Eligible Canadian companies have a beneficial resource in the Scientific Research & Experimental Development (SR&ED) program available to them, yet many shy away from applying due to a variety of myths surrounding the incentive.
Truth is, all Canadian Controlled Private Corporations (CCPC) can to apply to the SR&ED—regardless of industry, business size, and commitment to research and development. A qualified consultant can find incentives in any sector and make applying a hassle-free and speedy process.
These are the most common misconceptions about the SR&ED program that keep eligible Canadian companies from recovering their expenses each year.
“Only the big corporations can apply.”
Three quarters of all SR&ED applications are from small and medium-sized businesses. Many have fewer than 100 employees and company expenditures don’t need to be six figures to qualify.
The Canadian Revenue Agency directly states their willingness to provide funding to companies of all sizes, and ECR is able to work with any enterprise as well. Not to limit the claims to small companies however, claims from large corporations are also encouraged–unlike other federal programs that limit applications to smaller companies.
“My industry doesn’t qualify.”
If you own a CCPC and it satisfies program criteria then it can qualify for incentives, regardless of the industry. Your business does not require research laboratories to receive funding, and companies from a variety of sectors qualify each year.
Whether your company increased the nutritional value of baked goods or advanced solar power technology, the SR&ED provides to expense recovery to businesses of many industries.
“My research experiments failed—or I didn’t attempt any at all.”
A big misconception about the program is that companies need to focus on scientific research to qualify, however most claims fall under experimental development. This doesn’t need to be rocket science, as developing new products, ideas, or routines can meet the criteria.
If your business did attempt a scientific project without success it can still be eligible, since the program provides funding based on intent and expenditures. Your company’s work doesn’t need to be innovative or greatly advance its technology to be eligible, either.
“I don’t owe any taxes so my company isn’t eligible.”
Even companies that don’t owe taxes can still qualify for funding at the time of their claim. Applications can be made each year, regardless of the company’s current or previous status.
“My company doesn’t have time to apply.”
While it is true the SR&ED program requires time and knowledge to be of benefit, experienced consultants exist to assist in filing your claim. ECR’s professionals know exactly which incentives your company can qualify for, and we do the paperwork so you can focus on your business.
Our team has brought success to numerous organizations, including those whose claims were initially turned down by the Canadian Revenue Agency. Your company will work with SR&ED Consultants knowledgeable in the industry to recover the most funding possible.
Enhanced Capital Recovery has an expert team of professional SR&ED consultants to ensure that you maximize your SR&ED claim, successfully overturn a rejection, or review your claim to add value before submitting. For a no-obligation consultation, submit a contact form and our team will arrange a free assessment of your case.