Skip Ribbon Commands
Skip to main content

Is your food processing business missing out on significant SR&ED tax refunds?

15/04/2010


The Scientific Research & Experimental Development (SR&ED) Tax Credit Program offers over $4 billion per year in funding and is the single largest source of federal government funding for industrial research and development. These tax credits can have a measurable impact on your business’s bottom line. For example, spending $50,000 in R&D can result in $20,750 SR&ED refundable tax credits paid in cash. However, less than 15% of all qualifying businesses actually apply for these benefits. The Scientific Research & Experimental Development (SR&ED) Tax Credit Program offers over $4 billion per year in funding and is the single largest source of federal government funding for industrial research and development.

Are you eligible for the SR&ED program?

Whether you are a food processor, bakery or restaurant, some of the initiatives that qualify for the SR&ED program are:

  • Recipe changes that improve taste or quality
  • Improving nutritional properties (i.e. low fat, low calorie, no trans fats, etc.)
  • Eliminating allergens, preservatives, artificial dyes
  • Increasing your product’s shelf life
  • Modifying equipment, food processing or appliances to support the above

Maximizing your SR&ED credits

To ensure you get the most from your claim, seek assistance from a professional who will help you  identify eligible projects, develop accurate project descriptions and review your claims and financials to ensure that all your eligible expenditures have been included should you prepare your own claim. A professional can also train your team to perform these activities in-house, participate in Canada Revenue Agency (CRA) reviews if your claim is under review and assist with strategic tax planning by structuring your SR&ED activities to receive their maximum benefit.

To find out how your agrifood business can benefit from the SR&ED Tax Credit Program, please contact your local MNP advisor.