2008 Federal Budget Commitments related to the SR&ED Program

In the fall of 2007, the Canada Revenue Agency (CRA) and the Department of Finance conducted consultations on how to make the Scientific Research and Experimental Development (SR&ED) Program more effective for Canadian businesses.

Based on these consultations, the Government of Canada announced in the 2008 Federal Budget several actions to improve the administration of the SR&ED program. The Budget confirmed that the CRA was going in the right direction with the following current priorities:

• simplifying the SR&ED claim form and guide;
• developing an eligibility self-assessment tool; and
• conducting a review of the SR&ED policies and procedures.

The Budget also announced additional funding to increase the program's scientific capacity and level of service to claimants. This will include:

• increasing the number of research and technology advisors and research and technology managers in the program, allowing them to spend more time on files, outreach, and program services;
• providing more training and technical support to the research and technology advisors and research and technology managers;
• enhancing the quality assurance methodology; and
• reviewing the dispute resolution procedures.

The simplified SR&ED claim form and guide and the eligibility self-assessment tool will be delivered in the fall of 2008. The review of the SR&ED policies and procedures, including the dispute resolution process, is currently underway.

The SR&ED Program is also developing new products and approaches that will increase the program's scientific capacity and is in the process of hiring additional technical staff.

These actions will facilitate access to the program, improve its consistency and predictability, and enhance the quality of the claims process. Overall, it will improve the SR&ED Program to make it more effective for Canadian businesses.