What Makes Canada so Great for Companies Doing Research?

Canada fully supports and encourages companies to do research in the country by offering great tax incentives. Canada knows the benefits of research to its economy. The SR&ED Program (Scientific Research and Experimental Development) is the biggest tax incentive program in Canada. This tax program offers tax credits for research and development that involves advancing technology and science, as well as for creating new or improving upon current products, processes, and materials. The tax credits can be applied to taxes for the last three years or 20 years in the future.

The government of Canada focuses its time and money to promote the country itself and the benefits it offers businesses that do research and development in the country. Just in 2010, the SR&ED tax program in Canada gave out $4.5 billion in tax incentives. Big corporations get tax refund based on their income and small companies, including trusts and partnerships, get incentives totalling up to 35% of the money they spend on R&D. These tax credits can be applied to taxes the company owes or if the company owes less than the refund amount, it can get that money back and use it to grow the business further.

Companies from other countries that do research in Canada may be eligible for the SR&ED Program if they have a subsidiary of the parent company in Canada or if a subsidiary is a Canadian-controlled private corporation.

The National Research Council (NRC) is the organization set up by the government in Canada to offer support and assistance to companies doing research and development. The NRC is under the control of the Minister of Industry and both these agencies work closely with the Canadian government to regulate the SR&ED tax program.

The NRC is considered the Strategic Partner in Canadian Innovation and has more than 4,200 employees in Canada working to further its efforts. This organization offers resources and many types of assistance. As a result, Canada is among the five leading R&D performers in the world.

The NRC has been assisting companies that want to turn their ideas and concepts into new or improved goods and services. The research and development done in Canada has improved lives there and around the world.

The main priorities with regard to research and development in Canada are:

1. Improving the health of the country’s residents

2. Creating solutions to help with the energy crisis

3. Creating new environmentally friendly technologies

The NRC also promotes national initiatives that correlate with issues that affect residents of Canada every day. The SR&ED tax program offers generous tax credits that can be used in different ways to encourage innovation in Canada. The NRC sets specific goals for research and development in Canada and finds ways to work with businesses to reach these goals.