AEM Advocates for Canadian Research Tax Changes

Share:

1/27/2020

AEMAEM 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 Unfortunately, this document was withdrawn in 2010, the practical result of which was a lack of information about how to apply for and consider the merits of the SR&ED application when it comes to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.

Subscribe to the AEM Industry Advisor for more AEM news and updates.

Advocacy & Legislation, AEM Updates

For more AEM news and updates, subscribe to the AEM Industry Advisor.

Related Articles

Texas Looks to Stay Competitive with Updated R&D Tax Structure

As an industry,equipment manufacturing is capital intensive, has a high R&D to output ratio, a high R&D to employment ratio, and offers high wages on average to employees...

AEM Experts Explain: The Regulatory Landscape for 2025 and Beyond

The regulatory and compliance landscape is changing. There is a flurry of state-level activity around public health issues and autonomy. Frustrations are mounting over...

Attention AEM Members: Exclusive Webinar to Tackle Tariff Impacts and International Trade Risks

The impacts of tariffsand how to mitigate their effects on international trade are the focus of a special AEM Member EducationWebinarset for early next week.Join AEM and...

California Sees Concerning Emissions Legislation

It shouldn’t be a surprise to anyone that during the early stages of California’s 2025 legislative session, the AEM State Affairs team is closely following two concerning pieces...

Texas Legislature Tackles Workforce

In all business sectors in the United States, it has become harder to keep and retain skilled talent. It is no surprise that workforce is a common concern for equipment...

View all Advocacy & Legislation