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INNOVATION FUNDING FOR GROWTH-ORIENTED COMPANIESFebruary 3, 2015
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SR&Education: Everything You Need To Know to Claim SR&ED Tax CreditsFebruary 3, 2015Presented by Jeff Christie
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WHAT’S SR&ED?
Scientific
Research
&
Experimental
Development
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SR&ED FUNDING
In 2013, the CRA
provided $3.4B of
investment tax
credits (ITCs) to
22,000 companies
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SR&ED ELIGIBILITY
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SR&ED ELIGIBILITY
1. Was there a scientific or a technological
uncertainty that could not be removed by
standard practice/engineering?
1. Did the effort involve formulating a
hypothesis specifically aimed at reducing
or eliminating the uncertainty?
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SR&ED ELIGIBILITY
3. Was the adopted procedure consistent with the total discipline of the scientific method, including formulating, testing, and modifying the hypothesis?
3. Did the process result in a scientific or technological advancement?
3. Was a record of the hypothesis tested and results kept as the work progressed?
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EXAMPLES
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WHO CAN CLAIM?
CCPC = Canadian Controlled Private
Corporations
Non-CCPC = Foreign or Publically
Owned Corporations
Partnerships
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WHAT CAN YOU CLAIM
Non-arms length subcontractors
*Salaries and sub-contractors MUST be Canadian tax payers
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CCPC AND SME
SME = Small to medium sized enterprise generating less
than $500K in taxable net income in the prior fiscal year
ITCs are refundable ($$$)
* Salaries and sub-contractors MUST be Canadian tax payers
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ITCs are non-refundable
ITCs can be carried back 3 years or forward
indefinitely
NON-CCPC or LARGE CCPC
* Salaries and sub-contractors MUST be Canadian tax payers
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OVERHEAD
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DOCUMENTATION - TECH
Documented at the
time the work was
completed
Technical obstacles
or challenges
Dated
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DOCUMENTATION - TIME
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DOCUMENTATION - $$$
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HOW TO FILE
Claim is submitted with your corporate tax
return
– One set of tax schedules for Federal
– Another set of tax schedules for Provincial
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WHEN TO CLAIM?
18 Months Past Fiscal Year End
Current Claim = Within 6 mo
Amended Claim = Within 7 to 18 mo
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CRA REVIEWS
CRA Review ≠ Tax Audit
Multiple types of CRA Reviews:
First Time Claimant Advisory Service (FTCAS)
Desktop
Financial
Technical & Financial
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THE DO’S AND DON’TS
Do’s for Companies:
Pay yourself and staff
Start time tracking and proper
documentation now
Incorporate your company and
ensure clear IP ownership
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THE DO’S AND DON’TS
Don’ts for Companies:
Underestimate the importance
of documentation
Focus on the business
opportunity
Leave your SR&ED claim until
the last minute
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HOW WE WORK
Contingent
Scope your claim upfront and invoice when your claim is
successful
Efficient
Only require interviews & documentation
Proactive
Ongoing engagement and future recommendations
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WHY WORK WITH US
Highly reputable
Technology-
focused
Efficient
Well-connected
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JEFF CHRISTIE
PARTNER
403 589 2809 | [email protected]
BoastCapital.com | @BoastCapital | @ChristieLuge
For more info on R&D tax credits and other innovation funding programs,
subscribe to our newsletter.
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www.mitacs.ca 25www.mitacs.ca
Delivering innovation
through research and
development
Eric Loo, PhD
Business Development Specialist
February 3, 2015
Boast Capital
Innovation Funding Lunch and Learn
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www.mitacs.ca 26
Agenda
Why Mitacs?
Talent supply chain
Research outcomes
Mitacs programs
Contact information
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www.mitacs.ca 27
Why Mitacs?
National research network15 years in operation37 research partners61 university partnersAlmost 10,000 research projects to solve business problems and drive innovation
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www.mitacs.ca 28
Annual snapshot
Why Mitacs?
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www.mitacs.ca 29
The Mitacs network
Why Mitacs?
Small & medium business
Large business
Start ups
Multi-nationals
Not-for-profits*
Computer science
Engineering
Anthropology
Economics
Chemistry
Geography
Health sciences
Genetics
Social work
Forestry
History
Languages & linguistics
Mathematics
Business
Education
Interactive arts
Psychology
And more…
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www.mitacs.ca 30
Research talent supply chain
Why Mitacs?
Attract Train Retain Deploy
Best and brightest
research talent
With industry-ready skills and
experience
Talent locally to enhance
Canadian industry
Researchers to drive innovation
outcomes
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www.mitacs.ca 31
National news coverage
Why Mitacs?
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www.mitacs.ca 32
Program growth
Why Mitacs?
0
500
1000
1500
2000
2500
18 30 85 170 240
675
1060
1544 1576
2109
Mitacs
research
projects
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www.mitacs.ca 33
Business Advantages
Why Mitacs?
Access expertise not currently in-house
Leverage R&D budget and claim SR&ED tax credits
Gain a competitive advantage
Tap into a national research network
Develop IP
Researchers paid by Mitacs: not a company employee
Pipeline for recruitment of talent
Mitacs assistance throughout application process
Industry
Industry
International
Academic
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www.mitacs.ca 34
Research Outcomes
Pulp mill saves $40,000/year
Robotics company enhances drone aircraft camera prototype
Biotech firm commercializes one-step food testing kits
New generation greenhouse lighting results in higher crop yields
Enhanced GPS navigation technology commercialized
Improved chat room filter to improve internet security
Why Mitacs?
