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Source: https://boast.ai/feed/

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<title>Unlocking SR&ED for Mobility Startups: Key Insights from Our SmartTO Webinar</title>
<link>https://boast.ai/blog/unlocking-sred-for-mobility-startups-key-insights-from-our-smartto-webinar/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
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<description><![CDATA[<p>How Canada's expanding SR&ED program creates unprecedented opportunities for transportation and mobility innovators Boast recently partnered with SmartTO to host an interactive webinar exploring how mobility startups and SMEs can maximize their returns from Canada's Scientific Research and Experimental Development (SR&ED) tax credit program. With over $4.1 billion distributed annually, SR&ED remains Canada's largest source [...]</p>
<p>The post <a href="https://boast.ai/blog/unlocking-sred-for-mobility-startups-key-insights-from-our-smartto-webinar/">Unlocking SR&ED for Mobility Startups: Key Insights from Our SmartTO Webinar</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-1"><p><i><span data-contrast="auto">How Canada’s expanding SR&ED program creates unprecedented opportunities for transportation and mobility innovators</span></i><span data-ccp-props="{"> </span></p>
<p><span data-contrast="auto">Boast recently partnered with SmartTO to host an interactive webinar exploring how mobility startups and SMEs can maximize their returns from Canada’s Scientific Research and Experimental Development (SR&ED) tax credit program. With over $4.1 billion distributed annually, SR&ED remains Canada’s largest source of federal R&D support, and 2025 brings game-changing expansions that particularly benefit mobility companies.</span><span data-ccp-props="{"> </span></p>
<p><span data-contrast="auto">Our discussion with Carlos Coelho (Head of Sales) and Mat Rutishauser (Solutions Consultant) revealed why the mobility sector is uniquely positioned to benefit from these changes, and how companies can optimize their approach to unlock significant funding.</span><span data-ccp-props="{"> </span></p>
<p style="text-align: center; "><span data-contrast="auto"><b><u><a href="https://boast.ai/resources/webinars-events/smartto-x-boast-unlocking-sred-for-mobility-businesses-smes">Watch the Full Webinar Here</a></u></b></span></p>
</div><div class="fusion-text fusion-text-2"></div><div class="fusion-video fusion-youtube" style="--awb-max-width:600px;--awb-max-height:360px;"><div class="video-shortcode"><div class="fluid-width-video-wrapper" style="padding-top:60%;" ><iframe title="YouTube video player 1" src="https://www.youtube.com/embed/xoKisDfkxo0?wmode=transparent&autoplay=0&oida=1" width="600" height="360" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture;"></iframe></div></div></div><div class="fusion-text fusion-text-3"><h2 aria-level="2"><b><span data-contrast="none">Why 2025 is a Transformative Year for Mobility R&D Funding </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The proposed </span><a href="https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/"><span data-contrast="none">updates to Canada’s SR&ED program</span></a><span data-contrast="auto"> represent the most significant expansion in over a decade. For mobility companies, these changes address long-standing limitations that previously restricted access to the program’s full benefits.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Major Proposed Program Enhancements </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">Enhanced Credit Limits</span></b><span data-contrast="auto">: The refundable credit ceiling increases from $3M to $4.5M annually, potentially delivering up to $1.575M in cash back versus the previous $1.05M maximum. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Return of Capital Expenditures</span></b><span data-contrast="auto">: For the first time since 2014, companies can claim equipment and machinery costs when used 90%+ for R&D activities. This includes testing equipment, development servers, specialized sensors, and prototyping hardware. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Public Company Eligibility</span></b><span data-contrast="auto">: Canadian public companies will be able to access the enhanced 35% refundable rate, removing a major barrier for scaling mobility firms. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Higher Phase-Out Thresholds</span></b><span data-contrast="auto">: The taxable capital limits are pitched to increase from $10M-$50M to $15M-$75M, allowing larger companies to maintain program eligibility longer. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">As Carlos noted during the webinar: “Your sector is R&D-intensive by nature. Whether you’re developing autonomous vehicle technology, smart traffic management systems, or mobility-as-a-service platforms, you’re likely doing work that qualifies for SR&ED; and soon there could be more money available than ever before.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
