SR&ED Gets Cut in the 2014–2015 Quebec Budget
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Quebec Minister of Finance Carlos J. Leitao presented the 2014–2015 Quebec Budget on June 4, 2014, focusing on Quebec’s economic recovery and the restoration of sound public finances. A number of different initiatives were announced this year but we want to focus on the Scientific Research and Experimental Development (SR&ED) program.
How does this year’s budget impact the SR&ED program?
To begin, refundable tax credit amounts for research and development (R&D) in the province dropped from 37.5% to 30%, meaning that innovative Quebec SMEs will receive 7.5% less in tax credits for their R&D activities. Meanwhile, companies carrying out bio-pharmaceutical R&D will be impacted by changes to the refundable tax credit for R&D salaries – the increase from 17.5% to 27.5% (in the rate thereof) has been eliminated for R&D salaries.
For further details on the SR&ED in the Quebec Budget (2014–2015), please visit the Ministry of Finance of Quebec website.