Tax Credits - Research and Development Tax Credit
This is a fully refundable tax credit for New Brunswick corporations to help fund their research activity. It is applied to Scientific Research and Experimental Development (SR&ED) expenditures as defined by the Federal Income Tax Act. The credit is administered by the Canada Revenue Agency (CRA).
Experimental development - This is the work done to achieve technological advancement to create, or improve, new materials, devices, products, or processes. Most SR&ED claims involve experimental development.
Applied research - This is work done to advance scientific knowledge with a specific practical application in view.
Basic research - This is work done to advance scientific knowledge without a specific practical application in view.
Support work - This is work that directly supports, and is commensurate with, the needs of experimental development, applied research, and basic research. This includes only the following eight specific types of work: engineering; design; operations research; mathematical analysis; computer programming; data collection; testing, and psychological research.
Eligible current and capital SR&ED expenditures include wages and salaries, materials, equipment, overhead costs and other expenditures incurred as a result of SR&ED initiatives.
For additional information, see Tax Credits - Research and Development in Related Links.
Contacts: Canada Revenue Agency 1-800-959-5525 (English) or 1-800-959-7775 (French).