Research and Development Tax Credits for Chemical Industries

On the off chance that you are running an operating business in the field of Chemical industry and are energetically occupied with innovative work of your products and processes you may meet all requirements for R&D Tax credits. This is one of the Federal Government programs and is known as the Scientific Research and Experimental Development(SR&ED). The program is intended to energize all organizations in Canada to perform R&D which would help create new or enhanced products or processes. Organizations have the capacity to utilize the liberal expense motivators through the R&D Tax Credit program to further fiscally help their R&D ventures.

Despite the fact that the R&D tax credits are implied for all organizations, you need to qualify by gathering the program’s criteria. To meet the criteria your undertakings ought to be either in basic or applied research; or experimental development.

Examples of eligible projects for Research and Development Tax Credits  (Chemical industries):

• Chemical reaction technology, Electrochemistry, Distillation design

• Chemical Design, Process Modelling & Synthesis

• Formulation Chemistry for applications in numerous industries (cleaning, beauty, etc)

• Metallurgy,Semiconductors, Ceramics, Plastics, Composites, Paper & Wood

• Biochemical, Bio-catalysis, Fermentation, Bio-products, Biomaterials

• Nano materials & Processes

• Formulation development for coating, catalyzers, additives

Through the years it has been recognized that a few corporations in Chemical Industry don’t consider that they are qualified for R&D tax credits. The truth is that you can recapture a considerable portion of your eligible SR&ED expenditures such as  salary and wages, materials, subcontractors as well as some overheads in the form of cash or tax credits. For Canadian Controlled Private Corporations (CCPCs) the refundable tax credit is 35% up to the first $3 million of eligible expenditures and 20% on the excess expenditure amounts. Non-CCPC organizations can acquire non-refundable tax credits of 20% of the eligible expenditures if the SR&ED has been performed in Canada.

Kelid™ has years of experience helping Chemical industries dig up eligible SR&ED projects. Take advantage of our 30 minutes free no obligation consulting service to determine eligibility of your projects and associated expenditures. We strongly recommend you to check out our online assessment and calculator tools to estimate your R&D tax credits.