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What Type of Work Qualifies for Research and Development Tax Credits?

Is your company completing work that achieves technological advancement?  Read on to find out sred tax refund consultantshow broadly this is defined when it comes to qualifying for R&D tax credits such as SR&ED.

To qualify as SR&ED, your work must meet the definition of one of the following:

  • basic research,
  • applied research
  • experimental development

Three Categories of R&D

Basic research is work carried out purely for the purpose of advancing scientific knowledge. It’s usually done in universities or research institutes.

Applied research is work carried out to advance scientific knowledge but, unlike basic research, it’s done with a specific practical application in view.

Experimental development is work carried out to achieve technological advancement. It’s by far the most common type of SR&ED work.  This type of work occurs in a wide variety of industries and often during the course of regular business.  It’s a huge opportunity for businesses to be aware of.  Since it is already happening, not tracking and claiming it is a loss to the organization’s bottom line.

Definition of technological advancement

Technological advancement means that you are generating information or knowledge to advance your technology base. This, in turn, will help you to develop new products or processes or improve existing ones.

It is necessary to highlight, however, that new or improved products do not always mean that a technological advancement was achieved.

A simple litmus test for the achievement of technological advancement is to answer the following question: what technological uncertainties did you encounter when you tried to develop the product or process?

So here is the definition which leads to nearly $3 billion dollars in SR&ED funding each year in its simplest form:  technological uncertainties are barriers that prevent you from achieving your goals. The knowledge that you gain in overcoming those barriers is the technological advancement.

How SR&ED work is done

No matter what type of SR&ED work you do, you have to follow certain basic procedures. Your work must be a systematic investigation or search by means of experiment or analysis.

This means that each approach you take to resolve your uncertainty should be a planned experiment based on an idea or a concept.  You start with a problem that you can’t solve with the existing technology base or knowledge. Then you suggest new ideas for how to solve the problem and you test them. This will eventually lead you to increase your technology base or knowledge.

Basically, it must be a systematic investigation or search, by experiment or analysis, to advance science or technology.  If so, you’ve answered the “how” component of SR&ED work.

Getting Started

The process of knowing what qualifies as SR&ED, tracking and documenting it and submitting a claim can be overwhelming.  Enhanced Capital Recovery is focused on completing this task for your organization, so you can focus on your core business.  We take the risk out of using our services by making our fees 100% contingency based.  Contact us today for a free consultation!

Simple Guide to SR&ED Tax Credits in 2016

Claiming your R&D tax credits for your corporation or business can seem complex and guide to claiming benefits for sredoverwhelming.  In fact, it does take specialized knowledge and insight to maximize your return and to complete it in a way that meets the CRA’s requirements.

Enhanced Capital Recovery is here to take care of your R&D claim, ensuring that nothing is missed and that all the “I”s are dotted and “T”s are crossed on your claim.  Even if you prefer to claim on your own, consider ECR to help review your current claim or even past claims.  We offer free, no risk consultation – just fill out the contact form at the end of this post if you’d like to take advantage of the opportunity.

The following is the process for completing the claim, with a few tips to overcome some of the challenges in the process.

Forms Required

Whether you’re a corporation, or an individual who carries on a business, you have to complete and file Form T661 if you want to claim SR&ED expenditures.  This form is used to provide technical information about your SR&ED projects, calculate your SR&ED expenditures, and calculate the SR&ED expenditures that qualify for an investment tax credit.

To claim your investment tax credit, you also have to file either Form T2038, Investment Tax Credit for Individuals, or Schedule T2SCH31, Investment Tax Credit for Corporations, along with form T661.


  • Document R&D work while it’s in process; for example, keep track of any product trials, experiments to remedy unanticipated results, and documents explaining industry research; meet with key employees often to capture these improvements and make a habit of discussing and documenting your expanding industry knowledge; ECR can help you implement a streamlined tracking system to make end of year filing easier.
  • It’s good practice to file your SR&ED forms at the same time that you file your income tax return.

