There can be no better time than now to reap rewards of funding schemes for your business. The great news is that startups and entrepreneurs do not have to worry about selling equity or saving on personnel costs. The IT startup funding and SR&ED credits are a new form of financing made available to bolster growth of innovative Canadian businesses.
SR&ED consultants and SRED credits consultants provide consulting services to Canadian companies and help them identify their SR&ED claims in order to receive their R&D refunds, provincial and federal refunds or tax credits.
CI solutions serves Canadian businesses all across Canada and their expert SRED credit consultants team includes Patent funding consultants, IT grant consultants to deliver top-quality professional services.
In this blog, we will be answering some commonly asked questions when it comes to SRED credits.
Let’s start with what is SR&ED Finance?
SR&ED stands for Scientific Research and Experimental Development (SR&ED) nation-wide tax credit or incentive devised by Canada Revenue Agency (CRA). It is a reliable financing scheme that has been running to help eligible companies gain financial authority and make use of tax credit early in the form of a loan and enjoy significant tax reliefs.
By now, you’d be wondering what is the eligibility of SR&ED claims?
The answer is simple. If you are a Canadian startup or a business performing research and development activities you are eligible. Canadian-controlled Private Corporation (CCPC) can qualify for 35% in Investment Tax Credits (ITC) up to the first 3 million dollars of the qualified expenses for SRED as well as 20% on excess amounts.
Other Canadian proprietorships, corporations, trusts and partnerships can enjoy 20% in ITCs of the qualified expenses for SRED.
What Expenditures Qualify for SR&ED Credits?
The spending on your project that involves innovation, research and development totally qualifies if backed with proper documentation and timesheets. Any costs incurred on the following can be claimed:
- Salaries of employees
- Third-party payments
- Material costs
- Any overhead expenses
Small businesses can be hugely benefited and can maximize fundings and claims from SRED credits which can be used to advance and bring more innovation, automation and development of their respective industries.
At CI Solutions, our specialized team of qualified and proficient engineers offer advanced SR&ED consulting services to the clients from start to finish. We specialize in aiding your business development by offering our expertise in helping you identify the incentives and grants that can help your business succeed and enjoy financial freedom.
Find Out How Much You Can Receive in SR&ED Credits!
Contact us today to book a FREE no obligation SR&ED consultation for your small business. We proudly serve all across Canada!