</div><div class="fusion-video fusion-youtube" style="--awb-max-width:600px;--awb-max-height:360px;"><div class="video-shortcode"><div class="fluid-width-video-wrapper" style="padding-top:60%;" ><iframe title="YouTube video player 2" src="https://www.youtube.com/embed/cfzcgCjo1yY?wmode=transparent&autoplay=0&oida=1" width="600" height="360" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture;"></iframe></div></div></div><div class="fusion-text fusion-text-4"><h2 aria-level="2"><b><span data-contrast="none">The Mobility Advantage: Why Transportation Companies Are Well-Positioned </span></b></h2>
<p><span data-contrast="auto">During our discussion, we identified six key technology areas where mobility companies consistently demonstrate the scientific and technological uncertainty that qualifies for SR&ED: </span></p>
<ul>
<li><b><span data-contrast="auto">Autonomous vehicle technology</span></b></li>
<li><b><span data-contrast="auto">Smart traffic management systems</span></b></li>
<li><b><span data-contrast="auto">Electric vehicle infrastructure</span></b></li>
<li><b><span data-contrast="auto">Mobility-as-a-service platforms</span></b></li>
<li><b><span data-contrast="auto">Advanced driver assistance systems</span></b></li>
<li><b><span data-contrast="auto">Connected vehicle solutions</span></b></li>
</ul>
<p><span data-contrast="auto">The webinar revealed that mobility companies often underestimate their SR&ED eligibility, focusing too narrowly on whether their work feels “research-y” enough. Mat Rutishauser emphasized the key test: </span></p>
<p><i><span data-contrast="auto">“Ask yourself: Could an expert in your field have achieved this result through routine application of existing knowledge? If the answer is no, you likely have SR&ED.”</span></i></p>
</div><div class="fusion-video fusion-youtube" style="--awb-max-width:600px;--awb-max-height:360px;"><div class="video-shortcode"><div class="fluid-width-video-wrapper" style="padding-top:60%;" ><iframe title="YouTube video player 3" src="https://www.youtube.com/embed/B0zJhPOzIn4?wmode=transparent&autoplay=0&oida=1" width="600" height="360" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture;"></iframe></div></div></div><div class="fusion-text fusion-text-5"><h2 aria-level="2"><b><span data-contrast="none">Real-World Mobility R&D Examples </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Our attendees represented diverse mobility innovations, from waste heat recovery systems for commercial trucks to portable EV charging solutions. Through interactive polling, we discovered that most participants were already incurring SR&ED-eligible expenditures across three categories: </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Personnel Costs</span></b><span data-contrast="auto">: Engineers developing optimization algorithms, data scientists creating predictive models, developers building real-time processing systems </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Equipment & Materials</span></b><span data-contrast="auto">: Testing infrastructure, specialized sensors, cloud computing resources for R&D activities </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Third-Party Services</span></b><span data-contrast="auto">: Custom algorithm development, specialized consulting, integration services for novel applications</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
</div><div class="fusion-video fusion-youtube" style="--awb-max-width:600px;--awb-max-height:360px;"><div class="video-shortcode"><div class="fluid-width-video-wrapper" style="padding-top:60%;" ><iframe title="YouTube video player 4" src="https://www.youtube.com/embed/CWnOYDg164w?wmode=transparent&autoplay=0&oida=1" width="600" height="360" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture;"></iframe></div></div></div><div class="fusion-text fusion-text-6"><h2 aria-level="2"><b><span data-contrast="none">Documentation Strategies That Maximize Returns </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">One of the webinar’s most practical segments focused on documentation, which is the critical factor that determines claim success. Carlos outlined a framework that resonates particularly well with mobility companies: </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">Technical Documentation Essentials </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":281,"335559739":281}"> </span></h3>
<ul>
<li><b><span data-contrast="auto">Hypotheses and approaches</span></b><span data-contrast="auto">: Document what you thought would work and why </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Test plans and protocols</span></b><span data-contrast="auto">: Show systematic investigation rather than trial-and-error </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Results and analysis</span></b><span data-contrast="auto">: Capture what worked, what didn’t, and key learnings </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Iterations and refinements</span></b><span data-contrast="auto">: Track how your approach evolved </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="3"><b><span data-contrast="none">Mobility-Specific Tips </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":281,"335559739":281}"> </span></h2>
