Many people think that the access to Canadian Government funded R&D incentives is limited to manufacturers and research labs. It is exciting to discover that small businesses in the food industry (like bakeries and restaurants) are also prime candidates who can and should take an advantage of this amazing funding program!
The SR&ED program aims to reimburse companies for their experimental development expenses. The goal is to make creativity and innovation affordable in the Canadian business environment and foster future development.
The program is highly relevant to small businesses, where a refund of $20K-$70K could mean a world of difference. The actual refund amount depends on proper identification and qualification of eligible expenditures.
What can possibly qualify a bakery or a restaurant for governmental R&D incentives?
- Recipe changes that improve taste or quality
- Improvement of nutritional properties (low-fat, low calories)
- Elimination of allergens, preservatives, artificial dyes
- Increase of a product shelf life
- Equipment or appliance modifications
- And more…
In order to stay competitive, food producers must respond to changing tastes and demands. Experimenting with new ingredients, modifying products to suit recent diet fashion – all these activities often qualify as shop-floor experimental development.
Working on new ideas takes time, wastes materials and requires equipment modification. The SR&ED program allows retrieving these expenses:
- 68% of qualified payroll costs
- 41% of sub-contractor expenses
- 22.6% of capital expenditures
The refund has no strings attached – the owners are free to spend it anyway they like – buy new equipment, avoid eliminating a job, or give everyone a big bonus – the decision is yours!
Using the extensive experience of trained engineers (like our team), business owners have the opportunity to review their potential for qualification, and complete the application process in a few hours, and with no up-front costs.
Discovering that your business is eligible for SR&ED funding makes a world of difference – on the bottom line, as well as future planning!
Call (416) 548-8626 for an instant consultation.
Return to: SR&ED claims related articles
Revised:
November 13, 2009
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