Did you know that you can recover up to $0.68 of every $1.00 in wages spent on qualified Research and Development activities? That’s a fantastic investment for your money!
Tax Credits
Are You Leaving Money On The Table?
Receiving substantial cash refunds or tax credits from the government can provide the stimulus you need to bring your company to the next level. Yet many companies that are eligible for thousands of dollars in tax credits aren’t filing for them – because they simply aren’t aware that they qualify.
We’ve listed below some information on a few major tax credits that many small and mid-size businesses should know about:
Scientific Research & Experimental Development (SR&ED) Tax Credits
SR&ED is Canada’s largest, yet most underutilized tax incentive plan. If you have invested in innovation by creating new, enhanced or technologically advanced products, processes or equipment, you may be eligible for SR&ED tax credits or a cash refund. The advances do not have to be scientific in nature – no test tubes or Petri dishes required!
You can recover up to $0.68 of every $1.00 in wages spent on qualifying SR&ED activities. Other eligible expenses under the SR&ED tax credit program include materials, equipment and machinery, sub-contractors and overhead costs.
Ontario Interactive Digital Media Tax Credits (OIDMTC)
OIDMTC is a refundable tax credit available to eligible Ontario companies that have created interactive digital media products. The primary purpose of the digital media product must be to educate, inform or entertain, and it must include at least two of (i) text, (ii) sound, and (iii) images. Common examples include DVDs, CD-ROMs, kiosks, interactive websites and digital media games.
The tax credit is calculated as up to 40% of the eligible labour, marketing and distribution expenses incurred to create interactive digital media products in Ontario – regardless of the size of the company.
Apprenticeship Training Tax Credits (ATTC)
The ATTC is an Ontario tax credit that was introduced to encourage the hiring of apprentices in the construction, industrial and manufacturing industries. It is a refundable tax credit available to employers who hire and train apprentices in certain skilled trades.
The ATTC is based on salaries and wages paid to an apprentice. Corporations can receive a tax credit of up to $10,000 per year for each qualifying apprentice, during the first 48 months of an apprenticeship program.
Applying for tax credits can be a complex matter. SBLR can help. We will work with you to determine if you qualify for the tax incentive programs and will assist you in making the actual claims. Our tax credit consulting services are typically billed on a contingency basis – so we don’t get paid unless your claim is successful!
For more information about tax credit consulting with SBLR, or to schedule a complimentary consultation, please contact:
Shawn Rosenzweig, CA – Partner
416.488.2345 x 234
Mitch Silverstein, CA – Partner
416.488.2345 x 274
Howard Lerner, CA – Partner
416.488.2345 x 222