<p><b><span data-contrast="auto">For Hardware Development</span></b><span data-contrast="auto">: Document design iterations, maintain testing protocols, track performance metrics against improvement goals </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">For Software/Algorithm Development</span></b><span data-contrast="auto">: Use meaningful version control, benchmark performance results, document A/B testing outcomes </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">For System Integration</span></b><span data-contrast="auto">: Specify interface challenges, document compatibility solutions, track scalability optimization efforts </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Mat shared a crucial insight: “Think in projects, not products. You might have multiple SR&ED projects within one product. Start documenting from day one; don’t reconstruct later.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
</div><div class="fusion-video fusion-youtube" style="--awb-max-width:600px;--awb-max-height:360px;"><div class="video-shortcode"><div class="fluid-width-video-wrapper" style="padding-top:60%;" ><iframe title="YouTube video player 5" src="https://www.youtube.com/embed/ruxk78hpwjM?wmode=transparent&autoplay=0&oida=1" width="600" height="360" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture;"></iframe></div></div></div><div class="fusion-text fusion-text-7"><h2 aria-level="2"><b><span data-contrast="none">Avoiding Common Pitfalls </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The interactive Q&A session revealed several misconceptions that mobility companies should avoid: </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Misconception #1</span></b><span data-contrast="auto">: “We’re just building an app”  </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Reality</span></b><span data-contrast="auto">: If you’re solving complex algorithms or creating new interaction methods, it may qualify </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Misconception #2</span></b><span data-contrast="auto">: “We’re using existing technology”  </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Reality</span></b><span data-contrast="auto">: Combining technologies in new ways or optimizing for specific applications can be SR&ED </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Misconception #3</span></b><span data-contrast="auto">: “It’s too applied to be research”  </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Reality</span></b><span data-contrast="auto">: Experimental development specifically covers practical applications</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Maximizing Your 2025 Strategy </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Based on webinar discussions, here’s an action plan for mobility companies: </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">Immediate Actions </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":281,"335559739":281}"> </span></h3>
<ul>
<li><b><span data-contrast="auto">Project Inventory</span></b><span data-contrast="auto">: Assess current work using the SR&ED lens </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Documentation Systems</span></b><span data-contrast="auto">: Implement systematic tracking if not already in place </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">2025 Planning</span></b><span data-contrast="auto">: Review strategy to maximize the new $4.5M limit and capital eligibility </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h3 aria-level="3"><b><span data-contrast="none">For First-Time Claimants </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":281,"335559739":281}"> </span></h3>
<ul>
<li><span data-contrast="auto">Start with a comprehensive R&D work inventory </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Implement proper time tracking systems </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Consider professional consultation for eligibility assessment </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h3 aria-level="3"><b><span data-contrast="none">For Existing Claimants </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":281,"335559739":281}"> </span></h3>
<ul>
<li><span data-contrast="auto">Review processes against 2025 updates </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Assess capital expenditure opportunities </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Ensure capture of all eligible activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h3 aria-level="2"><b><span data-contrast="none">The Broader Impact: SR&ED as Growth Strategy </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h3>
<p><span data-contrast="auto">Perhaps the most compelling insight from our webinar was reframing SR&ED from a tax consideration to a growth enabler. As one attendee noted, SR&ED funding can extend runway, accelerate development timelines, and enable projects that might otherwise be financially unfeasible. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The documentation habits required for SR&ED also provide secondary benefits: Better progress tracking, clearer communication with investors, and systematic approaches to innovation that strengthen overall R&D practices. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
