In the wake of the federal government’s 2024 budget, the overwhelming focus for the tech and innovation sector has been on the increase to the capital gains inclusion rate. But the budget also included a very positive announcement for innovation –the commitment to explore extending enhanced SR&ED tax credits to public companies, which was followed by the release of a consultation on that very question.
The Scientific Research and Experimental Development tax incentive program –or SR&ED– is Canada’s cornerstone innovation program, providing up to $4 billion in tax incentives to companies who engage in R&D activities in Canada. It’s a critical support to innovative companies, in particular for early stage innovation companies.
As currently constructed, there are two core parts to the SR&ED program. The first is a 15% non-refundable portion, which is available to all companies. The second portion is a 35%…
