The government of Canada has introduced significant updates to the Scientific Research and Experimental Development (SR&ED) tax incentive program in its latest Federal Budget on December 13, 2024. These changes are designed to better support businesses conducting research and development, encouraging innovation and economic growth. Here’s what you need to know about the updates. 

As the year winds down, businesses across Canada are gearing up for tax season. For those in innovation and research, securing R&D tax credits is a critical part of the process. Yet, these valuable opportunities are often overlooked. Starting your Research & Development (R&D) tax credit preparation early offers significant advantages for startups and established companies alike. Early action not only simplifies the process but also ensures you maximize your claim. Here’s why getting a head start can be a game-changer for your business.

As the U.S. undergoes post-election shifts, Canadian businesses with cross-border interests are closely watching how changes in American policies on R&D tax credits and grants might affect their operations.

Securing and maintaining NRC IRAP (National Research Council Industrial Research Assistance Program) funding can be daunting for Canadian businesses, particularly small and medium-sized enterprises (SMEs).

The government of Canada announced their annual statistics on the SR&ED tax incentives program. The SR&ED tax incentive claim has grown from $3.4 Billion to $4.4 Billion in the last three years, funding innovation in the following industries.

Canadian companies have a significant opportunity to profit from bilateral cooperation with the EU in science and technology, by fostering cross-border partnerships.

The various government entities across Canada offer more than a thousand different grants and subsidies for businesses operating across the country. They offer substantial financial benefits, but often the ecosystem is opaque and challenging to navigate.

2023 Federal Budget highlighted the transformational new big five clean investment tax credits, which will help produce, manufacture, or transition to clean energy in Canada. These Clean Investment Tax Credits, which total over $60 billion over the coming ten years, will support green innovation in the private sector, grow our economy, and create or secure thousands of good middle-class jobs.

Canada is home to many digital innovation giants and fast growing SMBs and start-ups. Canada’s federal and provincial governments offer some of the most generous incentives in the world to support this rapid growth and encourage investments in the country. The refundable tax credit for interactive digital media is available in various provinces across Canada. In each province, the rates and conditions for claiming the credit differ from one province to another, particularly concerning the wage expense per individual and the total eligible expenses that are not capped.

If you are reading this, a well-trained SR&ED consulting firm can tell right from the title that a business project does not qualify for the SR&ED Tax Credit. Many companies ask what the difference is or if there is any difference between a business project and an SR&ED project. The easy answer is yes there is a definite difference, but let’s dig into this further.

I think the place to start is to be clear about what the SR&ED tax credit is supposed to encourage.

We are proud to announce that Braithwaite, a leading player in the Canadian innovation financing industry, is joining ABGi (a member of the Visiativ group)! Braithwaite’s R&D, tax and financial experts will bring over 30 years of SR&ED expertise and a 99% success rate with the CRA, and strengthen ABGi Canada’s coverage in Ontario, Alberta, British Columbia…

The Scientific Research and Experimental Development (SR&ED) Tax Incentives are complex and require in-depth knowledge of the SR&ED tax system. To meet Canadian Revenue Agencies (CRA) guidelines, a company must understand all forms needed for submission, SR&ED eligibility (the proper documentation), how to submit correctly, etc. This can be cumbersome for many companies, as finding the quick and easiest way to file is always top of mind.