Scientific Research and Experimental Development
The Scientific Research and Experimental Development (SRED) Program uses tax incentives to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada.
According to the Government of Canada1:
SRED is undertaken for the advancement of scientific knowledge, or for the purpose of achieving technological advancement aimed at creating new, or improving existing, materials, devices, products, or processes including incremental improvements. The systematic investigation or search carried out in a field of science or technology by means of experiment or analysis must be seeking scientific or technological advancement for it to be SR&ED. Work for the advancement of scientific knowledge or for the purpose of technological advancement implies an attempt to resolve what is called scientific uncertainty or technological uncertainty. Basically, the advancement is the targeted outcome of the SR&ED work while the uncertainty is the impetus for the SR&ED work. Therefore, an attempt to achieve advancement is an attempt to resolve uncertainty. Depending on the purpose of the work, SRED can involve: basic research, applied research, or experimental development.
More importantly, SRED does not include: market research or sales promotion, quality control or routine testing of materials, devices, products or processes, research in the social sciences or the humanities, prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas, the commercial production of a new or improved material, device or product or the commercial use of a new or improved process, style changes or routine data collection.
FirstQuintile Can Help with your SRED Project
Not only can we prepare your SRED claim, accounting and auditing, but we can also perform SRED or manage your project on your behalf. Reach out to us today to lean more!