Allowances For Research And Development Companies

The Canadian Revenue Agency website defines the SRED program as “a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada. It is the largest single source of federal government support for industrial R&D.”  The Canadian government wants to help the research and development industry by giving favourable tax treatments to those companies in the field.  Those that apply for the scientific research SRED may be granted cash refunds and/or tax credits towards expenses.  There is an application process and plenty of paperwork involved however so you are best to contact a firm that specializes in these government programs.