SR & ED

Authors of the S3M have demonstrated the eligibility of IT process improvement in many projects presented to the SR&ED program.

Software maintenance improvement can require a large investment over time. The improvement activities based on S3M can be eligible and submitted to the Scientific Research and Experimental Development (SR&ED) program. This is a Canadian federal tax incentive program is to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. The SR&ED program is the largest single source of federal government support for industrial research and development.

Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead and SR&ED contracts.

It should be noted that the Canadian Revenue Agency is responsible for administering the SR&ED program, while the Department of Finance is responsible for the legislation that governs it.


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