AEM has presented a pre-Budget submission to the Minister of Finance, Bill Morneau, requesting the rules governing access to the Scientific Research and Experimental Development Tax Incentive Program (SR&ED) for equipment manufacturers be published and clarified. Over the past several decades, access to this program has been impeded as the submission process has become overly difficult, cumbersome and expensive.
A significant factor in this has been the lack of knowledge of the sector at the Canada Revenue Agency (CRA), where the particularities of the research and development process for the sector were previously acknowledged and outlined in the Income Tax Information Circular, Machinery and Equipment Industry Application Paper (94-2). Unfortunately, this document was withdrawn in 2010, the practical result of which was a lack of information about how to apply for and consider the merits of the SR&ED application when it comes to innovation in equipment manufacturing.
AEM is advocating for the CRA to update and re-issue its Machinery and Equipment Industry Application Paper (94-2) concerning the SR&ED program. This step would have significant positive impacts on members and further encourage innovation in the industry. AEM is also in contact with the Minister of National Revenue, Diane Lebouthillier, the former Chair of the House of Commons Finance Committee, Wayne Easter, and previous members of the House of Commons Agriculture Committee, such as Lloyd Longfield, to move this file forward.
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