SR&ED for the MANUFACTURING Industry

THE ARCK ADVANTAGE | SRED CLAIMS THROUGH FORENSIC ANALYSIS

The manufacturing sector in Canada has long been renowned for its competitive nature. Unsympathetic economic conditions, erratic currency fluctuations and harsh international trade have dampened profit margins in this beleaguered industry. To gain an edge, industry leaders constantly search for new ways to improve 'time-to-market', cut costs and provide better offerings to their customer. Manufacturers must also make necessary investments in quality compliance (ISO <  GMP) and continuous improvement programs to avoid the risk of product recalls and the cost of excess scrap.

Desired results in these areas are typically achieved through systematic R&D, including regular enhancements to products, processes, materials and systems. A significant portion of these activities qualify for tax credits or cash refunds under the Scientific Research & Experimental Development (SR&ED) program. Despite this, manufacturers face several misconceptions about SR&ED eligible expenditures. Many organizations have been discouraged from participating or have simply failed to claim a significant portion of qualified work. At ARCK, we help eligible companies uncover, claim and maximize their SR&ED tax credits.

1

Technical Advancement:

What did you do that was above and beyond standard knowledge within your field?

2

Technical Obstacles:

What was the obstacle that had to be overcome, or what was the concern that couldn’t be solved based on current industry knowledge? In other words, what were the challenges encountered?

3

Technical Content:
(Systematic Investigation)Is the work evident of investigation, experimentation, and/or analysis, by qualified personnel?

​Industries that Qualify for SR&ED

  • Aeronautics Aerospace
  • Automotive Manufacturing
  • Chemical Manufacturing
  • Electronics
  • Food & Beverage
  • Furniture Manufacturing
  • Manufacturing 
  • Paper & Packaging
  • Pharmaceutical
  • Software
  • Telecommunications
  • Tool and Dye
  • Transportation
  • Waste Management

Manufacturing companies that choose to take advantage of the program stand to recover a considerable amount of R&D related expenditures. Despite this, many find SR&ED legislation difficult to interpret a somewhat vague. It is not uncommon for companies to experience great difficulty in determining which of the activities are eligible, particularly projects that take place outside of dedicated R&D facilities. While industry leaders understand the competitive advantage SR&ED tax credits can provide, most companies lack the requisite knowledge, experience and confidence to file successful and compliant claims.

Typical Unclaimed SR&ED Expenditures

 

  • Design or material changes (e.g. to decrease production costs or 'wear and tear'

  • Process or design changes intended to increase product quality and/or continuous improvement

  • Systematic attempts to improve cycle times, energy consumption or range of motion

  • Changes to software or IT systems

  • Implemented process changes intended to improve yields

  • Improvements, enhancements or modifications to equipment that go beyond original specifications

  • Scale up to production issues

  • integration of new equipment into a production line

Contact us for a FREE consultation and we will help you determine what's eligible. 

Call 1(905)604-6156 or fill out this form below:

2750 14th Avenue, Suite 201
Markham, ON Canada

 

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© 2013-2020 by ARCK Innovative Consulting Corporation.  SR&ED Tax Credit Consultants.  SR&ED Toronto.