Completing Your T661 Form

Form T661 has 10 parts that can be grouped into five components:

  1. general information,
  2. project information
  3. financial information
  4. statistical information
  5. certifications

Part 1:  Simply fill out your general information, such as identification and contact information.

Part 2:  Project information. In this section, you need to provide detailed information about the scientific or technological content of your work.  A separate Part 2 must be completed for each project you’re claiming.

Part 3:  Calculate your deductible expenditures for the purpose of calculating your net income.

Part 4 & 5:  Calculate the expenditures that qualify for your investment tax credit.  If you chose the proxy method to calculate your overhead and other expenditures, you’ll calculate your prescribed proxy amount in Part 5 of the form.

Part 6:  Break down the costs for each project you’re claiming in the year.

Part 7:  This section helps the Government develop valuable statistics about the type of R&D work done in Canada.

Part 8, 9 & 10:  The checklist to make sure that your claim is complete before filing it, then provide information about your claim preparer in Part 9, and sign parts 9 and 10 to certify that all your information is true, correct, and complete.

Maximize your R&D incentives

ECR is a top tier R&D consulting firm.  Contact us today for your free consultation!

Software Development R&D Tax Credits | Checklist for Software Developers

As a software developer there are many opportunities to be innovative, even within the scope of software development 22routine business operations and activities.  When a new product or industry breakthrough occurs, it is clear that innovation has occurred.  However, when it comes to R&D tax credits in Canada, such as SR&ED, the definition of innovation is much broader – inclusive of incremental advancements, which can often be overlooked by management.

Through this article we hope to help eligible software development companies realize the opportunity, and to provide a checklist of the type of activities which are eligible for SR&ED, as well as some examples of projects that would qualify.

Maximizing your companies’ SR&ED tax credits is best supported by an expert in the field.  SR&ED consultants help companies maximize their R&D tax credits and ensure that projects are submitted according to the CRA’s guidelines.

Checklist for Software Developers

Software development companies are normally involved in a number of business activities which are eligible for R&D tax incentives such as SR&ED.  If your company has been involved in any of the following activities, a SR&ED claim is likely:

  • Your team advanced technology in operating systems, programming languages, data management, communications software or software development tools
  • Your team conducted research into methods of designing, developing, deploying, or maintaining software
  • Your team produced advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating, or displaying information
  • Your team attempted to fill a technology gap in order to develop or advance a system
  • Your team attempted to improve the performance, speed or functionality of an application
  • Your team encountered unexpected technical uncertainties during development efforts (i.e. hardware/ software issues) that required multiple attempts to solve the functionality issues
  • Your team conducted research and development into software tools or technologies in specialized areas of computing (i.e. image processing, geographic data representation, character recognition, artificial intelligence)

Software Industry SR&ED examples

Software developers often have SR&ED eligible projects on the go on a daily basis when trying to create programs or apps or overcome technical barriers. Software development issues that are common include timing issues (i.e. deadlocks, races), resource management (i.e. memory footprint), exception handling, thread synchronization and responsiveness (i.e. start-up time; responsiveness).

To give you an idea, one concrete example of software development that met the requirements of SR&ED is the following: a cached turn-by-turn GPS navigation was created to solve drivers’ difficulty of navigating roads outside of cell phone service range.

Businesses that produce software for another company’s specific use are also eligible. Perhaps your firm was approached to create software that allows your client to share inventories through their smart phones?  This would be an eligible R&D activity!

How ECR can help

Our experienced SR&ED experts at Enhanced Capital Recover will be able to identify all of your eligible projects and assist you in recovering SR&ED tax credits to which you are entitled.

Even if you currently complete your own R&D tax credits application, our experts will be able to validate and optimize your scientific descriptions as well as your eligible expenses. We will assist you in maximizing your return on investment while minimizing the risk of audit by Revenue Canada.

