R&D Tax Credit
R&D Tax Credit Video (requires Flash 7)
Are You Eligible for the R&D Tax Credit?
Is your business involved in any kind of manufacturing? Are you making product, process or energy improvements? If so, you may be surprised to find out that your business could be eligible to claim thousands of dollars through a federal grants program called Scientific Research and Experimental Development (SR&ED).
What is the SR&ED program all about? The federal government understands that the growth of our country is based on a foundation of continuing development. As today's manufacturers are the engine behind this development, their continuous contributions strengthen the economy at large. It is this realization of the importance of manufacturing innovation that is recognized and supported financially through this government program.
We have virtually a 100% acceptance rate for SR&ED claims
At Clancy & Company, we strive to make a difference in your business through our chartered accounting services. Part of that process is being able to assist our clients in benefiting from opportunities they may not even realize exist, such as the SR&ED program.
We believe that virtually every manufacturer has something to gain from this opportunity. We take incredible satisfaction in knowing we help a client be more successful. By building on our over 15 years experience, we have achieved virtually a 100% acceptance rate.
Further, by utilizing our services, we can work on a contingency basis so there will be no risk on your part. If you do not receive the investment tax credits, there is no cost to you!
Benefits of the SR & ED tax incentive program
Subject to some restrictions, a successful SR & ED claim will result in:
- Federal tax credit of 35%
- Provincial credit of 10%
Coupled with the enhanced tax treatment of labour costs, the combined federal and provincial credit can be as high as 68%. These credits will either be refunded directly to you, or, applied against taxes otherwise owed.
Therefore, if you are an Ontario corporation, spending $50,000 on labour on a project that qualifies for the tax incentive, it is possible that you will receive a payback up to $34,000!
What Kind of Projects Qualify?
Many businesses believe they have to be developing some major innovation to qualify. In fact, there is a wide range of projects that qualify for SR&ED tax credits, including:
- experimental development to achieve technological advancement to create new materials, devices, products, or processes, or improve existing ones;
- applied research to advance scientific knowledge with a specific practical application in view;
- basic research to advance scientific knowledge without a specific practical application in view; and
- support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research, but only if the work is commensurate with, and directly supports, the eligible experimental development, or applied or basic research.
What Must Your Company Do?
To qualify for investment tax credits, work must:
- advance the understanding of scientific relations or technologies,
- address scientific or technological uncertainty, and
- incorporate a systematic investigation by qualified personnel.
Clancy & Company can maximize your opportunity
Clancy & Company will act as the catalyst and co-ordinator in the claim process, ensuring that you maximize the benefits available to you by doing the following:
- identify eligible scientific research and experimental development projects. As part of the identification process, we help assess whether the three important criteria of the program are met (advancement, uncertainty, and technical content)
- assist in the project planning process
- document eligible project activities and relevant financial data in preparation for a formal submission to the Canada Revenue Agency
- determine an appropriate application strategy to ensure that all of the program requirements and fundamentals (technical and financial) have been considered and are coordinated in a manner that ensures acceptance (or reduces the risk of rejection)
- coordinate preparation of financial statements and income tax returns (or amendments thereof)
- interact with the Canada Revenue Agency regarding any technical or financial audit questions or issues.
Contact us today to see if you qualify
For further information, contact Tony Ditchburn at Clancy & Company.