This document provides an introduction to Canada's Scientific Research and Experimental Development (SRED) Tax Incentive Program. The program seeks to encourage technological advancement, foster competitiveness, and stimulate economic growth. It has existed since the 1980s and provides tax credits to corporations based on a percentage of qualified SR&ED expenditures. Eligible work includes overcoming barriers through systematic investigation or exploration of alternatives to achieve a technological advancement.

1. Introduction to the Scientific Research and Experimental Development (SRED) Tax Incentive Program

3. Foster the competitiveness of Canadian products in the international marketplace

4. Stimulate domestic economic growth, ensure sustainable businesses and

6. Developed by the federal government to put Canada forward as the best place in the world to perform research and development

8. SR & ED Case Studies Tool & Die shop, serving the automotive industry, with annual sales of $3M. The company submits SR&ED claims of more than $750k in expenses, resulting in a cash return of over $300k/yr. Software company with annual sales of $5M. SR&ED claims of more than $1.2M in expenses, resulting in a cash return of over $550k/yr. Represents 91% of technical operating budget

11. New Product Development

12. Manufacturing Engineering Technology

13. Process Development

15. quality control

16. commercial production

18. Calculated at 20-35% of qualified expenditures

20. Materials: Consumed / Transformed

21. Contracts

22. Capital Assets: Machinery / Equipment

24. Constraints,

25. Uncertainties,

26. ChallengesPoint A (Base Level) Base Knowledge (B –A) = Knowledge Gap or Technology Gap

28. Technological Uncertainty

30. Measurable Examples Page refresh time of x ms Roundtrip from database in x ms Benchmarks

32. Making incremental improvements to existing products or processes

34. Availability Can you buy this x in a store? Are you extending that capability?

35. Obfuscating Heuristic Algorithm Real-time Remote Manageability Virtualization ITIL LINQ MVC - Model View Controller Composite Application Guidance XAML PCMCIA