With our contingency based fees, we completely eliminate the risk of making a claim. We do the work up front and only get paid when your refund is secured.  Contact us today for a free, no obligation consultation.


Does Your Business Qualify for R&D Tax Credits?

As tax season approaches, are you wondering if there are any R&D tax credits your company cnton Vancouver Torontomight qualify for?  Canada’s Scientific Research and Experimental Development (SR&ED) Program is designed to help Canadian Controlled Private Corporations (CCPC) fund and make further investments in technological advancement.

According to published survey results by Canada Revenue Agency, approximately three-quarters of companies that apply to the program report annual revenue of $50 million or less – and there is no specific industry that this funding is limited to.

Who is Eligible for R&D funding?

Almost any Canadian company can be eligible to apply for Scientific Research and Experimental Development (SRED).  Here are the details of the criteria from a company perspective:

  • Your Research & Development took place within Canada
  • You have proof of expenditures related to the claimed projects, for example T4s, and/or invoices
  • You have ownership of the Intellectual Property resulting from the project
  • You are in good standing with government financial reporting
  • Your project expenses were incurred within 18 months of the fiscal year-end as of filing

The definition of technological advancements can be interpreted broadly and therefore is not limited to specific industries.  Generally we work with a wide range of industries including:

  • Software
  • Information Technology, inclusive of hardware, software and electronics
  • Manufacturing
  • Agribusiness
  • Chemicals
  • Food and Beverage
  • Health Care and Medical
  • Machinery & Equipment
  • Plastics and Materials
  • Pharmaceuticals
  • Textiles

What many businesses don’t realize is that some of the routine business challenges they face each year could be eligible for the SR&ED tax credit.  For example:

  • A food-services company improves its recipe for a frozen meat pie;
  • A leather-garment manufacturer tries out a new dye and must test garments under various conditions to ensure that the dye stays in;
  • A pharmaceutical company develops a new lightweight casing for medicinal capsules but discovers over time that it is not leak-proof and so can’t be used (note: unsuccessful R&D projects are still eligible for the SR&ED tax credit)
  • An engineering and manufacturing company develops and modifies plastic molding technology so that it can protect testing components from the hostile oil and gas field environments.

All these activities, and many more business processes like them, result in knowledge improvement for the company and its staff and hence are recognized as SR&ED by the government and are eligible for an SR&ED tax credit. Many Canadian corporations in your industry, including your competitors, have received SR&ED funds to develop additional R&D projects and build their knowledge base. For companies with annual revenue of $10 million or less, the vast majority credited the SR&ED program with improving their cash flow and profits.

Why Choose Enhanced Capital Recovery?

As a top tier SR&ED Consulting firm, Enhanced Capital Recovery’s business is maximizing government incentives in the areas of Scientific Research and Experimental Development (SR&ED) tax credits for our clients. Since we are a highly specialized SR&ED firm, we offer clients depth of experience, important strategic relationships and insights, a systematized approach and an effective tracking and follow up system.

Wondering if your projects are eligible for an SR&ED tax credit?  Please contact us today for a free consultation to see if you are eligible.

Medical Device Manufacturing | SR&ED Examples and Advice

Are you wondering if your medical device manufacturing company would be eligible for R&D tax Laser-cuttingcredits?  Find out and read some SR&ED examples from the medical device manufacturing industry in this article.

Normal operations within the medical device manufacturing industry often involve research or experimentation that could qualify for R&D funding or tax credits such as Scientific Research & Experimental Development (SR&ED).

