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Scientific Research and Experimental Development (SR&ED) Program – New Rates

posted Jan 9, 2013, 6:13 PM by Margaret Lin CPA, CGA, CFP

For taxation years that end after 2013, the general rate for SR&ED ITCs (investment tax credit) will decrease from 20% to 15%. The rate used to calculate the prescribed proxy amount will decrease from 65% to 60% for the 2013 calendar year, and to 55% for 2014 and later calendar years.


When part of the taxation year of a business is in 2013 and part is in 2014, the decrease will be prorated so that it only applies for the latter part of the taxation year.


For expenses incurred after 2013, the capital expenses will be removed from the base of eligible expenditures for the purpose of the calculation of SR&ED tax incentives.