SR&ED funding encompasses diverse financial incentives for research and development in Canada. Refundable tax credits offer immediate cash benefits regardless of profitability, while non-refundable credits offset tax liabilities. Grants and loans provide upfront capital, often through competitive applications. Provinces and territories offer additional incentives, complementing federal programs. Collaboration fosters innovation, encouraging partnerships between businesses and research institutions. Understanding these SRED funding avenues enables businesses to strategically leverage resources, driving innovation, economic growth, and long-term success. For more, visit us at https://www.sauconsulting.ca/our-services/sred/

1. Understanding
Different Types of
SR&ED Funding
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2. Introduction
SR&ED (Scientific Research and Experimental Development) funding is a
program in Canada designed to incentivize research and development
activities by providing tax incentives and funding to eligible businesses.
There are several types of SR&ED funding available:

3. SR&ED Tax Credits
This is the most common form of
SR&ED funding. Eligible
businesses can claim a tax credit
on qualified SR&ED expenditures,
including wages, materials,
overhead, and subcontractor costs
directly related to R&D activities.

4. Investment Tax
Credits (ITCs)
SR&ED-eligible corporations may
receive a tax credit that can be used
to reduce income tax payable or
refunded in cash. The tax credit
rate varies depending on the type of
business and the nature of the
expenditure.

5. Provincial Funding
Programs
Some provinces in Canada offer
additional funding and incentives for
SR&ED activities on top of the federal
program. These programs may include
grants, loans, or tax credits specific to
each province.

6. Partnership Grants
In some cases, businesses may collaborate with research institutions or
universities on R&D projects. These partnerships can sometimes lead to additional
funding opportunities through government grants or collaborative research
programs.

7. Strategic Innovation Fund (SIF)
This fund supports large-scale, collaborative projects aimed
at fostering innovation and growing Canadian businesses. It
provides funding for projects in various sectors, including
advanced manufacturing, clean technology, and digital
industries.

8. Innovation Assistance Program
(IAP)
This program provides non-repayable contributions for innovative
projects in Canada. It is aimed at small and medium-sized enterprises
(SMEs) and offers funding to support pre-commercialization activities,
such as R&D, testing, certification, and demonstration.

9. SR&ED Program Refunds
If a corporation is a Canadian-
controlled private corporation
(CCPC) and meets certain
criteria, it may be eligible for a
refundable SERD tax credit. If
the corporation has no tax
liability against which to apply
the credit, it can receive a
refund.

10. Contact Us
ADDRESS
Suite 2010,777 – 8th Avenue SW, Calgary, Alberta, T2P 3R5
EMAIL
info@sauconsulting.ca
PHONE
(587) 284 3266