Category Archives: SR&ED Examples

Food Industry Research and Development Funding Examples

When looking to future opportunities in the food industry, kale and quinoa may be yesterday’s news. What does that future consist of? Would you believe tiny yellow, green, red or orange seeds of the legume family, called pulses? In fact, pulses are poised to be the next big food trend. In this article we’ll explain this trend as well as provide some food industry research and development funding examples to show you how your company can maximize all funding opportunities.

What are pulses?

The term “pulse” refers only to the dried seed of the legume family. The United Nations Food and Agriculture Organization (FAO) recognizes 11 types of pulses, with the most common varieties being dry beans, dry peas, chickpeas and lentils.

With 2016 named the International Year of Pulses, the spotlight shines on a food crop largely ignored by food processors in North America. Despite this, pulses are a huge crop for Canadian farmers and exports. In fact Canada is the world’s largest producer and exporter of lentils and dry peas to countries such as India, Turkey, Egypt, China and Bangladesh. In 2015 Canada exported six million tonnes of pulses worth nearly $4.2 billion to more than 150 markets around the globe, according to Pulse Canada, a national industry association.

What are the new applications of pulses in food products?

A credit to new research and development, however, pulses have revealed themselves to be versatile ingredients. As consumer awareness continues to grow around the nutritional benefits of pulses, the number of products fortified with pulses will continue to expand.

Already food manufacturers have added pulses or pulse products to innovative food products such as breads, cereals and baking products; pasta and sauces; meat and dairy-free alternatives; snacks; and beverages.

Pulse R&D receive close to a million dollars in Federal funding

While a large portion of pulses produced in Canada are intended for exports, the last decade has seen a focus on enhancing secondary processing, thanks to organizations such as the Canadian International Grains Institute. Ten years ago the non-profit launched a pulse-processing and specialty milling facility and a project that assessed pulse quality with developing methods for dehulling and splitting pulses effectively and efficiently.

This early work laid the foundation for investigating milling methods and how they affect the functionality of pulse flours as ingredients in food product applications such as baked goods, Asian noodles, extruded snacks and batter-coated products.

The Canadian International Grains Institute latest project, which received a funding boost of over $950,000 from the federal government last year, looks at the nutrition of pulses how it translates to applications in food.

Examples of food innovation

Examples of innovations using pulses include looking at bean flours as an egg substitute in baked goods. Some food manufacturers have already been able to develop several recipes eliminating eggs, including a completely vegan, nut-free, bean-flour based French macaron.

Another product is called “Fiberger,” an innovative, nutritious, high fibre meat extender made from red lentils, green peas and chickpeas. Created by Caileigh Smith and Evelyn Helps of the University of Guelphm Fiberger can be used in many different ways. “For example, adding Fiberger to patties and meatballs can reduce the amount of meat required, while adding fibre and protein to enhance the nutrition of the meal. Fiberger can also help families decrease their food costs by giving them a healthy, affordable ingredient to add to their protein dishes.”

Get funded today

Are you an agribusiness or food manufacturing company? To find out how your organization’s food and agriculture activities could result funding, contact Enhanced Capital Recovery today for a no-risk 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 routine 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.

SR&ED Checklist for Agribusiness & Food Processing

Is your company experimenting with improving products, developing new products, packaging or 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.

Agriculture

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 experiments 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.

R&D Tax Credits in Life Sciences & Biotech

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. These are often overlooked.

The question is, “Is your company one of many who are missing the opportunity claim R&D tax credits?”

Find out which R&D tax credits in life sciences & biotech are available. We’ll show you what type of companies can claim SR&ED, as well as some examples of projects that would qualify.

Who is already claiming SR&ED?

In the field of Life Sciences and Biotechnology R&D tax credits are available to a range of companies, including contractors such as analytical laboratories, contract research laboratories or contract manufacturing organizations. Examples of types of companies already claiming include:

Biotechnology – Biological Product Manufacturers
Pharmaceutical – Pharmaceutical and Medicine Manufacturers
Nutraceutical – Producers of isolated nutrients, dietary supplements and herbal products
Medical Equipment and Supplies Manufacturers
Electro medical and Electrotherapeutic Apparatus Manufacturers
Biotechnology & Life Sciences R&D Facilities

Project examples that are SR&ED eligible

Has your company conducted pre-clinical or clinical studies, devised new analytical methods or instruments in the process of conducting business? Much of this activity, which is often perceived by organizations as routine work, could be SR&ED eligible.

Here are some basic projects from previous SR&ED claims that are typical examples of SR&ED eligible projects in Life Sciences and Biotechnology industries:

Creating new or enhanced manufacturing processes
Developing or enhancing existing tools or devices
Developing a new or improved cultivation of plants
Conducting breeding programs which modify organisms
Developing computer programs
Developing green technologies
Advancing bioinformatics from living organisms

How we 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.

SR&ED Examples; Is your company missing out on R&D Funding opportunities?

Recent news of more than 50 new technology and innovation companies going public on TSX/TSXV since the start of 2014 shows that tech and innovation is thriving in Canada.

But the good news about Canadian innovation has been appearing across many industries including: manufacturing, agribusiness, sustainable energy development, software development and more.

Canada’s thriving growth in innovation is in part attributable to the research and development support available. The scientific research and experimental develop program (SR&ED), the largest and best known example, is a generous R&D tax credit incentive offered by the Federal Government of Canada. The program pays more than 20,000 eligible Canadian Controlled Private Corporations in excess of $3 Billion CDN each year.

The question is, is your company one of over 58% of companies who are not taking advantage of R&D funding opportunities?

In this article, we will demonstrate the results of taking advantage of the opportunities available through two recent SR&ED examples.

Sustainable Energy

Sustainable energy is an industry that by its very nature is constantly looking for ways to innovate. Our example is about a company that created a different version of a windmill, and in the process, generated $245,000 in SR&ED funding.

What was different about this windmill is that it used sails instead of blades used in traditional windmills to generate power. These sails collected more wind than blades thereby generating more power. Further power generation was achieved by putting solar panels on the frame of the windmill.

To create additional revenues, the new technology allowed the company to incorporate paid for advertising on the sails, which was readable from short and long distances.

This windmill company was able to successfully claim SR&ED based on their employee’s salaries who were involved in the R&D, the subcontractors they hired to help with design, engineering, renewable energy certifications, all of their prototyping costs, and the cost of materials consumed or transformed.

As the company continues to develop larger sized windmills, and to improve the sails / solar panels performance, they will be able to claim SR&ED on an ongoing yearly basis.

Agribusiness

Agribusiness is another industry which shows a constant influx of innovation through research and development activity. A greenhouse sod company was able to obtain $130,000 in SR&ED funding by coming up with a new way to grow sod, which was easier to water and fertilize while it was being grown, and easier to harvest when ready for sale.

The advance in technology which allowed for growing sod in this manner, was based on a patented method of growing the grass on plastic, instead of on soil. The plastic made it every quick and easy to peel the grass off the plastic instead of the standard harvesting methods used by traditional soil sod farms. In addition water and fertilizing was much easier, quicker and required less product, because the sod was grown on off-ground racks.

This sod farm was able to successfully claim SR&ED for their employee’s salaries who were involved in the R&D, the subcontractors they hired to help with design, engineering, environmental certification, all of their prototyping costs, and the cost of materials consumed or transformed.

SR&ED will continue to be claimable every year as they test different types of plastics, growing racks, water / fertilizer combinations, and the growing of other things in addition to sod.

Get Started

Enhanced Capital Recovery can help you maximize your research and development funding opportunities and explore all possible avenues. Contact us today for a free consultation!