</div><div class="fusion-video fusion-youtube" style="--awb-max-width:600px;--awb-max-height:360px;"><div class="video-shortcode"><div class="fluid-width-video-wrapper" style="padding-top:60%;" ><iframe title="YouTube video player 6" src="https://www.youtube.com/embed/n09U6okzTPY?wmode=transparent&autoplay=0&oida=1" width="600" height="360" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture;"></iframe></div></div></div><div class="fusion-text fusion-text-8"><h2 aria-level="2"><b><span data-contrast="none">Key Takeaways for Mobility Innovators </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<ol>
<li><b><span data-contrast="auto">2025 presents unprecedented SR&ED opportunities</span></b><span data-contrast="auto"> with expanded limits and restored capital eligibility </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Mobility companies are naturally well-positioned</span></b><span data-contrast="auto"> due to the sector’s R&D-intensive nature </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Systematic documentation from day one</span></b><span data-contrast="auto"> is crucial for maximizing returns </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Technical uncertainty, not business innovation</span></b><span data-contrast="auto">, is the key qualification test </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Professional guidance can significantly impact</span></b><span data-contrast="auto"> both returns and audit protection</span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":0,"335559739":0}"> </span></li>
</ol>
<h2 aria-level="2"><b><span data-contrast="none">Ready to Explore Your SR&ED Potential? </span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335551550":0,"335551620":0,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The mobility sector’s rapid evolution creates ongoing opportunities for companies pushing technological boundaries. Whether you’re developing next-generation autonomous systems, optimizing electric vehicle infrastructure, or creating integrated mobility platforms, your innovation work likely qualifies for substantial government support. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Access the full webinar recording</span></b><span data-contrast="auto"> to hear detailed discussions on mobility-specific SR&ED strategies, documentation best practices, and the expanded opportunities available in 2025. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">For companies interested in exploring their SR&ED potential, Boast offers free eligibility assessments specifically tailored to mobility and transportation technologies. Our team understands the unique challenges and opportunities in your sector, helping you maximize returns while ensuring full compliance. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335551550":0,"335551620":0,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Contact Carlos Coelho at </span></b><a href="mailto:ccoelho@boast.ai"><b><span data-contrast="none">ccoelho@boast.ai</span></b></a><b><span data-contrast="auto"> to schedule your free SR&ED assessment.</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-ccp-props="{}"> </span></p>
<p><i><span data-contrast="auto">Special thanks to SmartTO for partnering with us on this educational initiative and to all webinar participants for their engaging questions and insights.</span></i><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">About Boast</span></b><span data-contrast="auto">: Boast helps innovative companies maximize their R&D tax credits and government funding. With over $600 million secured for North American businesses, our technology-enabled approach combines deep expertise with automated processes to ensure maximum returns with minimal effort from your team.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">About SmartTO</span></b><span data-contrast="auto">: SmartTO is York Region’s transportation technology hub, fostering innovation in mobility solutions and connecting startups with the resources they need to scale.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/unlocking-sred-for-mobility-startups-key-insights-from-our-smartto-webinar/">Unlocking SR&ED for Mobility Startups: Key Insights from Our SmartTO Webinar</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></content:encoded>
</item>
<item>
<title>SmartTO x Boast: Unlocking SR&ED for Mobility Businesses & SMEs</title>
<link>https://boast.ai/resources/webinars-events/smartto-x-boast-unlocking-sred-for-mobility-businesses-smes/</link>
<dc:creator><![CDATA[Carrie]]></dc:creator>
<pubDate>Tue, 16 Sep 2025 18:57:54 +0000</pubDate>
<category><![CDATA[Events & Webinars]]></category>
<category><![CDATA[On-Demand]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340508</guid>
<description><![CDATA[<p>On Demand Webinar SmartTO x Boast: Unlocking SR&ED for Mobility Businesses & SMEs Canada’s Scientific Research & Experimental Development (SR&ED) program is undergoing its biggest expansion in over a decade, bringing unprecedented opportunities for mobility and transportation innovators. Through real-world mobility examples and practical documentation strategies, this webinar will help [...]</p>