Research and experimentation in this industry includes the development or improvement of products or manufacturing processes in a variety of forms as well as the development of products with specific and unique features.  Some general examples of industry specific projects potentially eligible for SR&ED are:

  • Attempted to develop new or improved products or manufacturing processes
  • Developed or improved devices to advance safety and efficacy of the device
  • Conducted clinical trials on the device to gain information on how the device interfaces with humans and provide feedback on the safety and efficacy of the device
  • Advanced science or technology in the work that you do
  • Developed prototypes for evaluation and testing internally or by other health professionals including hospitals
  • Developed an R&D department or lab that is involved in new product development
  • Kept records of the systematic R&D work that you do
  • Systematically developed new or improved products using industry feedback involving multiple approaches or prototypes, followed by testing, product design changes, additional prototypes, and subsequent testing over the development period

Medical device SR&ED example

A manufacturing company, who makes complex medical devices, wanted to speed up their line to reduce the per item completion time. They had three research questions which needed exploration.  The first concern was a reduction in the quality of the equipment being made as instrument accuracy has to be exact. The second was to improve the performance of one of their mobile units during times when the weather temperature was really hot or cold. They also had a chemical reaction issue with one of their machines due to outside airborne elements.

After over a year of R&D they were able to resolve both the chemical reaction and weather temperature issues. They are still working on trying to speed up the production line. A SR&ED claim was successfully submitted for all three of their R&D projects, in the amount of $143,000, even though the production speed up process to date has not been accomplished.

Advice for claiming SRED

The SR&ED claim process is complex and requires a deep understanding CRA rules and how they are practically applied.

Inexperienced SRED claimants often do not know how to keep proper records and notes – either under or overdoing it. Although proper documentation is required, it is also very specific.  Too much documentation of the wrong information is a poor way to spend valuable time and resources.  Getting mired in documentation and report writing for weeks and months at a time to can negate the value of the tax credits being recovered.

Also common is for organizations to document projects that turn out to be ineligible for SR&ED. Being clear which projects or parts of projects are eligible for SR&ED at the outset is critical to utilizing resources appropriately.

Get experience on your side

With time and accumulated experience, SR&ED advisors develop a full understanding of the claim process and the documentation necessary to support and successfully defend a claim in the event of a CRA audit.

Enhanced Capital Recovery offers a complimentary claim and project review service. We can offer insight into issues, or at the very least, confirm that you are receiving the best possible return for your company.  Contact us for a free evaluation today!

My 2016 R&D Resolution: Plan My SR&ED Claim Early!

There are significant advantages to planning your Scientific Research and Experimental new years research resolution 2016Development (SR&ED) claim in advance.  Did you know that by submitting your claim within the first six months of your fiscal year end, your claim will processed and returned by the CRA within one hundred and twenty days?

Less waiting means improved cash flow for your business, so make it your New Year’s resolution to plan your SR&ED claim early!

Getting started

Start the planning process with your SR&ED consultant and let him know that you want to plan out your claim from start to finish. Be sure to review your current time tracking and documentation methods.  Specific tools can be used to streamline this process and make gathering the necessary information at the end much easier.

Also, you want to ensure that your tracking methods meet the CRA’s strict documentation standards. The goal is to allow your team to focus on their business and giving you the peace of mind of knowing that your documentation will support your claim.

Why choose Enhanced Capital Recovery for your SR&ED planning?

Highly qualified and experienced SR&ED consultants can help you plan and then stay on track to ensure that your next claim is maximized and seamless.  Since 1994 Enhanced Capital Recovery’s team has been providing leading-edge technical and financial services to companies seeking to maximize their R&D incentives and tax recovery. With offices in BC, Alberta and Ontario, we offer a professional, end-to-end, risk free approach which explores all possibilities to maximize your R&D tax credits, especially SR&ED.

Industry expertise

Our team of professional consultants have specific industry expertise in engineering, healthcare, Strategy1manufacturing, software, construction and oil & gas industries and have advanced levels of education in business and engineering. Given our extensive experience and training in SR&ED claims, our team routinely recognizes non-intuitive and often unclaimed qualifying work which can substantially increase the amount of tax credits you receive.

Strategic partnerships

We recognize the value of strategic relationships in order to better serve our SR&ED clients. Therefore we’ve developed strong relationships with the CRA audit teams, alliances with key technology, agricultural and environmental stakeholders and we consult regularly with an advisory board of senior executives in industry leading companies.

