August 05, 2004 -For Immediate Release- Cornwall (July 20, 2004)

The SD&G Community Futures Development Corporation (CFDC) is pleased to announce the results of the pilot project to encourage local manufacturers to file for Scientific Research and Experimental Development (SR&ED) Tax Credits.  In 2003, the SD&G CFDC offered up to $2,500 per manufacturer, to help cover professional fees associated with filing for the SR&ED Tax Credits.  In order to be eligible to receive this funding, the company must not have previously filed for SR&ED Tax Credits.  This incentive, initiated by James dePater, who is currently on secondment to the Community Ventures Capital Fund, has been a terrific success.  “The Board of Directors set aside a total of $10,000 for this project”, said Derrick Moodie, Acting Executive Director.  “This money acted as a carrot to encourage companies that have been doing research and development, to file for the tax credits that they deserve.”
The SR&ED Tax Credits are designed to offset some of the costs associated with developing new products or refining manufacturing processes.  “This does not have to be the white lab coat kind of research,” declared Moodie.  “The companies that we have worked with have been doing research and development on their manufacturing processes – making things stronger, better, faster or cheaper.”  According to Moodie; “the main problems with the SR&ED Tax Credits are that people either don’t know about them, or don’t think they are eligible to claim them.”  The SR&ED Tax Credits cover expenses such as labour, destroyed production, and overhead associated with the R&D project.  Typical R&D projects can include adjusting an assembly line, or modifying equipment in order to achieve greater efficiencies.  Another advantage of these tax credits is that they are a combination of refundable and non-refundable tax credits, meaning that, even if a company is not paying taxes, they can get a cheque in the mail; this is extremely relevant for start-up companies or companies that are going through an adjustment phase.
The $10,000 has been used to encourage four locally owned and operated companies, who had not previously intended to file for these tax credits.  “These four companies combined have received a total of approximately $358,000 in tax credits through the SR&ED program”, states an elated Moodie.  “Imagine how much continues to go unclaimed!”  The success of the initial four companies has encouraged the SD&G CFDC to continue this program for another round of four companies.  “Our ultimate goal is to encourage our local companies not only to file for the tax credits, but also to engage in more research and development activities,” said Moodie.  “We believe that, if companies realize that these activities will only cost them fifty cents on the dollar, they will do a lot more.”
The SD&G CFDC invites any company that is looking for more information on the SR&ED Tax Credit program to contact their office at (613) 932-4333.  Any company within the SD&G region that has never filed for the SR&ED Tax Credits may also be eligible to receive up to $2,500 to help cover some of the professional fees, but must contact the SD&G CFDC prior to accumulating the expenses.

For more information, please contact:  Derrick Moodie, Executive Director at 932-4333