During tough economic times, companies need to take advantage of internal sources of financing in order to survive. One source of financing, which few companies are aware of, are the tax credits you can receive from the federal government for R&D work conducted in the past 2 fiscal years. The Scientific Research and Experimental Development (SRED) tax credit can generate a return of up to 35 percent of your expenditure base.
The CRA has recently developed a SR&ED Small Business action plan which contains four distinct objectives:
- Ensuring public awareness of the SR&ED program and services
- Making our SR&ED publications easier to understand
- Improving accessibility to the SR&ED pages on the CRA Web site
- Introducing a simplified SR&ED claim form and an eligibility self-assessment tool
In fall of 2008, the following will be released:
- Distribution of a 1-page outline of the SR&ED program
- A SR&ED CD-ROM will be released.
- A new brochure will be released.
- A simplified T4088 Guide to the T661 will be released.
- A clear format for submitting technical narratives will be incorporated into the new simplified SR&ED claim form.
Please go to the CRA‘s website for further detail about these proposed changes to the SR&ED program.
