The Speech from the Throne is historically used to set political direction for the coming year, so what exactly does it mean that the SR&ED Tax Credit program was mysteriously missing from this year’s speech?
Delivered back in October by Governor General David Johnston, the most recent Throne Speech touched on the usual – jobs, economy and trade – but also specifically went into detail about innovation, manufacturing and some of the funding initiatives going toward these areas, both past and present.
If this Throne Speech is setting the stage for the 2015 election, what does this mean for SR&ED? On the plus side, no cuts to the program were discussed. However, no extra funding or positive SR&ED amendments were mentioned either. With no clear clues as to the future state of the program, only time will tell what further alterations may occur. What we do see from these initiatives is where the reallocation of funds is going from the recent cuts to the SR&ED Tax Credit program.
It’s always exciting and positive to see the government put so much emphasis on fostering innovation in Canada. We just hope this speech is not a sign that the SR&ED program will be seen as an afterthought in the future, rather than a significant benefit for those in the manufacturing and R&D sector.