SR&ED tax credits for construction
The Canadian construction industry is turning problem solving into profit
The much-anticipated innovation revolution in construction is gaining momentum with every passing day, especially with the growth of modern methods of construction and digital technologies. The industry now has everything from modular systems and volumetric construction to digital tools such as BIM to help boost productivity, quality, and safety.
With the sector taking strides to embrace these emerging technologies and methods, the drive to innovate has taken center stage. But innovation does not just come from the adoption of technology. On the contrary, technology is an enabler and not the sole driver for innovation. Whether it is incremental improvements that increase efficiency, an exciting new product, a vital process overhaul that steps up productivity, or just overcoming technical challenges, all can all be accurately termed innovation. But what if we change our mindset on how innovative the industry is, recognize the pioneering work taking place, and get rewarded for it in the process?
That is precisely why the Canadian Construction Association and Invennt, the leading specialist management consultancy for construction, have partnered to encourage Canadian contractors and engineers to avail of government initiatives designed to incentivize innovation.
Despite perceptions in the sector, most Canadian construction businesses with self-delivery and engineering design capabilities are eligible for investment tax credits offered by the federal government. These tax credits are payable against costs incurred during research, experimentation, and testing into new methods, materials, and solutions that overcome engineering challenges.
The tax credit in question is known as the Scientific the Research and Experimental Development Credit (SR&ED) and construction claims account for just 0.7% of the total despite the industry accounting for 7.5% of Canadian GDP. Closing this gap could have a transformative change on the industry, enabling businesses to reinvest and recognize their ground-breaking contribution to Canadian innovation.
Businesses that employ qualified professionals to overcome technical challenges should reach out to Sheldon West to book a free exploratory review at no obligation to determine the potential scale of their SR&ED ITC claim or consult our free eligibility checker tool.
Sheldon West, VP Business Development
Phone: +1 (647) 239-9872
Email: [email protected]