Kickstarting SR&ED: Essential Startup Insights 1.1

Welcome to Bloom Technical’s SR&ED Academy, a hub where the intricate world of Scientific Research and Experimental Development (SR&ED) becomes clear and accessible. Here, we peel back the layers of SR&ED – yes, pronounced “shred”, reminiscent the pizza-loving, Ninja Turtles nemesis – SR&ED’er. 

Our course is specifically designed to equip startups with the knowledge to file an effective SR&ED claim, transforming your accountant into an invaluable ally in this process. In our initial module, we set the foundation by exploring the rich history and primary objectives of the SR&ED program, preparing you for a successful venture into the realms of innovation and tax benefits. 

Guiding you through this journey is Logan Hanson, a man whose zeal for SR&ED is as evident as a child’s excitement in a toy store. With his background as a CPA, former Tax Manager at KPMG, and CFO at Boast, Logan’s expertise is unrivaled. He’s navigated the most intricate audits and dived into the depths of SR&ED, making him the ideal mentor for this course. There’s a running joke that Logan might dream in tax codes, but that’s just a testament to his dedication! 

Tracing the roots of Canada’s commitment to science and technology, the SR&ED program began in the 1940s. As we moved into the 1960s, the program evolved with the introduction of tax incentives, a strategic decision aimed at motivating entrepreneurs to embark on innovative ventures. This move was intended to boost technological advancements and drive economic progress, setting a precedent for future growth and innovation. 

The 1980s marked a significant evolution for SR&ED, much like transitioning from black-and-white to color television. It enhanced the program’s impact, making it more approachable for businesses unfamiliar with such intricate processes. The simplification of the application procedure and the expansion of eligibility criteria to include startups underscored the program’s commitment to a diverse range of innovative ventures. 

In the 2000s, the SR&ED program underwent another transformation by issuing cash refunds instead of tax credit offsets. This was a critical development for early-stage companies actively engaged in R&D, acknowledging their role at the forefront of innovation despite financial constraints. 

On the global stage, while other countries were refining their innovation strategies, Canada’s SR&ED program stood out by significantly bolstering its support for R&D. This positioned Canada not just as a participant, but as a frontrunner in global innovation, charting a course of progress and creativity. 

Through its various transformations, the SR&ED program has consistently balanced the needs of both small startups and large corporations, maintaining its relevance in an ever-evolving technological landscape. 

So why follow this series of SR&ED Academy posts? Because here, you’ll gain more than just an understanding of tax incentives. You’ll become part of a community that’s at the forefront of shaping the future of innovation. Discover how fun and rewarding navigating the world of SR&ED can be – and we assure you, it’s more engaging than your typical tax seminar. 

We look forward to welcoming you to a journey into the exciting world of innovation tax incentives. Join us next time where we will delve into the world of SR&ED case law and examine prominent lawsuits that have shaped the landscape of SR&ED claims. Let’s unlock the potential of your startup together. 


BLOOM TECHNICAL

Do you have a SRED question? Planning for the future or perhaps you want to know how much your claim might be? Don’t worry, our CPA is always ready to answer any question. Get a SRED expert in your corner.

Have a question? We’d love to help. If you don’t have a SR&ED expert in your corner, doesn’t it make sense to have one?

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