Canada is leading the whole globe in clean technologies and renewable energies with 100 clean energy technology companies currently working to make this world a better place to live. With focus on energy efficient solutions, clean technology initiatives work environmentally-conscious and low-carbon solutions. SR&ED are tax incentives which encourage clean technology and renewable energies companies to participate and invest in research and development. With increased demand of clean technologies, the need of R&D tax credits is obvious for every emerging company in the market.
Clean Technology is a broad term which includes recycling, renewable energy (solar power, wind power, hydropower, bio-fuels, and biomass), electric motors, information technology, green transportation, green chemistry, lighting, and many other appliances that are now more energy efficient.
Canada also is not behind in taking radical steps to inject Canadian R&D Tax Credits program to encourage companies invest in clean technologies. The Government has introduced Scientific Research and Experimental Development (SR&ED) program to financially support companies taking part in R&D in clean technologies. The program not only provides fund to the companies, but also increase companies’ return in investment. All Canadian Controlled Private Corporations (CCPC) are eligible to apply for Canadian R&D Rebates. You don’t have to be a big corporate company. You don’t have to conduct a lot of successful research. If you have attempted a scientific project which remained unsuccessful, you can still apply for R&D tax credits and take advantage of research and development funding.
- Those companies that have made considerable efforts to make to reduce waste production, energy consumption and products’ environmental footprints.
- The companies having introduced non-toxic materials or started using component.
- The companies producing products which can work well with waste-to-energy initiatives.
Ontario also launched a similar program named as Feed-In-Tariff (FIT) back in 2009 to overcome the unemployment created by declination of manufacturing sector. FIT program is paying higher than the market rates for those producers who are working in renewable energy such as solar power, wind power, and biomass.
SR&ED application process does take time, but with the consultation of professionals, one can reduce the time and confusion while applying for R&D tax credits.
For further information for eligibility of your clean technology project and estimate your claim size check out SR&ED Assessment LookUP and SR&ED Fund Calculator. To take advantage of our 30min free no-obligation consulting service either contact Kelid™ or fill out the request form.