New guidelines feature simplified explanations of the Scientific Research and Experimental Development (SR&ED) tax incentive program requirements, clear breakdowns of what constitutes eligible work, and links to further guidance on what can be claimed and how to support that claim. The eligibility rules themselves remain the same and continue to be based on the Income Tax Act’s existing definition of SR&ED.
Applicants now need to focus on two key requirements in order to be eligible: Answering the How and Why of SR&ED research. The How component addresses the need for work to be a “systematic investigation or search carried out in a field of science or technology by means of experiment or analysis,” while the Why requirement directs applicants to outline how the work advances scientific knowledge, or technology.
This streamlined process is welcome news for claimants who previously tackled onerous and complicated red tape while filing claims. Businesses will find it easier to assess whether their work is eligible for SR&ED tax incentives at the outset.
For more information, and to find out if you may qualify for these benefits, call Jason Adams, 877-753-2678, or email Jason [email protected]