Proven track record

Enhanced Capital Recovery’s reputation, knowledge and successful track record are widely recognized by our clients and the Canada Revenue Agency. As such, Enhanced Capital Recovery is quickly becoming one of Canada’s most trusted independent SR&ED consulting firms.

Risk free SR&ED services.

If you are creating new products, improving existing technology, advancing an industry process, or developing a technically challenging innovation, your company may be eligible to receive an SR&ED tax credit refund. Yet becoming familiar with the entire SR&ED claims process and filing the necessary paperwork can be a huge drain on resources. That is time and money wasted if the claim is rejected.

With our contingency based fees, we completely eliminate the risk of making a claim. We do the work up front and only get paid when your refund is secured.

Put the proven expertise of Enhanced Capital Recovery’s team to work to save you time and money to get the maximum refund you are entitled to.  Contact us today for a no risk, free consultation!

SR&ED Bakery Example | Gluten Free Product R&D

Businesses in Canada have long been taking advantage of the benefits of the Scientific Research gluten free bakingand Experimental Development (SR&ED) program.   With up to 60% of funding provided for innovative research and development in commercial applications, this program has assisted many Canadian companies in funding their R&D projects and remaining competitive in the both local and global markets.

Tax credits can apply to any business in Canada that meets the requirements.  Lately there has been a trend of businesses claiming for gluten-free product development. Bakeries and manufacturers that develop gluten-free products have the opportunity to receive funding from the Federal government for their work. Where ongoing R&D is occurring as a part of business activities, this may not only be a one-time claim, but can translate into an annual one.

If your company does one or more of the following activities, you may qualify for SR&ED tax credits:

  • Work on improved shelf life and durability of products
  • Create new products, recipes or packaging
  • Work to make your products more nutritious and more appetizing
  • Work to improve the food safety of your products
  • Develop more consistent products
  • Produce samples for sensory evaluation
  • Try to make your processes and products faster
  • Work through challenges of increasing the scale of production
  • Reduce the environmental impact of manufacturing processes
  • Reduce waste and scrap material

SR&ED bakery example: a chocolate maker

A chocolate maker decided to try and make a new line of gluten free chocolates. The two major problems were taste along with product shelf life. The taste on the initial batches was far from acceptable especially based on their customers’ expectations based on their existing products. In addition the initial prototypes had a much shorter shelf live than their existing products.

During testing they also had a problem with the wrapping paper sticking to the each chocolate masking it hard to unwrap them. After nine months of R&D they were able to solve all of these problems and they actually won an international award for their new gluten free chocolates. A SRED claim was successfully submitted, for all three of their R&D projects, in the amount of $130,000.

SR&ED claims require specialized knowledge

In order to first maximize your funding, the person preparing the claim must understand the intricacies of SR&ED and other R&D incentive programs. Understanding which incentives the business qualifies for requires both time commitment and knowledge of the Canadian Revenue Agency’s (CRA) criteria.

For organizations with a small, specialized staff, the majority of their energy is directed towards working on their projects.  In these circumstances, it makes sense to consider hiring an expert SR&ED consultant to manage the claim.

SR&ED consultants, like Enhanced Capital Recovery, can manage the claim end-to-end and in most cases greatly improve the amount of your claim.  Contact us today for a free, no risk consultation to see if your company is eligible for SR&ED.

R&D Tax Credits: Checklist for Software Developers

Software developers employ more than 300,000 Canadians in an industry that contributes nearly software development 22$30 billion to domestic growth, and the Canadian Revenue Agency (CRA) is rewarding these companies with increased SR&ED funding.

Many Canadian software development companies already qualify for a R&D tax credits through their routine business activities. Enhanced Capital Recovery can determine how much funding your business is eligible for and our professional consultants can take care of the complicated claim procedure for you.

