What is the general process for my Company to apply for a SR & ED tax credit?
There are essentially two components to making an SR & ED tax credit claim: The first is to identify an SR & ED project and write a project description. Within this project description, you must identify the technological advances, uncertainties, and content. These three criteria must be discussed in the context of technology and not product development or business and marketing applications. The second component is to identify the eligible expenditures that qualify as SR & ED, and give rise to the SR & ED tax credit. Once the above is completed, federal forms T161 and schedule 31 must be completed and filed on time. Appropriate Provincial SR & ED forms may have to be completed as well.