<p>The post <a href="https://boast.ai/resources/webinars-events/smartto-x-boast-unlocking-sred-for-mobility-businesses-smes/">SmartTO x Boast: Unlocking SR&ED for Mobility Businesses & SMEs</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<p><div class="fusion-fullwidth fullwidth-box fusion-builder-row-2 fusion-flex-container has-pattern-background has-mask-background fusion-parallax-none nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:80px;--awb-padding-bottom:81px;--awb-background-image:url("https://boast.ai/wp-content/uploads/cdae-hero_tech_network-300x129.jpg");--awb-background-size:cover;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-justify-content-space-between fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_2 1_2 fusion-flex-column" style="--awb-padding-top:61px;--awb-padding-top-small:0px;--awb-padding-bottom-small:0px;--awb-bg-size:cover;--awb-width-large:50%;--awb-margin-top-large:0px;--awb-spacing-right-large:3.84%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:3.84%;--awb-width-medium:50%;--awb-order-medium:0;--awb-spacing-right-medium:3.84%;--awb-spacing-left-medium:3.84%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-margin-bottom-small:48px;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-justify-content-space-between fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner 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style="--awb-margin-right:50px;--awb-max-width:110px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-1 hover-type-none"><img fetchpriority="high" decoding="async" width="580" height="205" title="SmartTO York University white" src="https://boast.ai/wp-content/uploads/SmartTO-York-University-white.png" alt class="img-responsive wp-image-340515" srcset="https://boast.ai/wp-content/uploads/SmartTO-York-University-white-200x71.png 200w, https://boast.ai/wp-content/uploads/SmartTO-York-University-white-400x141.png 400w, 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fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-justify-content-space-between fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-1 fusion_builder_column_inner_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row fusion-flex-align-items-center"><div class="fusion-image-element " style="--awb-max-width:30px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-3 hover-type-none"><img decoding="async" width="96" height="96" title="AI-Powered Classification" src="https://boast.ai/wp-content/uploads/AI-Powered-Classification.svg" alt class="img-responsive wp-image-324102"/></span></div><div class="fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-five" style="--awb-text-color:var(--awb-color1);--awb-margin-top:5px;--awb-margin-bottom:0px;--awb-margin-left:10px;"><h5 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;text-transform:uppercase;--fontSize:18;--minFontSize:18;line-height:1.3;">On Demand Webinar</h5></div></div></div></div><div class="fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-one" style="--awb-text-color:var(--awb-color1);--awb-margin-bottom:30px;"><h1 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:60;line-height:var(--awb-typography1-line-height);"><span style="color: #ffffff;">SmartTO x Boast:</span> Unlocking SR&ED for Mobility Businesses & SMEs</h1></div><div class="fusion-text fusion-text-9" style="--awb-text-color:var(--awb-color1);"><p>Canada’s Scientific Research & Experimental Development (SR&ED) program is undergoing its biggest expansion in over a decade, bringing unprecedented opportunities for mobility and transportation innovators.</p>
<p>Through real-world mobility examples and practical documentation strategies, this webinar will help you understand why this sector is uniquely positioned to benefit, clear up common misconceptions, and outlines next steps to help both new and experienced claimants capture up to $4.5M in funding. More than a tax incentive, SR&ED is a growth strategy that can extend runway, accelerate innovation, and unlock projects that might otherwise be out of reach.</p>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_2_5 2_5 fusion-flex-column" style="--awb-padding-top:50px;--awb-padding-right:30px;--awb-padding-bottom:30px;--awb-padding-left:30px;--awb-overflow:hidden;--awb-bg-color:var(--awb-color1);--awb-bg-color-hover:var(--awb-color1);--awb-bg-size:cover;--awb-border-radius:8px 8px 8px 8px;--awb-width-large:40%;--awb-margin-top-large:0px;--awb-spacing-right-large:4.8%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:4.8%;--awb-width-medium:40%;--awb-order-medium:0;--awb-spacing-right-medium:4.8%;--awb-spacing-left-medium:4.8%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-3 fusion-sep-none fusion-title-text fusion-title-size-three"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Watch the free webinar recording</h3></div><iframe src="https://info.boast.ai/l/1092992/2025-03-17/341npj?" width="100%;" height="900" type="text/html" frameborder="0" allowTransparency="true" style="border: 0" id="myiframe"></iframe>
