Engineering Design Operations research Mathematical analysis Computer programming Data collection Testing Psychological research Work with respect to the eight categories listed above does not constitute SR&ED on its own. However, if it is commensurate with the needs and directly in support of basic research, applied research, or experimental development work undertaken in Canada, it falls withi..

Experimental development Work undertaken for the purpose of achieving technological advancement for the purpose of creating new, or improving existing, materials, devices, products or processes, including incremental improvements More than 85% of SR&ED claims fall under experimental development Applied research Work undertaken for the advancement of scientific knowledge with a specific practical..

How A systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis Why To advance scientific knowledge through basic or applied research or achieve technological advancement through experimental development

SR&ED activities conducted in Canada by or for you SR&ED is related to your business Expenditures are incurred Corporations need to file a full claim within 18 months

1. Deduction of expenditures to reduce tax liability can be carried forward indefinitely 2. Investment tax credit 35% for CCPC(Canadian-controlled private corporation) - graduated after 10M taxable capital value 15% for non-CCPC

$3 billion in investment tax credits provided every year 60,000 R&D projects 20,000 claims 30% of claims are selected for review or advisory services 90% of claims are accepted with little or no change