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www.mitacs.ca 35
Building research collaborations
Large-scale, multidisciplinary projects
From $15,000 to $2M+
Development of IP
Top research talent
Matching funding
Scalable projects
Quick application – 6 week approval
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www.mitacs.ca 36
Standard buildMitacs Accelerate
$10,000minimum intern
stipend
$5,000other project-related
expenses
$7,500Mitacs
$7,500Industry
$15,000Over 4-6 months
• Grad student (MSc or PhD) and Postdocs
• Clearly defined project objectives
• 50/50 time commitment at both the industry and academic sites
• Ensure active collaboration
• Multiple Internships – 2 max per Masters Student
– 6 max per PhD Student
– 6 max per Post-Doc
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www.mitacs.ca 37
Scalability: build large-scale projects,
“clusters”
First 1 to 5 internship units: industry funding matched 1:1
Mitacs Accelerate
6 internships $80,000 (cluster) $44,000 from Mitacs, $36,000 from partner. Minimum 3 interns.
Access researchers from multiple disciplines for the same research project
4 months 4 months 4months 4 months 4 months 4 months
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Cluster buildMitacs Accelerate
• Extra leverage for medium to large projects
• Higher ratio of funds matching
• Minimum 3 students
• Can be split among different research groups
• Scalable: each additional $18K from industry generates $22K from Mitacs
$80,000$36, 000 Industry$44,000 Mitacs
$10,000Stipend
$20,000other project-related
expenses
$10,000Stipend
$10,000Stipend
$10,000Stipend
$10,000Stipend
$10,000Stipend
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www.mitacs.ca 39
Three-year PhD Fellowships
Long-term research collaboration
$90,000 in total funding
$25,000 stipend + $5,000 research costs annually
Peer-reviewed, open to all disciplines and international students
Professor may recruit PhD after project approval
Next call opensEarly 2015
Annual: $12,000 from partner, $18,000 from Mitacs = $30,000 total grant.
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www.mitacs.ca 40
Partners
Business with facilities in Canada
Domestic or foreign-owned
May include– Utility providers
– University spin-offs
– First Nations development corporations
– Industry associations
NGOs, not-for-profit, foundations, industry based research collaborations
Mitacs Accelerate
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Two-year projects
Postdoctoral expertise
Leveraged funding
Relationships with experts
Evaluation of potential employees
Access to specialized software and equipment
Develop in-house R&D capacity
Next callEnd of March
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$50,000
$7,500
$57,500
Mitacs Elevate Annual Funding cycle
Mitacs Elevate
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Our Funding Partners
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Next Steps
Contact me to discuss research goals:
Find a local representative:
mitacs.ca/accelerate/contact-us
Eric LooBusiness Development Specialist
Mobile: 587-335-3778Email: [email protected]
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Feb 3, 2015
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Page X
• Customized guidance from expert advisors
• Informationon funding and support
programs
• Quick assistance
and referrals
Concierge Service – Your Guide to Innovation
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Innovative SMEs
Concierge Service
Federal Innovation Programs/ Services
Provincial Innovation Programs/ Services
Regional Innovation Programs/ Services
Local Innovation Support
Canada Business Network
Concierge Service Partnership Model
Website
Concierge
Advisors
Client
Contact
Centre
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Timeline: Evolution of the Concierge Service
1. Government Programs
2. Expert Information
3. Equipment and Facilities
4. Global Opportunities
• Expanded services progressively phased-in
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•Call our bilingual client contact center
1-855-53-GUIDE (1-855-534-8433)
Hours of operations: 7:30 AM to 7:30 PM EST
Monday to Friday
•Visit our website
Our online database provides initial information on some
of the programs and services that are available:
www.concierge.portal.gc.ca
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How to reach the Concierge Service
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NRC-IRAP
• Advisory Services & Funding Through an Industry Technology Advisor (ITA)
• IRAP = Industrial Research Assistance Program
• BIAP = Business Innovation Access Program
• YEP = Youth Employment Program
• CMC Canada joint program
• SME Canada joint program
• CTO = Contribution to Organizations
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NRC-IRAP
• IRAP typically funds 80% of R&D personnel costs for a project to a max of 50% of total project costs
• Small projects typically an Abbreviated Review Project (up to $50k) requiring about a month
• Larger projects (> $100k contribution) have a more involved due diligence process requiring 1-3 months to complete
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NRC-BIAP
• Funding up to $50k over a 3-6 month period for work done at public R&D institution (e.g. NAIT, UofAB, Red Deer College, NINT, etc.)
• Covers 75% of total project costs
• Work is often access to specialized knowledge and equipment not available to the SME
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NRC-YEP
• Youth Employment Program provides a non-repayable grant for a new technical hire (recent grad)
• Grant (approx. $18k) paid monthly over 6 months
• Application through ITA with turnaround of 10 working days
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IRAP-CMC Canada
• Provides up to $5k for a CMC certified consultant to undertake a strategic project with SME
• Example projects: ERP system, manufacturing process change implementation, market expansion, etc.
• Nominal registration fee of $150 for the SME
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IRAP-SME Canada
• Subsidized access to a bench-marking service
• Value of approx. $1250 with nominal registration fee of $150 for SME
• Allows SME to compare its productivity (various measures) with comparators throughout N. America over time
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IRAP CTOs
• Contribution to Non-Profit NGOs where alignment of objectives is achieved
• Typical grants are to industry associations, incubators/accelerators, economic development agencies
• Local Examples: TEC Edmonton, Leduc-Nisku, Regional Business Accelerator- Lloydminster, Wood Buffalo RBA, BioAlberta, etc.