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SR&ED

Tax Credits

Construction Firm

November 2014

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What Are

SR&ED Tax Credits?

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SR&ED

Scientific Research and Experimental Development

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Other Provincial incentives

= Ontario Innovation Tax Credit (10%)

= Ontario Research & Dev. Tax Credit (4.5%)

A Revenue Canada Program that provides a

Federal tax credit of 15% to 35%

for eligible expenditures.

Scientific Research and

Experimental Development

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Eligible Expenditures Include:

Salaries/Wages + Overhead

Materials Consumed

(not transformed)

Contract Costs

(i.e. Technical consulting & Third Party)

Equipment Leases

Scientific Research and

Experimental Development

The SR&ED program seeks to:

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Encourage the development of new, or improved,

technologically advanced products and processes

Foster the competitiveness of Canadian products in the

International marketplace

Stimulate domestic economic growth, ensure sustainable

businesses and promote job creation

Scientific Research and

Experimental Development

What

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Qualifies?

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SR&ED

What Qualifies?

We need to show that there is being sought:

Technological Advancement

New Technological Know-How

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SR&ED

What Qualifies?

We need to show that there is being sought:

A measure of the design capabilities you have, and how you

are “pushing the envelope”.

Note: It is not enough to suggest that you are working on a project

that you have no previous experience with.

We need to understand what aspects of the projects represent

a technological advancement?

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SR&ED

What Qualifies?

We need to show that this advancement had some

Technological Challenges

That may have caused it to fail or underperform

This requirement might help separate just another complex

project from one that had some major technological issues