The Scientific Research and Experimental Development (SR&ED) tax credit is designed to help decrease the operating expenses of the companies that are contributing to the overall scientific and technological advancement of the country with their processes, research and developments. Companies are not required to be directly in science or technology industries. They could be farmers, or in the fields of construction, software, computer, medical, metallurgical and many other type of industries. The main goal is to be in the process of development or research that contributes to the advancement of the knowledge database.
The credit covers as much as 64% of eligible salaries and up to 42% in materials.
The application process for this tax credit is very complicated and must be technically correct. It has to meet a variety of guidelines set by CRA. Historically, mostly large companies were able to afford the application process. The price charged for the tax credit application by professionals was based on success-based contingency fees. The high risk of applications being rejected increases the fee and is not necessarily beneficial for innovation and research companies. This situation pushes a significant number of potential applicants away.
We offer our services to renewable energy companies at a set price. We share in the risk of the application and encourage savings generated by the tax credit for our clients. Our goal is to increase the volume of small and medium applicants by increasing the affordability and efficiency of the application process.