Subsidies and tax credits
Complementary service
Subsidies and tax credits
Complementary service
Did you know that if you invest in research and development (R&D) in Canada, you could be eligible for tax incentives through the Scientific Research and Experimental Development (SR&ED) tax incentive program?
SR&ED is Canada’s largest R&D program, and it provides income tax deductions and investment tax credits to eligible applicants. In this blog post, we’ll break down the basics of SR&ED and how your business can benefit from taking advantage of this program.
Did you know that as a business, you are entitled to several grants and tax credits to help you carry out your projects? requests, as well as meeting several criteria which can turn out to be very complicated.
You have your specific area of expertise; we have ours.
Let us help you demystify applying for grants and tax credits, and thus, you avoid many hours of work.
SR&ED is a federal tax incentive program that encourages businesses of all sizes to invest in R&D. The program provides two main types of tax incentives: income tax deductions and investment tax credits. Income tax deductions can be used to reduce a business’s taxable income, while investment tax credits can be applied against income taxes payable in the current year, in a prior year, or carried forward to a future year. In some cases, the credit may be refundable.
There are three main types of entities that are eligible for SR&ED tax incentives: Canadian-controlled private corporations (CCPCs), other private corporations, and individuals/trusts. Members of partnerships may also be eligible for SR&ED benefits if the partnership itself meets the eligibility criteria. To learn more about whether your business is eligible for SR&ED tax incentives, check out this handy eligibility guide.
The annual impact of SR&ED is significant: the program provides approximately $3 billion in tax incentives to over 20,000 applicants every year. The amount of money your business could receive through SR&ED depends on a number of factors, including the type and size of your business, the scope of your R&D activities, and whether you are claiming an income tax deduction or an investment tax credit. For more information on how much your business could receive through SR&ED, contact a qualified professional at Avinova.
If you’re thinking about investing in R&D for your business, there’s no reason not to take advantage of the SR&ED program. The annual impact of SR&ED is significant, and your business could receive substantial financial benefits by participating in the program. To learn more about whether your business is eligible for SR&ED benefits, contact a qualified professional at Avinova
