Business – Financing – Tax Credits

 

Federal Government

The Scientific Research and Experimental Development (SR&ED) Tax Credit is a federal tax incentive program to encourage Canadian businesses of all sizes to conduct research and development that will lead to new, improved, or technologically advanced products or processes. Claimants can apply for tax credits for expenditures such as wages, materials, machinery, equipment, some overhead and SR&ED contracts.  Advance-Tek Consulting Inc. is a local company that assists businesses with applying for SR&ED credits.
The National Research Council Industrial Research Assistance Program (NRC-IRAP) provides technical and business advisory services, coupled with funding opportunities for Canadian small and medium enterprises (SMEs). The program also offers networking opportunities as well as partnerships and collaboration. The NRC-IRAP offers financial assistance for research and development activities by:
  • Providing funding contributions to Canadian SMEs interested in using technology to commercialize services, products and processes for Canadian and international markets
  • Investing, on a cost-shared basis, in research and in pre-competitive development technical projects.
  • Providing financial support indirectly through contributions to regional and national partner organizations that supply technical and research assistance to Canadian SMEs.
  • Offering internship funding that enable SMEs to hire recent post secondary graduates with the specific skills and expertise needed to advance innovative projects.
Provincial Government
The Manufacturing and Processing Investment Tax Credit (ITC) is available to manufacturing and processing corporations. It is a refundable tax credit, designed to encourage plant and equipment investment. This income tax credit applies as 5% of total capital cost of eligible new and used manufacturing and processing building, machinery and equipment purchases, including installation costs.
Complementing the SR&ED tax credit is the Saskatchewan Research and Development Tax Credit. This tax credit is equal to 15% of the qualifying research and development expenditures incurred in Saskatchewan. Operations research, engineering, design, and computer programming are eligible if these activities support the research or experimental design. The credit reduces corporate income taxes, and unused amounts may be carried forward ten taxation years, or carried back three taxation years.