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</div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:80px;--awb-padding-bottom:80px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_2 1_2 fusion-flex-column" style="--awb-padding-top:15px;--awb-padding-right:77px;--awb-padding-right-medium:0px;--awb-padding-right-small:0px;--awb-bg-size:cover;--awb-width-large:50%;--awb-margin-top-large:0px;--awb-spacing-right-large:3.84%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:3.84%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-margin-bottom-medium:63px;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-margin-bottom-small:57px;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-4 fusion-sep-none fusion-title-text fusion-title-size-three"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Who Should Watch</h3></div><div class="fusion-text fusion-text-10"><ul>
<li>Founders & co-founders of innovative startups</li>
<li>Finance, operations, and R&D leaders at SMEs in the sector</li>
<li>Entrepreneurs planning to develop new mobility products or services</li>
<li>Innovation managers seeking to leverage tax credits for growth</li>
</ul>
</div><div class="fusion-title title fusion-title-5 fusion-sep-none fusion-title-text fusion-title-size-three"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Here’s What You’ll Learn</h3></div><ul style="--awb-line-height:27.2px;--awb-icon-width:27.2px;--awb-icon-height:27.2px;--awb-icon-margin:11.2px;--awb-content-margin:38.4px;" class="fusion-checklist fusion-checklist-1 fusion-checklist-default type-icons"><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon awb-icon-check" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>SR&ED 101 for Innovators:</b> Understand the fundamentals of Canada’s SR&ED program and how it applies to transportation and mobility technologies</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon awb-icon-check" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>Spot Eligible R&D Activities:</b> Learn how to identify qualifying projects, from EV powertrain development to intelligent traffic management systems</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon awb-icon-check" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>Build Strong Claims: </b>Best practices for documentation, evidence gathering, and meeting compliance requirements</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon awb-icon-check" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>Avoid Common Pitfalls:</b> Real-world examples of what can delay or derail claims and how to steer clear of them</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon awb-icon-check" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>Pathway to Partner with Boast:</b> How Boast helps mobility ventures maximize their SR&ED benefits</p>
</div></li></ul></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_2 1_2 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:50%;--awb-margin-top-large:0px;--awb-spacing-right-large:0px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:3.84%;--awb-width-medium:50%;--awb-order-medium:0;--awb-spacing-right-medium:0px;--awb-spacing-left-medium:3.84%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-margin-bottom-small:0px;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-6 fusion-sep-none fusion-title-text fusion-title-size-two" style="--awb-margin-bottom:30px;"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Speakers</h2></div><div class="fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-2 fusion_builder_column_inner_1_4 1_4 fusion-flex-column fusion-flex-align-self-stretch" style="--awb-bg-size:cover;--awb-width-large:25%;--awb-margin-top-large:0px;--awb-spacing-right-large:7.68%;--awb-margin-bottom-large:35px;--awb-spacing-left-large:7.68%;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:5.76%;--awb-spacing-left-medium:5.76%;--awb-width-small:25%;--awb-order-small:0;--awb-spacing-right-small:7.68%;--awb-spacing-left-small:7.68%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="--awb-aspect-ratio:1 / 1;--awb-object-position:55% 32%;--awb-max-width:150px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><div style="display:inline-block;width:150px;"><span class=" fusion-imageframe imageframe-none imageframe-4 hover-type-none has-aspect-ratio" style="border-radius:50%;"><img decoding="async" width="490" height="490" title="carlos circle" src="https://boast.ai/wp-content/uploads/carlos-circle.png" class="img-responsive wp-image-328150 img-with-aspect-ratio" data-parent-fit="cover" data-parent-container=".fusion-image-element" alt srcset="https://boast.ai/wp-content/uploads/carlos-circle-24x24.png 24w, https://boast.ai/wp-content/uploads/carlos-circle-48x48.png 48w, https://boast.ai/wp-content/uploads/carlos-circle-96x96.png 96w, https://boast.ai/wp-content/uploads/carlos-circle-150x150.png 150w, https://boast.ai/wp-content/uploads/carlos-circle-300x300.png 300w, https://boast.ai/wp-content/uploads/carlos-circle.png 490w" sizes="(max-width: 490px) 100vw, 490px" /></span></div></div></div></div><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-3 fusion_builder_column_inner_2_3 2_3 fusion-flex-column fusion-flex-align-self-stretch" style="--awb-bg-size:cover;--awb-width-large:66.666666666667%;--awb-margin-top-large:0px;--awb-spacing-right-large:2.88%;--awb-margin-bottom-large:35px;--awb-spacing-left-large:2.88%;--awb-width-medium:66.666666666667%;--awb-order-medium:0;--awb-spacing-right-medium:2.88%;--awb-spacing-left-medium:2.88%;--awb-width-small:75%;--awb-order-small:0;--awb-spacing-right-small:2.56%;--awb-spacing-left-small:2.56%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-center