Government bodies the world over are taking more initiative in dealing with substances they feel are potentially harmful to human health. The Canadian Government has been especially decisive with these initiatives, and recently announced the implementation of a new Chemicals Management plan that includes new protective measures to ensure that chemicals are managed properly. The new plan involves a very aggressive timetable and a highly ambitious and accelerated evaluation process of 500 substances.
Any companies who had to deal with prior bans and initiatives like CMP & ROHS can appreciate the speed at which policy changes impact operations. For industry, this presents a massive challenge as companies are forced to replace, remove, and re-work their products and processes in order to come into compliance with these new standards. Many companies, especially within the manufacturing sector, will be hard-hit, but in order to comply with the new regulations, they must adapt.
Fortunately, the SR&ED program can be especially applicable when companies are forced to change or alter their processes or materials to come into compliance with new government regulations. Such changes often require experimental development.
Attached to the Tax Act, the SR&ED program provides financial incentives to companies conducting business in Canada to carry out experimental development activities. As the most generous incentive program in the world, SR&ED can offset a significant portion of the costs associated with changing established products and/or processes in order to meet new regulatory requirements.
Understanding that these changes are required, companies can be pro-active in planning their SR&ED expenditures, and documenting the processes in order to claim these required adaptations. This is where companies like BeneFACT Consulting can give valuable input on how to structure the process in order to ensure that their R&D projects are claimable as SR&ED. The SR&ED Program supports attempts to create or improve materials, devices, products, or processes only when there’s evidence of systematic investigation attempting a technological advancement.
To find out more about how the new Chemical Management Plan can affect your business and your R&D claims, contact a SR&ED service provider in your area.