We didn’t think we were eligible because our product
was not new in the market. In addition, some of our development
attempts failed.
But BeneFACT’s comprehensive approach resulted in
a successful application and a large refund!
Some of the most common misconceptions regarding the SR&ED
program eligibility are:
A
product or process has to be new to the claimant alone. Similar
or superior products may be offered by the competition. As long
as a technological challenge was encountered in the course of your
work, a solution was not readily available in the public domain
and a systematic approach was attempted to remove the associated
uncertainty, the work is eligible.
Similarly, your advancement does not have to be large or represent
a ‘quantum leap’ in your respective field. Small incremental
changes or improvements are sufficient.
Lastly, the commercial or technological success of the project
is irrelevant. Failed, cancelled, postponed and abandoned project
qualify for the tax credit as long as they meet the SR&ED criteria
of technological uncertainly, systematic investigation, and technological
advancement. The technological advancement of failed projects lies
in the acquisition of new industry-specific knowledge and expertise,
even if it just learning that something will not work.