Nova Scotia Business Inc.

For more information, please contact:

Brenda Baker
Tel: 902.424.5054
Fax: 902.424.0664
1.877.297.2124 (in Nova Scotia)
1.800.260.6682 (in North America)
Email: gov.ns.ca

The SR&ED tax credit program at both the Provincial and Federal level is intended to reward companies who do the following:  

• Attempt to overcome a technical uncertainty;
•  Attempt to advance technology while overcoming the uncertainty;
•  Make sure that qualified personnel supervise this scientific process.

The program is not intended to only reward research in its pure form (e.g. basic research in a laboratory).  SR&ED can include such efforts as attempting to solve manufacturing problems and developing new products and processes. The key is the attempt to advance technology.

Am I Eligible for SR&ED Tax Credits?
To be eligible for a SR&ED tax credit, the claimant must be carrying on a business in Canada. The SR&ED activity must be related to that business and must be performed in Canada. Finally, the candidate must be entitled to use this SR&ED in its business.

If these basic requirements are met, the candidate’s activities must then be assessed to determine whether they qualify as SR&ED as defined in the Income Tax Act of Canada.  

The Claiming Process
The SR&ED tax program application process requires the applicant to complete prescribed forms as part of its annual tax return filing for projects completed throughout the year, rather than as a request for funding to support upcoming projects.