fusion-content-layout-column"><div class="fusion-title title fusion-title-7 fusion-sep-none fusion-title-text fusion-title-size-three" style="--awb-margin-top:0px;--awb-margin-bottom:0px;"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Carlos Coelho</h3></div><div class="fusion-title title fusion-title-8 fusion-sep-none fusion-title-text fusion-title-size-four" style="--awb-margin-top:0px;--awb-margin-bottom:0px;"><h4 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.4;">Head of Sales</h4></div><div class="fusion-image-element " style="--awb-margin-top:10px;--awb-max-width:70px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-5 hover-type-none"><img decoding="async" width="361" height="96" title="Boast Logo Color WEB" src="https://boast.ai/wp-content/uploads/Boast-Logo-Color-WEB.svg" alt class="img-responsive wp-image-326535"/></span></div></div></div></div><div class="fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-4 fusion_builder_column_inner_1_4 1_4 fusion-flex-column fusion-flex-align-self-stretch" style="--awb-bg-size:cover;--awb-width-large:25%;--awb-margin-top-large:0px;--awb-spacing-right-large:7.68%;--awb-margin-bottom-large:35px;--awb-spacing-left-large:7.68%;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:5.76%;--awb-spacing-left-medium:5.76%;--awb-width-small:25%;--awb-order-small:0;--awb-spacing-right-small:7.68%;--awb-spacing-left-small:7.68%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="--awb-aspect-ratio:1 / 1;--awb-object-position:61% 58%;--awb-max-width:150px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><div style="display:inline-block;width:150px;"><span class=" fusion-imageframe imageframe-none imageframe-6 hover-type-none has-aspect-ratio" style="border-radius:50%;"><img decoding="async" width="1200" height="800" title="mat updated headshot" src="https://boast.ai/wp-content/uploads/mat-updated-headshot.jpg" class="img-responsive wp-image-334554 img-with-aspect-ratio" data-parent-fit="cover" data-parent-container=".fusion-image-element" alt srcset="https://boast.ai/wp-content/uploads/mat-updated-headshot-200x133.jpg 200w, https://boast.ai/wp-content/uploads/mat-updated-headshot-400x267.jpg 400w, https://boast.ai/wp-content/uploads/mat-updated-headshot-600x400.jpg 600w, https://boast.ai/wp-content/uploads/mat-updated-headshot-800x533.jpg 800w, https://boast.ai/wp-content/uploads/mat-updated-headshot.jpg 1200w" sizes="(max-width: 640px) 100vw, 400px" /></span></div></div></div></div><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-5 fusion_builder_column_inner_2_3 2_3 fusion-flex-column fusion-flex-align-self-stretch" style="--awb-bg-size:cover;--awb-width-large:66.666666666667%;--awb-margin-top-large:0px;--awb-spacing-right-large:2.88%;--awb-margin-bottom-large:35px;--awb-spacing-left-large:2.88%;--awb-width-medium:66.666666666667%;--awb-order-medium:0;--awb-spacing-right-medium:2.88%;--awb-spacing-left-medium:2.88%;--awb-width-small:75%;--awb-order-small:0;--awb-spacing-right-small:2.56%;--awb-spacing-left-small:2.56%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-center fusion-content-layout-column"><div class="fusion-title title fusion-title-9 fusion-sep-none fusion-title-text fusion-title-size-three" style="--awb-margin-top:0px;--awb-margin-bottom:0px;"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Mat Rutishauser</h3></div><div class="fusion-title title fusion-title-10 fusion-sep-none fusion-title-text fusion-title-size-four" style="--awb-margin-top:0px;--awb-margin-bottom:0px;"><h4 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.4;">Solutions Consultant</h4></div><div class="fusion-image-element " style="--awb-margin-top:10px;--awb-max-width:70px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-7 hover-type-none"><img decoding="async" width="361" height="96" title="Boast Logo Color WEB" src="https://boast.ai/wp-content/uploads/Boast-Logo-Color-WEB.svg" alt class="img-responsive wp-image-326535"/></span></div></div></div></div><div class="fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-6 fusion_builder_column_inner_1_4 1_4 fusion-flex-column fusion-flex-align-self-stretch" style="--awb-bg-size:cover;--awb-width-large:25%;--awb-margin-top-large:0px;--awb-spacing-right-large:7.68%;--awb-margin-bottom-large:35px;--awb-spacing-left-large:7.68%;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:5.76%;--awb-spacing-left-medium:5.76%;--awb-width-small:25%;--awb-order-small:0;--awb-spacing-right-small:7.68%;--awb-spacing-left-small:7.68%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="--awb-aspect-ratio:1 / 1;--awb-object-position:62% 56%;--awb-max-width:150px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><div style="display:inline-block;width:150px;"><span class=" fusion-imageframe imageframe-none imageframe-8 hover-type-none has-aspect-ratio" style="border-radius:50%;"><img decoding="async" width="800" height="800" title="Paul Headshot" src="https://boast.ai/wp-content/uploads/Paul-Headshot.jpeg" class="img-responsive wp-image-323916 img-with-aspect-ratio" data-parent-fit="cover" data-parent-container=".fusion-image-element" alt srcset="https://boast.ai/wp-content/uploads/Paul-Headshot-150x150.jpeg 