Software projects that qualify

The SR&ED program accepts a variety of software development projects, ranging from improving your company’s employee scheduling program to developing a smart phone app—as long as the basic research and development criteria are met.

More important than your project’s success is the knowledge your company gained about the technology. Being able to express what your employees discovered in an area they didn’t initially understand is vital to a successful claim.

Checklist of activities related to software development that qualify for SR&ED tax credits?

If your company is currently involved in any of the following activities, it is likely that you would qualify for SR&ED:

  • Advanced technology in operating systems, programming languages, data management, communications software and software development tools.
  • Conducted research into methods of designing, developing, deploying, or maintaining software.
  • Produced advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating, or displaying information.
  • Filled a technology gap in order to develop a software program or system.
  • Conducted research and development into software tools or technologies in specialized areas of computing (i.e. image processing, geographic data representation, character recognition, artificial intelligence).
  • Attempted to improve the performance, speed or functionality of our application.
  • Encountered unexpected technical uncertainties during our development efforts (i.e. hardware / software incompatibilities).

Claimable expenses

Essential materials used in the project can be claimed, including hardware used for testing new software, or equipment used for data collection, analysis, or research undertaken during development.

Salaries of employees is one of the major areas of most SR&ED claims.  A portion of staff salaries directly involved with the SR&ED project can be recovered. The amount depends on the percentage of time the employee devoted to the project—developers that spent 60% of their time on the project could claim a significant portion this time.

Note that routine or non-technical tasks, such as marketing, advertising, customer support, or day-to-day business tasks cannot be recovered on your SR&ED claim.

Taking the next step with Enhanced Capital Recovery

The ECR tax consultant you work with is not only knowledgeable in SR&ED standards, but is an expert in the software development industry as well. The CRA expects your claim to be submitted using industry-specific terminology—something most in-house accountants have difficulty accomplishing.

Let Enhanced Capital Recovery assist you in discovering how much of your expenses can be recovered through the SR&ED program. To speak with an industry-expert consultant, contact us for a no-risk assessment today.

SR&ED Checklist for Agribusiness & Food Processing

Is your company experimenting with improving products, developing new products, packaging or agribusiness and food processes and wondering if this work might be eligible for R&D funding?  It’s a great question to ask as it is estimated that less than 50% of Agriculture and Food Processing companies are claiming the research and development funding they are eligible for.

The reason so many companies are missing opportunities is that they don’t understand the broad definition of research and development by the Canadian government.  In this article we’ll provide you with several examples of R&D funding and an overall SR&ED checklist that can help you identify potential opportunities that you might be neglecting.

It’s interesting to note that many of the examples of eligible R&D funding in agriculture and food processing are projects that most companies consider part of their routine business.  For these companies, once they begin to capitalize on this funding source, it could mean ongoing R&D funding to support future R&D, not to mention adding to their company’s competitiveness and bottom line.


As populations increase, farmers are advancing agriculture techniques. Changes in farming techniques that increase crop yield or alter equipment to increase production and safety are often eligible for R&D funding.

Other examples of R&D eligible activities that are common include attempts to make your farm more environmentally-friendly.  For example, developing alternatives to harmful chemicals, using equipment that requires less energy, or improving irrigation techniques and routines for reduced water use.

Finding a practical use for traditional waste (manure, groundwater, or leftover livestock feed) can receive funding, such as altering equipment to be powered by unused grains or corn.

Food Processing

Food processing companies may be involved in a variety of eligible activities including, developing an existing product to meet consumer needs of gluten-free, sugarless, and nut-free foods.

Experimenting with ingredients to extend a product’s shelf-life or to improve flavour and nutrition or conducting research on the impact of a process, such as your storage or shipping techniques are included in some R&D programs as well.

Vineyards and Breweries

In trying to create the next must-have wine, there’s a good chance you altered your usual process.  Experimenting with soil types, grape selection, and water control are everyday activities that qualify for tax credits.

