The Canadian government supports businesses in their research and development programs, in an effort to help their growth and, at the same time, maintain the country’s economy healthy. With the scientific research and experimental development program (SRED), administered by the Canada Revenue Agency (CRA), it provides businesses with a considerable financial support. To date, it is the greatest source of support from the federal government in this area.
It is interesting to know that tax credit financing is available to you, if you meet the eligibility criteria.
Basic parameters to determine eligibility
First, it is important to meet the norms of the Canada Revenue Agency (CRA) and/or the Revenu Québec Agency (ARQ). As well, one must be eligible to refundable tax credits, such as the scientific research and experimental development program tax credits, among others.
The movie business benefits from the film or video production services tax credit program (PSTC), enabling employment growth in this field, thus encouraging Canadian or foreign producers to solicit the services of Canadians. It consists of a refundable tax credit offered to the film production company, with a value of 16% of the labour expenditure. One must deduct any aid amount related to production.
The multimedia sector benefits from a program that can help it generate the production of multimedia titles in Quebec. It is possible to obtain up to 37,5% of eligible expenses in Quebec. This program is intended to a variety of products such as products for commercial exploitation purposes, published on an electronic medium and allowing interactivity. Among the eligible expenses, we include the employees salaries, as well as the amounts paid to a subcontractor having a relationship with the producer for the achievement of the work, whose place of business is located in Quebec.
The mining exploration industry benefits from a program related to resources. It is a direct aid mechanism for mining companies that engage in exploration expenses on the Quebec territory. The conditions include that the eligible companies must have an office in Quebec and must operate their business in Quebec. They must claim their expenses at the time they produce both their federal and provincial income tax statements. Moreover, the eligible expenses must have already been paid at the time of claiming the tax credit.
The available tax credit for the maritime sector encourages employment creation in certain coastal regions such as Bas St-Laurent, Côte Nord, Gaspésie and the Iles-de-la-Madeleine. One may obtain a credit for sea products transformation, marine biotechnology, wind energy production, cultivation of plants and animal breeding, and for the commercialization of a product or of a specialized equipment.
If you work in a sector that could be eligible for tax credits, find out more by contacting the government. You could benefit from considerable amounts that will help you grow your business.
By Martin Duguay