take a significant time commitment just to figure out how it can benefit your company, let alone the time required to learn how to claim SR&ED. Adding to the problem is that the eligibility of work done is often underestimated by a very large factor. These combine to have a double-effect on the cost/benefit of the SR&ED program. Frequently those filing for themselves will spend far too much time and claim for far less than they are eligible.
With The Resonant Advantage, our SR&ED experts do all the work to maximize your claim, while you stay focused on growing your business. Your time commitment will be reduced to a handful of hours, and you risk nothing with our contingency-based fee. This makes filing for SR&ED a highly profitable new annual revenue stream.
Contact us if you have any questions about the program, or if you would like to have a quick chat with one of our SR&ED experts about how the program can benefit your company.
