SR&ED claims encompass more than just lab work, reports, and research – in fact, improvements to products, new processes, analytics, and testing all fall under the blanket of SR&ED and can be claimed for tax credits.
One of the most sought-after sectors eligible for SR&ED claims is the ever-developing cannabis industry. Since it’s still in its infancy in Canada, research related to the cannabis industry can be scarce, yet it is very much needed. If your cannabis-related corporation has spent time developing a new product, procedure, or technology that targets demands in the medical or recreational cannabis sector, you could receive a refund for your SR&ED-eligible work. You can claim employee time and materials wasted associated with work in these areas—regardless of whether your project goals were achieved or not.
New research and development in the science of cannabis cultivation and processing (eg: growing, harvesting, storage) holds a lot of SR&ED potential. Research to address pest control and disease or fungal issues can be SR&ED eligible, even if the related experimentation was not entirely successful. You may have SR&ED-eligible credits in your work to optimize growth methods or bridge relationships between growing conditions and harvest yield which can be reinvested into your business.
The high demand for all types of medicinal and recreational cannabis products (including edibles, skincare, supplements, and topical applications) and public interest across Canada have created greater demand for the development of new methods and processes. Processes do not need to be high-tech or “rocket science” to be SR&ED eligible – activities as simple as trimming practices, designing and creating sustainable packaging, or improving shelf-life always require improvement and may be eligible.
Environmental sustainability is also a hot topic, not only in the cannabis industry but across many sectors. If your company or cultivation farm is applying sustainable initiatives in a way that would not be considered standard, we can help connect the SR&ED dots to maximize your claims and screen out potential errors and issues self-applicants often make before the claim is reviewed by the CRA. As well, improving day-to-day safety monitoring and implementation protocols have numerous opportunities for SR&ED success!
Our experienced agriculture and cannabis consultants support you throughout the claims process and are hands-on with the heavy lifting of preparing your claim. Consultants are matched with claims based on their industry-specific expertise and applied knowledge. They know which questions to ask and how to present your work to increase your chances of receiving a refund. This support is why SR&ED Unlimited maintains a proven track record of successful claims. It’s our job to make SR&ED as easy for you as possible.