Last week Prime Minister Stephen Harper hinted that Ottawa will move as soon as the next federal budget to overhaul the $3.5 Billion Scientific Research and Experimental Development (SR&ED) Tax Incentive Program.
Speaking to reporters Friday in Toronto, Harper said the government will move in 2012 on a task force report that urged a major overhaul of federal research and development programs.
The report titled Innovation Canada: A Call to Action proposes that Ottawa should make the SR&ED tax credit simpler and smaller, redirecting the savings to more direct funding of business research.
Among suggested changes to the SR&ED program, the report said the credit should be limited to labour costs and that the generous refundable portion of the credit for smaller Canadian-owned companies should be reduced.
While over 20,000 companies across Canada take advantage of the SR&ED tax break, a recent Globe and Mail investigation also found widespread abuse, including bogus claims and SR&ED consultants taking more than their fair share in fees.
Most Techvibes readers are very aware of SR&ED and many will have taken advantage of the program. How do you feel about the proposed changes to the program?
Rob Lewis
Rob is the President of Techvibes Media Inc. and Editor-in-Chief of Techvibes.com.
His diverse background includes stints in International Trade Finance, Web Development, and Enterprise Software and he is a graduate of the University of British Columbia, British Columbia Institute of Technology, and Simon Fraser University.
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