SR&ED for Start-ups
SR&ED (Scientific Research & Experimental Development) is a government program that rewards companies that perform R&D in Canada. The program makes Canada a more economically competitive and technologically advanced nation and it has been in existence since the 80’s. The Canadian incentive program is one of the most generous R&D programs in the world.
The SR&ED program is not a grant, but strangely enough, does actually behave like a grant. Traditional grants are pre-approved before work commences. SR&ED grants are retroactive and approved after the fiscal year-end of the corporation.
Many startups in the technology and science sectors qualify for the SR&ED Tax Credit Program
SR&ED Claim for Start-Ups
If you answer yes to any of the following questions you could be sitting on an untapped refund.
- Are you incorporated in Canada with a Business Number (BN)?
- Do you operate in a sector of science, technology, or medicine?
- Have you or will you incur labour, subcontractor, material, or overhead expenditures?
- Have you developed any prototypes?
- Are you facing technological or scientific uncertainty with products, devices, or technologies?
- Are you attempting to achieve an advancement in knowledge in a field of technology, science, or medicine?
SR&ED Eligibility for Start-Ups
There are only 3 criteria for eligibility plus evidence.
- Scientific uncertainty
- Scientific advancement
- Systematic investigation
- Scientific content and evidence