The Canadian Scientific Research and Experimental Development Tax Incentive Program (SRED or SR&ED) provides support in the form of tax credits and/or refunds, to corporations, partnerships or individuals who conduct scientific research or experimental development in Canada.
Does your company qualify?
- Have you developed a new product or improved on an existing product?
- Have you developed or improved on a process?
- Have you developed software?
- Has your company raised the bar on technology or knowledge?
3 criteria have to be met
- You must demonstrate that your company has advanced technology or advanced knowledge that raises the bar in terms of what is standard practice in the industry or your company. Do you always know in advance the outcome of your attempts to improve a product or process?
- You must demonstrate that in attempting to advance technology, you encountered and overcame technological challenges or obstacles by means other than standard practice or routine engineering.
- You must demonstrate that your company overcame these challenges using an experimental approach conducted by knowledgeable and experienced personnel.
The diagram below illustrates the inter-workings of the 3 criteria.