RnD Tax Credit for Canadian Companies

Scientific Research and Experimental Development Tax Incentive

New to SRED?

• SRED = Scientific Research and Experimental Development
• A federal tax credit program designed to encourage Canadian businesses to conduct research and development to advance technology.

What does that mean?

It means that when we encounter difficulties or challenges with creating service offerings, creating business processes, working through projects/implementations/support and we attempt to solve those issues,  as long as we document what we attempted to do, how we did it and what the outcome was we can submit a claim to receive the tax credit.  So when we do encounter some kind of issue it is really important to capture “the journey” of what we did to resolve it, regardless of the outcome being positive or negative.

It’s best to get a specialised consultant in to help you with this, it does take alot of work to get the grant, and the consultant will charge commission for this. Remember  SR&ED “grant” comes in the form of a tax credit not actual dollars.