There are three fundamental criteria used to decipher whether a project is eligible for SR&ED tax benefits or not:
It is also important to note that success or failure does not matter in the eyes of SR&ED. Even if a project is a complete failure, you may still be able to claim it as part of the SR&ED program. With SR&ED, it’s not about winning or losing, but how you play the game.
If a project has met the three criteria of SR&ED, there is a high chance that it is eligible for SR&ED benefits. If you’re wondering about specific projects, here are a few examples to get you on the right path:
There is one question that gets asked quite a bit by those new to the SR&ED process, and that’s about marketing trials. It is important to note that market research, routine data collection and sales promotions are not eligible under the SR&ED program guidelines.
One of the best ways to know if a biotechnological or life science activity is eligible is to ask. SR&ED experts, like those at BeneFACT Consulting Group, work on SR&ED claims all day, every day. They have an excellent knowledge of not just the system, but what part each project plays in submitting a claim. Putting the SR&ED puzzle together can be a bit tricky but, if done correctly, can make a very pretty picture in the end.
*The information above is meant for informational purposes only, and not to be used as financial or legal advice.