You have until December 31, 2013 to purchase and ensure new equipment is available for use if you want to claim SR&ED tax credits on this equipment. Following this date, equipment purchases will no longer be eligible for SR&ED tax credits.
Salaries, materials consumed, materials transformed, contract payments, and overhead will remain eligible, but at a reduced rate of 15% instead of 20% for non-Canadian-controlled private corporations (the enhanced rate for Canadian-controlled private corporation will remain at 35%). As well, the prescribed proxy amount will be reduced to 55% of direct labor costs from 60% starting January 1, 2014 for all claimants.
It may be time to do some last minute Christmas shopping, if you want to benefit from the current SR&ED tax credit rules.
How R&D Partners Can Help
If you have questions or comments about these tax credits, please do not hesitate to contact Sahar Ansary at 1-800-500-7733 for more information.