Research and Development Tax Credit

Overview of the Research and Development Tax Credit program:

This is a fully refundable tax credit for New Brunswick corporations to help fund their research activity. It is applied to Scientific Research and Experimental Development (SR&ED) expenditures as defined by the Federal Income Tax Act. The credit is administered by the Canada Revenue Agency (CRA).

Benefits of the Research and Development Tax Credit program:

• Fully refundable R&D tax credit at the rate of 15% of eligible expenditures.

Eligibility criteria of the Research and Development Tax Credit program:

• Eligibility
• Eligible expenditures:
• Experimental development - This is the work done to achieve technological advancement to create, or improve, new materials, devices, products, or processes. Most SR&ED claims involve experimental development.
• Applied research - This is work done to advance scientific knowledge with a specific practical application in view.
• Basic research - This is work done to advance scientific knowledge without a specific practical application in view.
• Support work - This is work that directly supports, and is commensurate with, the needs of experimental development, applied research, and basic research. This includes only the following eight specific types of work: engineering; design; operations research; mathematical analysis; computer programming; data collection; testing, and psychological research.
• Eligible current and capital SR&ED expenditures include wages and salaries, materials, equipment, overhead costs and other expenditures incurred as a result of SR&ED initiatives.