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Maximize Returns with SR&ED Consulting for Engineering Firms

Engineering firms contribute significantly to the technological advancement of various sectors through groundbreaking innovations, custom solutions, and problem-solving methodologies. To support this continuous development, the Canadian government has established the Scientific Research & Experimental Development (SR&ED) program, providing attractive SR&ED tax incentives. However, navigating through the eligibility requirements and claim procedures can be challenging. At G6 Consulting, we specialize in offering comprehensive SR&ED Consulting for engineering firms, ensuring accurate applications, compliance, and maximization of tax credit benefits.

Understanding SR&ED

The Scientific Research & Experimental Development (SR&ED) program is a federal tax incentive aimed at encouraging Canadian businesses to perform R&D within the country. Through this initiative, businesses can receive both refundable and non-refundable tax credits for eligible R&D activities.

Refundable tax credits can be translated into cash refunds, particularly helpful for startups and small to medium-sized businesses that might have little to no taxable income. On the other hand, non-refundable tax credits can be used to decrease taxable income, offering significant savings to profitable companies.

The opportunity to receive these tax credits provides a strong financial incentive, enabling businesses to fund their R&D projects more extensively. Ultimately, the SR&ED program offers businesses the financial freedom to push the boundaries of innovation, explore new ideas, and contribute positively to Canada’s economic growth and technological competitiveness.

SR&ED in the Engineering Industry

Engineering firms are at the forefront of innovation, utilizing their technical expertise to create unique solutions and advancements in various fields. These activities often extend beyond conventional R&D, making it essential for engineering firms to identify eligible SR&ED projects and reap the benefits of tax incentives.

Qualifying SR&ED activities in the engineering industry may include:

  • Developing eco-friendly building materials or construction techniques
  • Designing and optimizing energy-efficient HVAC systems
  • Innovating advanced manufacturing processes or automation technologies
  • Developing new software tools or applications to improve engineering operations

SR&ED Tax Credits for Engineering Firms

Engineering firms can claim two types of SR&ED Investment Tax Credits (ITCs):

  • Refundable tax credits: These can be converted to cash refunds, benefiting organizations with low or no taxable income.
  • Non-refundable tax credits: These can be applied to reduce taxable income.

Canadian-controlled private corporations (CCPCs) can claim a 35% refundable ITC on the first $3 million of eligible expenditures and a 15% non-refundable ITC on any additional expenditure.

On the other hand, non-CCPCs, including foreign-controlled or public corporations, can earn a 15% non-refundable ITC on all qualifying expenditures.

Key Considerations for Engineering Firms

To ensure maximum SR&ED benefits, Engineering firms need to understand the specific eligibility criteria and requirements. Key factors to consider include:

  • Identifying technological uncertainties that require experimentation, analysis, or research to resolve
  • Demonstrating that the work contributes to the advancement of technical knowledge within the engineering field
  • Maintaining adequate documentation to support SR&ED claims, including project plans, records of experiments, and technical reports

G6 Consulting: Expert SR&ED Partner for Engineering Firms

At G6 Consulting, we take pride in guiding engineering firms through the complexities of the SR&ED program. Our in-depth understanding of the engineering sector, coupled with our SR&ED expertise, ensures accurate identification of eligible projects and maximization of tax credit opportunities.

Empower your engineering firm to thrive on innovation by leveraging the SR&ED program with G6 Consulting’s professional assistance. Contact us today to learn more about our specialized SR&ED Consulting for engineering firms. 

Get your SR&ED done right with G6 Consulting Inc – Canada’s R&D Tax Credit Experts!

G6 Consulting can work with you to build your claim, co-ordinate with your accountant, submit your claim and get you your cheque. No cost until you get paid

Check out our SR&ED overview page to learn more about SR&ED and how to qualify

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