Changes to the SR&ED Program recommended by the Jenkins Panel

Recommendations regarding the SR&ED program if adopted by the federal government would be slowly phased in. The most significant recommendations are to (i) restrict CCPC claims to the labour component of R&D, (ii) reduce the refundable portion of the claim over time and (iii) to allow the CRA to provide pre-claim approval – we like this one especially.

Restricting claims to the labour component alone means that salaries and wages, contractor labour costs and the proxy overhead would continue to be eligible expenses. Costs incurred for materials and equipment would no longer be eligible however the panel recommends that the percentage of labour credited be increased above the 35% rate currently, to offset this change. So really, most CCPCs may be unaffected by this change. Read more »