| SR&ED are a very important and significant | | | | advancements and procedures that not much |
| financial aid to companies that make new | | | | information is available for. The point is to |
| technological discoveries. They exist in Canada and | | | | encourage companies to expand and discover and |
| help promote growth through the development | | | | research. Things that are not eligible generally |
| and marketing of innovative new technologies. | | | | include pre-set tasks that follow a mundane and |
| It works almost like a tax credit that companies | | | | well-known protocol. |
| in the US receive. In Canada, qualified companies | | | | In order to be approved for SR&ED incentives, a |
| receive a check from the government for up to | | | | company must base its findings purely on |
| 70% of all salaries of those involved with the | | | | experimentation or research that is not publicly |
| development of these new software and | | | | available. This includes any information that is |
| technologies. This saves companies a significant | | | | easily available on the Internet, in encyclopedias, |
| amount of money because they can save | | | | or in textbooks. |
| themselves from having to pay almost 70% of | | | | Typically, if a company can demonstrate why |
| these employees salary. This is a significant | | | | their work was relevant, why the work was |
| incentive and profit booster for Canadian | | | | innovative, how employees learned from the task, |
| companies. | | | | and why the task was difficult, they can become |
| Government checks also usually cover up to 22% | | | | eligible for a check. Of course they must also |
| of equipment used to develop new technology | | | | meet the requirements described above. |
| and pays nearly 50% for contractors that are | | | | Essentially, the government chooses not to |
| used throughout the process. Many different | | | | analyze your work and determine your eligibility, |
| types of companies are eligible to receive these | | | | but asks you to demonstrate why you deserve |
| government benefits including imaging companies, | | | | the incentive. |
| software developers, IT specialists, | | | | These types of incentives are not only extremely |
| telecommunication companies, ecommerce | | | | beneficial; they are very necessary to encourage |
| companies, game companies, genetic imaging | | | | this type of research to continue. It is these |
| companies, and fuel cell companies. More are | | | | types of donations that keep companies eager to |
| eligible. | | | | develop and research and experiment and come |
| Only private Canadian companies can receive | | | | up with new ways of doing things. Of course, this |
| these checks. However, the Canadian government | | | | kind of study only furthers the advancement of |
| does offer SR&ED tax credit to public companies | | | | society and helps initiate the kind of progress we |
| or non-Canadian companies with similar benefits. | | | | need. Problem solving and innovation are two |
| This allows other companies to maintain similar | | | | ways to ensure we continue to progress. We are |
| profit benefits. | | | | certainly better off because of these types of |
| It is important for companies to understand that | | | | programs and these types of jobs and it is a |
| these incentives are not to be available for typical | | | | good thing if the government can help keep these |
| work that is already well understood and about | | | | companies performing. These checks are a great |
| which there is much information. These kinds of | | | | way to promote this type of research. |
| incentives are for new, cutting edge technological | | | | |