The Scientiﬁc Research & Experimental Development (SR&ED) tax incentive program began in 1944 with the aim of stimulating the Canadian economy by incentivizing research and development within the country. The Canadian government refunds over $3 billion dollars to approximately 20,000 companies every year through the SR&ED Program. Rules governing the program are contained in the Canadian Income Tax Act.
The SR&ED program rewards companies acquiring knowledge about science or technology. Companies who conduct tests or experiments have great potential to beneﬁt from the program and may claim SR&ED every year.
The acquisition of knowledge doesn’t need to be infinitely large, in fact the term former Chief Justice of Canada Donald Bowman used was “infinitesimal”. What this means is that even if your company is acquiring small amounts of knowledge or understanding of their processes, systems or technologies it can still be claimed as long as it’s not generally accessible to another competent individual in their field.
Let’s give you a few examples of the companies we’re working with who are claiming SR&ED.
- A welding shop that is experimenting with different methods of welding metals together in order to maintain a seamless “look”.
- An engineering firm that is experimenting with different types of bits, speeds, and power outputs to determine the best combination when drilling in unknown terrain.
- A software company that is building a unique app integration between different API’s.
As you can see there is quite a wide range of different industries that are able to claim SR&ED. The ability to receive federal grants can be quite powerful for companies that are spending capital to increase their knowledge.
Quantum Group and its partners have developed a thorough and comprehensive method of claiming these eligible grants for companies. You may be leaving money on the table when claiming personally or through other companies with less experience in this sector.
At Quantum Group, our approach is unique. We understand that most learning occurs randomly and unpredictably. This gain in knowledge is often not associated with just one particular business project and may be scattered over many, even hundreds, of business projects. This is signiﬁcant because ostensibly unrelated incidents of learning can oftentimes amount to more dollars than your business projects. Thus, you may be leaving behind up to 50% of your claim, or even more. That is where the Quantum Group picks up the smaller claim opportunities that most other companies miss.
If you are already claiming SRED we may be able to claim more work than you already are.