Quebec Finance Minister Carlos Leitao announced cutbacks to the Quebec SR&ED tax credit program during his December 2nd economic update. Although SR&ED is a federal program, each province or territory may also provide provincial or territorial tax credits to qualifying corporations carrying out SR&ED in their respective province or territory.
Effective immediately, minimum eligibility thresholds will be introduced for the Quebec provincial tax credit. The provincial government will be establishing a minimum expenditure threshold situated $50,000 (for companies with less than $50 million in assets) and $225,000 (for companies with assets totalling over $75 million). This threshold will increase linearly from $50,000 to $225,000 for companies with assets between $50 million and $75 million.
Secondly, Quebec’s enhanced SR&ED tax credit rates for research contracts, private partnership research, and fees paid to a research consortium will be standardized (to be set at same rate as researchers’ salaries) as of December 3, 2014.
The Canada Revenue Agency (CRA) has launched a new 4-part video series about the SR&ED program. The 4-part series covers the following topics:
- Who can claim SR&ED tax incentives
- What work qualifies for SR&ED
- How do you calculate your SR&ED expenditures and investment tax credit
- How to apply for SR&ED tax incentives
The SR&ED program can have a significant impact on the affordability of product development for food processors. But SR&ED isn’t solely concerned with a R&D team- Eligible SR&ED costs and claims may be initiated, supported, or documented in other operational areas, especially quality assurance and food safety. Both of these areas are fundamental parts of any food and beverage company’s daily operations, and they present a typically well-authenticated opportunity to initiate, support, and document experimental development activities and associated costs. As two departments that rely heavily on documentation and analysis, quality assurance and food safety are not only important to a business’s bottom line, meeting industry standards, and quality production, but also offer a wealth of information that can lead to SR&ED claims that were previously missed or undervalued. More about how quality assurance and food safety departments can help substantiate SR&ED claims can be found in Food Quality and Safety’s special feature.
NorthBridge Consultants will be hosting a seminar on alternative financing options for small- to medium-sized enterprises in Cambridge, Ontario on September the 18th, 2014. Topics covered will include:
- Government funding and financing for business expansion
- SR&ED financing
- Other private sector financing options
Registration for this event is available online.
The Nova Scotia Tax Services Office is providing free information seminars to provide a general overview of the SR&ED program, in order to to explain eligibility criteria, what expenditures are eligible, and how to file a SR&ED claim. Their next Halifax seminar, on September the 25th, is intended for accounting firms and tax preparers who prepare SR&ED claims. There is no charge to attend. Pre-registration is required, as seating is limited.
Date: September 25, 2014
8:15 a.m. to 8:30 a.m. – Registration
8:30 a.m. to 12:30 p.m. – Session
1557 Hollis Street
Halifax, Nova Scotia
This location is wheelchair accessible. If you need more information, please contact Jacques Fournier at 506-856-9189. Register online now.