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The Scientific Research and Experimental Development (SR&ED) program applies to enterprises engaged in creating, enhancing, and innovating manufacturing processes and technology in Canada’s manufacturing sector. If manufacturers engage in eligible research and development activities that satisfy the program’s requirements, they may be eligible for SR&ED tax credits. Here are a few instances of SR&ED projects in the manufacturing industry:

Process Innovation: Enhancing current manufacturing processes or researching and creating new ones to boost productivity, efficiency, and waste reduction.

Product Development: Creating innovative products or enhancing current ones using cutting-edge manufacturing processes and materials.

Automation and Robotics: Robotics and automation systems are being researched and put into use to optimize industrial processes.

Material Research: Examining and testing new materials or material blends to enhance product performance or lower production costs.

Quality Control and Assurance: Establishing and executing quality control procedures and systems to guarantee the consistency and dependability of the product.

Sustainability and Environmental Impact: Conduct research to introduce sustainable and ecologically friendly production methods.

To support their SR&ED claim, manufacturing enterprises should keep thorough records and documentation of their research and development operations. An effective and legal SR&ED claim can be created by working with seasoned SR&ED consultants or tax experts who are familiar with the manufacturing sector.

To evaluate your circumstances and decide whether your manufacturing activities are eligible for SR&ED tax credits, as with any tax-related topic, it’s important to speak with a skilled tax practitioner. Each claim is assessed individually, and expert advice can assist make sure that your claim is properly presented and maximized for success.

Related Information


The maximum SR&ED refund for the provincial level varies by province. There are two provinces with a maximum refundable SR&ED tax credit: British Columbia: CAD $300,000 Newfoundland and Labrador: CAD $188,348 All other provinces and territories offer...

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