SRED (full name is the Scientific Research and Experimental Development Program) is a federal Canadian government tax incentive program for businesses and individuals. The SRED Canada program is operated by the Canadian Revenue Agency. This program was created in order to promote scientific and technological work and innovation by Canadian people and businesses. It is the largest contributor to scientific research and development by the nation\’s government.

As stated previously, it was developed by the Canadian government to promote scientific and technological innovation in the country. The tax program has been devised and implemented in order to encourage growth in those fields, implementing it in the form of more innovation and more human and capital investment. It is also meant to encourage direct foreign investment into the country by outside companies and individuals.

The incentive is not just for large corporations. It is meant to benefit companies of all sizes, even individuals. Companies and people that are eligible for this program can receive tax breaks from the Revenue Agency in the form of cash refunds or tax deductions.

The amount of the refunds and/or deductions is calculated by the expenditure of the firm or individual in Canada. For instance, a company could receive a cash refund on the cost of equipment that they purchased in that tax year. However, it is not easy to be able to qualify for this tax break because not just any company or individual can claim this.

To be eligible for the incentive, the individual or firm ought to have done work in areas of science and technology, it cannot be on just anything. For example, research done in the humanities is not eligible for this break. Also, businesses in marketing and sales do not qualify.

Research work does qualify. However, only research that was done within the field of science and technology can make a claim for a tax deduction or refund. And, the research should have been used to create knowledge.

As previously mentioned, the Scientific Research and Experimental Development Program is a crucial program for scientific and technological research and development within the country. This is because it attracts foreign companies in these fields to establish their operations there. This is an excellent way to attract foreign direct investment into the country. The program is successful because business owners and companies are attracted by tax incentives when they know that they can qualify for them.

However, there are some individuals and experts who are not proponents of this tax program. They argue that, it is not very successful as the World Economic Forum has recently rated Canada very low compared to other scientific and technological innovative countries. But, those who are positive about it argue that the SRED Canada program does work because to date the Canadian government has rewarded scientific and technological innovation at about 4 billion dollars per annum. This has been since the program first began in the late 1990\’s. Proponents also argue that it encourages entrepreneurship because 75 percent of the breaks have been awarded to small businesses.

A SR&ED tax credits program allow you to get the financing it needs in order to perpetuate innovation in your business. Speak to a SR&ED representative for more information.

A SR&ED tax credits program allow you to get the financing it needs in order to perpetuate innovation in your business. Speak to a SR&ED representative for more information. For details visit http://www.sredone.ca/ .

Author Bio: A SR&ED tax credits program allow you to get the financing it needs in order to perpetuate innovation in your business. Speak to a SR&ED representative for more information.

Category: Business
Keywords: Business,science,government,taxes,credits,finance,research,society,reference,technology,internet