Federal Budget 2008 - Changes to the Research and Development Tax Credit

By: Rob Parker

One of the biggest advantages of owning a Canadian company that specializes in furthering knowledge in your field is that you probably qualify for the scientific research and experimental development tax incentive program. Obviously, any country stands to gain if a specific invention, breakthrough, or improvement is developed there; not only will it gain face internationally, but the process will probably pay dividends in terms of attracting like minded individuals and the further development of business. It is therefore in the best interests of the country to encourage this type of development among their businesses.

The Canadian federal government in the 1980s first acknowledged this fact, and today it is the country's largest government program in support of industrial research and development. Every year the program receives over 11,000 claims totalling around 2 billion dollars.

Part of the appeal of the program is that it provides almost a double coverage against taxes for small and start up sized companies. Expenditures incurred when companies engage in research and development are already deducted against company revenue, but under the research and development tax credit program the amount of income taxes payable are actually reduced depending on the research conducted. This may take the form of cash returns, credits, or both.

The federal budget introduced by the Conservative government in 2008 continues to demonstrate Canada's ongoing commitment to the developments of research and technology in the area of business. Under the budget, the scientific research and experimental development tax incentive program was actually improved in several ways. The first was through an increase in the amounts that can be claimed by a business that has engaged in research and development. The federal budget also eased the financial and organizational operations of small and medium sized businesses that engage in development and research by reducing the record keeping requirements both for automobile expenses and taxable benefits.

Specifically, the changes made to the program include:

A 35% tax credit on the first $2 million of qualified expenditures in the area of R&D for small Canadian controlled private corporations

An expenditure limit increase from $2 million to $3 million

These changes, along with a few more, went into effect for tax years ending in February of 2008 and after. If you own a business that engages in R&D, it will definitely be to your benefit to understand the ways in which the program can reduce your tax burden.

Article Source: http://www.articlesnatch.com

About the Author:
For those companies interested in applying for a research and development tax credit, hiring a firm with a proven track record for identifying, preparing these claims should be top priority.

Tags: business, r & d tax credits

Print |

Ezine Ready |

Please Rate this Article

Recent Business Articles

Europe travel: Explore the most beautiful continent in the world By: Jason Born - If you are planning your vacations then a tour to Europe would be the right choice. It is the most beautiful continent in the world and for exactly this reason one should visit this lovely continent. The established fact about Europe came out in the year 2004 when World Tourism Organization declared it as the biggest travel spot in the world. In this year 54% of the world’s travel business came from Europe only.
The ONE Self-Sabotaging Thing You Do Every Day That Keeps You From Making 7-Figures In Your Business By: Fabienne Fredrickson - QUOTE: "Most people confuse wishing and wanting with pursuing. You must place your trust in ACTION." - Price Pritchett I've been hearing this one question a lot recently: "Fabienne, what did you actually DO to multiply your income so quickly? How did you get to a million and can I do it too?
Google Adsense-"Explode Your Google Adsense and Affiliate Commissions through Niche Blog Content Sit By: Manpreet Kaur b - The overwhelming majority of the population has no clue what Google Adsense is and doesn't understand that Google and the site owner make money when they click on an ad. Now, let’s say that from all of the people visiting your site from the link embedded in your articles’ resourced boxes, only one person a day actually clicks on an Adsense ad.
Tags: business, adsense google, adsense google, internet, adsense
How To Choose the Best Blogging Site By: PARSHANT PURI - Blogging is very popular today. The two main blogging platforms are blogger and Wordpress. The platform that will work best for you depends on many factors. Learning the advantages and disadvantages of each will help you make that decision. Blogger allows you to put up a blog quickly and easily. There is no need for you to have a website or a domain name. Blogger hosts the blog for you.
Tags: business, blogging, blog, make money with blogging, internet
Opportunity Knocks While Baby Sleeps: Stay-at-Home Moms Earn Money with Online Jobs By: Woody Maxim - As the economy continues to shift and the price of everything from gas to food continues to rise, many full-time moms are trying to figure out what they can do to improve their family's financial picture, without compromising the time they spend with their children. For many the Internet is the answer. Moms who are confident surfing the World Wide Web are discovering that the Internet is a virtual gold mine offering endless income earning possibilities.
Tags: business, mlm email leads, mlm networking marketing lead, mlm advertising, work from home uk
Business And Tax Havens Have A Natural Affinity For Each Other By: Ramapati Singhania - When organizations think of doing business offshore they take into consideration many factors before taking the final decision. However one factor that is always foremost in their agenda is the tax policy prevalent in the offshore destinations under focus. Of course, countries with low trading taxes are the most preferred. As such business and tax havens are co-related and plays an important role in the choice of offshore destinations for business purposes.
Tags: business, business and tax havens, book guide haven offshore tax, guide haven offshore tax ultimate
Everything you Need to Know about Voice Recorders By: Josh Newsbomsdy - Voice recorders are used every day by journalists, students and many other kinds of professionals. Voice recorders are used to record voice. Recently voice recorders have made the transition to digital technology and come in many different sizes colours and manufacturers. Voice recorders are expected to continue their education in order to keep their certification current. Voice recorders are ideal for quick note taking or dictation in the office and the classroom.
Tags: business, voice recorders, olympus voice recorders, mp3 players, digital phone recorders
Want To Start Your Home Business With Google Adwords By: gurpreet singhg - The object to successful advertising is to find method of conveying your information, to as many people as possible, while keeping the cost on the advertising low to begin with. This is the easiest way to generate traffic, and retain your profits. Google Adwords is a great method of getting both of these objectives done and making your site successful.
Tags: business, adsense, google adsense, internet, adsense earning
Used and New Bobcat Skid Steers: The Difference between a New and a Used Bobcat Skid Steer? By: Irina Mahanachand - Bobcat skid steer is one of the most dependable compact equipment. You are assured that doing construction work can be as easy as what you think. Because the equipment can do multitasking, you may not even have to employ as much employee when you have with you even a used Bobcat. There are many more jobs done coming from one machine alone.
Tags: business, bobcat skid steer, used bobcat
Strategies Regarding Adsense earnings By: CODY JAKES - Google Adsense is a program that allows businesses to advertise on other websites. They business only pays the host website when a consumer clicks on the link to take them to their website. This is a very effective way of advertising because of the millions of people who access the internet every day. It is also a low cost marketing method that businesses of all sizes can benefit from.
Tags: business, adsense, business, marketing, internet

Comments

Search Ebay

Still can't find what you are looking for? Search for it!

ArticleSnatch Authors:

Member Login Sign Up Submit Articles FAQ Submission Guidelines Top Authors

For Publishers:

For Everyone:

Blog About Us Link to Us Contact Us New Stuff Link Directory Privacy Policy Sitemap Resources

Our Sites:

Free Magazines Book Your Hotel Stay Free MySpace Tools Massive Video Collection

Stay and Watch a Video:

Click here to submit your free, permanent ads to TheFreeAdForum.com!

Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.