More on the Federal Budget 2019
Easier Access to Scientific Research & Experimental Development Program (SRED)
- Canadian controlled private corporations (CCPCs) are entitled to a very generous refundable tax credit of 35% on qualifying annual SRED expenditures, up to a maximum of $3 million of expenditures.
- A CCPC is a private corporation, not public which is traded on the stock exchange, and is controlled by a Canadian resident. A Canadian resident for tax purposes is a question of fact based on residential ties.
- Before the federal budget, the SRED expenditure limit and resulting tax credit were reduced the higher the business income.
- After the budget, a CCPC can get this credit irrespective of income.
- This change also bodes well for companies doing research and development work for climate change.
100% Tax Deduction on New Zero Emission Vehicles up to $55,000