Is Your Company Eligible for SR&ED Tax Credits?
1. Has your company developed a product or process that you have patented or plan to patent? Alternatively, have you developed specific know-how that you treat as a trade secret?
Work that leads to a patent or a trade secret is very likely to be eligible.
2. Has your company developed a new (or improved) product that advances the state of the art in some way, and which required one or more redesigns, simulations, mock-ups and/or experimental trials to achieve?
Example: Yes. We developed a timing belt pulley that was 10% lighter than our competitor’s product. We built several prototypes before we proved that it was feasible.
3. Have there been any process improvements in your operation that have involved the development, integration or prototyping of new or innovative technology?
Example: Yes. In order to meet our customer’s increased production quota, we developed a better way of cooling our injection molds faster, and we were able to achieve a 15% improvement in cycle time.
4. Did you develop or incorporate a new technology in order to catch up to a competitor?
Example: Yes. Our chief competitor developed a proprietary silk screening method that allows them to sell for less. To stay competitive, we had to develop our own system.
5. Were there any product or process improvements that you attempted to develop but eventually abandoned? Note: A project doesn’t have to be successful to be eligible.
Example: Yes. We attempted to develop a rubber that was heat resistant up to 900 degrees, but we gave up after a year when we could only achieve a resistance up to 700 degrees.
6. Has your company been involved in an Industrial Research Assistance Program (IRAP) project, currently or in the past?
IRAP and SR&ED share similar eligibility criteria. Some or all of the company’s contribution (i.e., the portion of an R&D project not funded by IRAP) may be eligible.
7. In order to carry out projects such as the ones listed above, did your company incur costs in any of the following categories:
If you answered ‘Yes’ to any of these questions, contact The Empyrean Group for a free consultation.