What is the SR&ED tax credit?
The SR&ED tax credit, or “shred tax credit” as it’s lovingly dubbed, is a program created by CRA to incentivize companies contributing to the economy through Research and Development.
Companies are eligible to claim back up to 55%+ of eligible spending, and that includes salaries, subcontractors, and SR&ED relevant consumables. For many high-growth companies, it can add up to multiple hundreds of thousands or even millions of dollars.
To access the tax credit, a company has to have at least one completed financial year, in which the eligible spending has occurred. For the consultant to assess the refund, a company has to finalize their accounts and file their SR&ED tax credit claim, ideally as part of their T2 filing.
This approval process can take up to 60 days, or up to 6 months in the case of an inquiry.
What is an SR&ED tax credit loan?
The SR&ED Advance Funding option is a loan facility taken out against a company’s future SR&ED tax credit refund. The r&d financing option can be accessed up to half way through the fiscal year, is affordable and can be used even if you are pre-revenue. For more info on the SR&ED grant loan see our guide.
R&D tax loan
Is my company eligible?
Eligibility isn’t complicated but does take into consideration a number of circumstances relating to your company setup and operation, however generally if you fit the following criteria you should get in contact to discuss your options.
