The program for SR&ED (Scientific Research and Experimental Development) tax credit program is a government incentive program which aims to support innovation and Canadian leadership by subsidizing eligible expenses. It is one of the most generous and important programs for firms undertaking experimental development in Canada. It is a long standing program in Canada that other countries have emulated.

However, it now appears that  major changes are coming following several recent studies and related comments by the  Conservative government. The budget that is due in the next 60 days will likely have some or all of the following changes:

1. Limiting of eligible expenditures to solely labor (employee and subcontractor expenditures);

2. Reduction in the tax credit rate for SMEs;

3. Limiting of the billing methods by consultants to non-contingency methods; and

4. Addition of new strategic direct funding programs (i.e. grants).

For more information, visit www.fundica.com or call 1-855-386-3422