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Research & Development Tax Credit Claim Preparation
General Program Information
The Scientific Research and Experimental Development (SR&ED) tax incentive program is the largest single source of federal government support designed to encourage research and development (R&D) in Canada.
Each year, the SR&ED program provides over $4 billion in investment tax credits (ITCs) to over 18,000 claimants. Of these, about 75% are small businesses.
Who can claim SR&ED tax credits?
The SR&ED program is available to any business operating and carrying out R&D in Canada. Certainexpenditures for SR&ED performed outside Canada are also permitted.
Any business that is involved in basic or applied research, or in advancing technology in order to improve or develop new materials, devices, products or processes may be eligible under the SR&ED program.
The vast majority of businesses that are eligible under the SR&ED program fall into two groups:
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Canadian-controlled private corporations, which can qualify for an enhanced rate and often fully-refundable federal SR&ED credits; and
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Other corporations (i.e. foreign-controlled or publicly-traded), which get the standard rate of non-refundable federal SR&ED credits.
We make claims for companies across a range of sectors including:
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Manufacturing - machine modifications, process improvement, unique products.
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IT Technology - software development, system integration, database development
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Food and Beverage - ingredient modification, improved recipes, low carb/fat
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Electronics - hardware developments, modification and customization
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Metal Fabrication - new materials, heat treatments, unique solutions
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Plastics Industry - resin types, quality and production time, polymers, unique solutions
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Chemical - chemical design and synthesis, formulation, processes, experimentation
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Environmental Technologies - technological experimentation, product development
Our services include the following:
- Initial consult meeting to access eligibility (no cost).
- Meet your key technical team members.
- Uncover and review all eligible projects.
- Assemble all necessary technical information to prepare technical report.
- Gather all eligible financial expenditures to optimize your claim.
- Prepare all required forms.
- Monitor your claim once filed.
- Provide support to your technical and financial team during government reviews.
- Consult, advise and make recommendations associated with future claims.
All services are provided without risking your cash; our fees are a contingent percentage of tax credits granted.
Our personalized and highly professional team will help you in understanding the program and its subtleties, taking care of your claim, allowing you to focus on your business.
Some Common Misconceptions that may be preventing you from claiming...
High Tech sector only? NO - SR&ED is not performed in laboratories only. It can happen in an office behind a computer or on the shop floor. When modifying a product to make it more durable or precise or when altering an internal process to make it more profitable or efficient. The work may actually be experimental development and might qualify for an SR&ED tax credit.
Research ownership - Some taxpayers assume that since someone paid them to develop a custom product or process, their customer owns the technology and they cannot claim SR&ED tax credits on the work that they performed to develop the underlying technology. This is not necessarily true.
Eligibility - Some companies believe they are not eligible for a refund because they are in a loss position and don't pay income taxes. The program provides cash refunds to some companies that are in a loss position.
Difficult and Time Consuming - the main culprit might still be the complex nature of the claim process. Filing for an SR&ED tax credit requires a great deal of time, resources, expertise and commitment. That's why Stonecracker exists, to do this work so that you do can focus on what you do best: developing your technology.
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