Until now, two criteria limited access to credit plus 35% for companies for the first $ 3 million of eligible SR & ED expenditures:
- When the taxable income is between $ 500,000 and $ 800,000
- When the taxable capital used in Canada is between $ 10M and $ 50M
In this budget, Ottawa announces that it is dropping the taxable income test to keep only the capital test.
Companies whose taxable capital does not exceed 10 million will therefore be entitled to the refundable tax credit at the rate of 35%. It will be gradually reduced for the company whose capital exceeds 10 million and ceases to apply completely when the taxable capital of the previous year reaches 50 million.
This measure will apply to taxation years ending on or after Budget Day.
Do not hesitate to contact us to validate the eligibility of your projects to the SR & ED program or to prepare your SR & ED claims.