Funding is also available for breweries. Examples of eligible projects include changing the bottling process for better efficiency, experimenting with hops to improve flavour, or developing new packaging to reduce materials.

Plants and Greenhouses

Everyday greenhouse operations could also lead to your business receiving funding. Modifying seed combinations, experimenting with temperatures, and determining how to better grow plants that are non-native to your area are examples that may qualify.

Various types of research may also be eligible, such as examining how different temperatures, lighting, and irrigation routines impact growth.

R&D Funding Checklist for Agricultural and Food Processing Companies

  • The following is a checklist of common activities that may be eligible for R&D funding.
  • Modifying processes to improve labour efficiency
  • Developing new products or packaging
  • Attempting to make products more consistent
  • Conducting experiments to reduce the impact of crop diseases
  • Extending the shelf life of products
  • Developing a healthier product
  • Developing custom equipment
  • Developing new crop varietals where there is uncertainty of success in the given growing conditions
  • Reducing the environmental impact of activities
  • Experimenting with organic/biological processes
  • Experimenting with unique combinations of chemicals to improve crop production
  • Developing more efficient material handling processes

Next steps

If you think your agriculture or food processing company might be conducting some of the above activities, we invite you to contact us for a free consultation to learn how to capitalize on this opportunity.


R&D Tax Credit Examples in Engineering & Construction

R&D tax credits, such as SR&ED in Canada, are not limited to scientists conducting sred in engineering and constructionexperiments in laboratories.  Although in order to qualify for R&D tax credits the R&D work must meet certain standards that show application of the scientific method, the definition is broad enough to encompass a wide variety of industries and activities, including in the fields of Engineering and Construction.

The reality is that Engineering and Construction firms are often paying for and taking the financial risks associated with engineering work focused on development. In our examples, the companies at first assumed that they would not be eligible for R&D tax credits.  This, however, was not the case.

Specific examples

In our examples, the engineering company was providing their services to one of their clients who was hired to complete an underwater tunnel. The engineering firm thought that only their client could claim for SR&ED because of the fixed fee contract agreement between the two companies.

The construction company thought that they could not claim SR&ED because the tunnel was the property of the city that hired them to build the tunnel. After reviewing the agreements between all three of these parties, it was determined the intellectual property rights belonged to the engineering firm and/or the construction company and not to the city that hired them.

Both companies were able to successfully claim SR&ED for their employee’s salaries who were involved in the R&D, engineering for their prototyping costs, cost overruns versus the flat fee contract, and the cost of materials consumed or transformed.

In total these two companies received $230,000 in SR&ED funding.  Both these companies also realized that they could claim SR&ED every year, for new and ongoing projects, as long as their contracts were worded with a SR&ED clause.

General examples

In general SR&ED eligible projects in Engineering and Construction may include:

  • development or improvement of construction and building materials
  • structural designs related to dynamic structures, for example, retractable roofs, solar energy systems
  • development of construction equipment, tools and temporary construction structures
  • development or improvement of construction techniques – such as in soil remediation or to achieve environmental certification under programs such as LEED

Who is eligible for SR&ED funding?

Almost any Canadian company can be eligible to apply for Scientific Research and Experimental Development (SRED).  Here are the details of the criteria from a company perspective:

  • Your R&D took place within Canada
  • You have proof of expenditures related to the claimed projects, for example T4s, and/or invoices
  • You have ownership of the Intellectual Property resulting from the project
  • You are in good standing with government financial reporting
  • Your project expenses were incurred within 18 months of the fiscal year-end as of filing

Why Choose Enhanced Capital Recovery?

All too many companies across Canada are satisfying the requirements of funding programs without realizing they may be eligible to recover up to 65% of their expenses.

Our team has brought success to various companies, including those whose claims were initially turned away by the Canadian Revenue Agency. To find out how your innovative engineering or construction activities could result in funding, contact Enhanced Capital Recovery today for a no-risk consultation.