Let’s face it, it’s not easy to take an idea and turn it into reality. Being an entrepreneur is hard because it’s all on you! Success is on you. Results are on you. Making the call is on you. Worst of all, doing the things you don’t like to do… also on you.
The truth is that being an entrepreneur will test you in ways you didn’t think possible but we want you to pursue it anyway. We also want you to know, you’re not alone. There are a ton of support services and funding opportunities available to entrepreneurs in the Okanagan ready to take the plunge.
Let’s talk about SR&ED (aka: shred).
SR&ED is the single largest source of federal government support for industrial research & development. This is a federal tax incentive program that is administered by the CRA. Any Canadian company of any size in any sector that is conducting research or development (i.e. development of software, or manufacturing product) in Canada can take advantage of this program.
What does that mean? It means that companies doing R&D can claim cash refunds and/or tax credits for their eligible R&D expenses. If you are a Canadian-controlled private corporation in B.C. you may be eligible for a refund of $0.65 for every $1 of SR&ED eligible salaries paid in the taxation year.
Are you eligible for SR&ED?
A great way to find out is by chatting with your SR&ED tax specialist. You can also start by asking yourself a few of the following questions:
Is there technological uncertainty or a roadblock that you are trying to solve?
Are you advancing technology?
Can you track and document the work performed in a methodical and systematic way?
Are you a Canadian controlled company in a relevant sector (ex. Agriculture, Manufacturing, ICT, etc.)?
What do you get by claiming SR&ED?
If you are a Canadian-controlled private corporation (CCPC) and Small-Medium sized enterprise (under $500k in net taxable income) the you can claim back 65% of salaries of those putting work on the project, 32% of contractor wages and 42% of materials.If you are a non-CCPC or large CCPC you can claim back 36% of salaries of those putting work on the project, 18% of contractor wages and 24% of materials.
For those looking for support when applying for SR&ED, check outsredscore.com. If you have questions for accountants, feel free to reach out for an Expert Access session with one of our accounting Partners.
Want to learn more about funding and support resources? Connect with me and let’s find funding and support that will work for you and your business.