The Scientific Research & Experimental Development (SR&ED) tax credit program, administered by the Canada Revenue Agency, allows companies that engage in processes that result in new or improved product development to secure government funding to support their innovative work. The program provides tax credits on eligible labour, overhead, material, and subcontracting costs dependent on the structure of the company. Through the SR&ED program, foreign owned or public corporations may receive 15% of eligible expenditures as tax credits, while Canadian controlled private corporations may receive 35% of eligible expenditures claimed as tax credits.
SR&ED projects can often lead to innovations that necessitate the creation of new product lines, or the expansion of production capabilities. In these instances, and for companies generally looking to increase their workforce, there are government funding programs that can help your company hire new workers, specifically youth, to increase your employee base. One such example is the Career Focus program. The Career Focus program was launched to assist youth between the ages of 15 and 30 gain employment experience related to their field of study or career objectives. The program dictates that proposed projects must involve a minimum of 8 youth participants.
Through the Career Focus program, you can increase your workforce through the hiring new youth employees. By combining SR&ED funding and hiring grant opportunities, your company may be optimize your return from government funding programs, in that when those new youth employees are engaged in eligible R&D projects, your company can claim for other expenditures not covered by Career Focus through the SR&ED program. This means your company can free up capital to invest more internal funds towards your business goals.
As your SR&ED and government funding partners, we here at NorthBridge Consultants are experts in how multiple government funding programs can be used to maximize your return and ensure you have the right employees for your business needs. If you would like additional information on, SR&ED, or other government funding programs, do not hesitate to contact one of our Client Managers at info@northbridgeconsultants.com for your free consultation.