What exactly is the SR & ED Program?
The SR&ED program is a tax incentive program to encourage SR & ED in Canada. The Program is administered by the Canada Customs and Revenue Agency (“CCRA”), and is claimed through income tax returns. While the SR&ED Program is available to corporations, individuals, or partnerships, most of the claims are made by corporations through the corporate income tax return. SR & ED stands for “Scientific Research and Experimental Development.” Most claims are made on the basis of experimental development. In this regard, many businesses in manufacturing, information technology, software development, engineering, and food science make SR&ED claims in the area of experimental development. In fact, any time a Company in the above industries, is creating or improving upon a new product or process, there is generally a high degree of probability that they will be eligible for SR & ED tax credits. In many cases, the tax credits result in a cash refund to the Company. Otherwise, at the very least, com
