Calculate Your Incentive
A typical SR&ED claim for an SR&ED project could look similar to this:
- $100,000 Total Salaries and Wages
- $55,000 Overhead Proxy @ 55% (automatically added to the claim)
- $10,000 Subcontractors (80% of expenditure is eligible)
- $10,000 Materials
- $173,000 Total Eligible Expenditures will get you a
- $17,300 10% up to 30% Provincial Investment Tax Credit*
- $23,655 SR&ED tax credit @ 15% Federal, or
- $55,195 SR&ED tax credit @ 35% Federal
The total tax credit ranges from $40,955 to $72,495 depending on the company’s corporate status. This shows with out-of-pocket expenses of $120,000 you could get back over 60% of your money. If you only claim labour expenses, you could receive a refund of 64.3% of your costs.