150w, https://boast.ai/wp-content/uploads/Paul-Headshot-300x300.jpeg 300w, https://boast.ai/wp-content/uploads/Paul-Headshot-768x768.jpeg 768w, https://boast.ai/wp-content/uploads/Paul-Headshot.jpeg 800w" sizes="(max-width: 800px) 100vw, 800px" /></span></div></div></div></div><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-7 fusion_builder_column_inner_2_3 2_3 fusion-flex-column fusion-flex-align-self-stretch" style="--awb-bg-size:cover;--awb-width-large:66.666666666667%;--awb-margin-top-large:0px;--awb-spacing-right-large:2.88%;--awb-margin-bottom-large:35px;--awb-spacing-left-large:2.88%;--awb-width-medium:66.666666666667%;--awb-order-medium:0;--awb-spacing-right-medium:2.88%;--awb-spacing-left-medium:2.88%;--awb-width-small:75%;--awb-order-small:0;--awb-spacing-right-small:2.56%;--awb-spacing-left-small:2.56%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-center fusion-content-layout-column"><div class="fusion-title title fusion-title-11 fusion-sep-none fusion-title-text fusion-title-size-three" style="--awb-margin-top:0px;--awb-margin-bottom:0px;"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Paul Davenport</h3></div><div class="fusion-title title fusion-title-12 fusion-sep-none fusion-title-text fusion-title-size-four" style="--awb-margin-top:0px;--awb-margin-bottom:0px;"><h4 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.4;">Moderator</h4></div><div class="fusion-image-element " style="--awb-margin-top:10px;--awb-max-width:70px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-9 hover-type-none"><img decoding="async" width="361" height="96" title="Boast Logo Color WEB" src="https://boast.ai/wp-content/uploads/Boast-Logo-Color-WEB.svg" alt class="img-responsive wp-image-326535"/></span></div></div></div></div></div></div></div></div></p>
<p>The post <a href="https://boast.ai/resources/webinars-events/smartto-x-boast-unlocking-sred-for-mobility-businesses-smes/">SmartTO x Boast: Unlocking SR&ED for Mobility Businesses & SMEs</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></content:encoded>
</item>
<item>
<title>Building on Success: Why SR&ED Reform Needs Smart Guardrails</title>
<link>https://boast.ai/blog/sr-ed/building-on-success-why-sred-reform-needs-smart-guardrails/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Tue, 16 Sep 2025 11:09:49 +0000</pubDate>
<category><![CDATA[Innovation Insights]]></category>
<category><![CDATA[SR&ED]]></category>
<category><![CDATA[Canada]]></category>
<category><![CDATA[development]]></category>
<category><![CDATA[entrepreneurs]]></category>
<category><![CDATA[federal budget]]></category>
<category><![CDATA[financing]]></category>
<category><![CDATA[funding]]></category>
<category><![CDATA[fundraising]]></category>
<category><![CDATA[Government Funding]]></category>
<category><![CDATA[growth]]></category>
<category><![CDATA[innovation]]></category>
<category><![CDATA[R&D tax credit]]></category>
<category><![CDATA[research]]></category>
<category><![CDATA[sr&ed]]></category>
<category><![CDATA[SR&ED Resources]]></category>
<category><![CDATA[SRED]]></category>
<category><![CDATA[SRED Resources]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340494</guid>
<description><![CDATA[<p>When Harley Finkelstein—one of Canada's leading innovators and co-founder of Shopify—advocates for stronger government-backed innovation funding, we listen. His recent article on SR&ED reform raises critical questions about making Canada's primary R&D support program more accessible and effective. We are genuinely excited about this conversation. Any time one of Canada's most successful entrepreneurs is pushing [...]</p>
<p>The post <a href="https://boast.ai/blog/sr-ed/building-on-success-why-sred-reform-needs-smart-guardrails/">Building on Success: Why SR&ED Reform Needs Smart Guardrails</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-4 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-5 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-11"><p><span data-contrast="auto">When Harley Finkelstein—one of Canada’s leading innovators and co-founder of Shopify—advocates for stronger government-backed innovation funding, we listen. </span><a href="https://www.buildcanada.com/en/memos/fix-sred"><span data-contrast="none">His recent article</span></a><span data-contrast="auto"> on SR&ED reform raises critical questions about making Canada’s primary R&D support program more accessible and effective.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">We are genuinely excited about this conversation. </span><b><span data-contrast="auto">Any time one of Canada’s most successful entrepreneurs is pushing for better innovation policy, that’s a win for the entire ecosystem.</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Harley’s reform plan roughly boils down to 3 key themes:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Establish a Pre-Approval System</span></b><span data-contrast="auto">: Create an online portal where engineers and scientists can submit project templates upfront and receive binding approval certificates, reducing annual filing to simple expense reporting</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Eliminating Consultant Spending</span></b><span data-contrast="auto">: Cut out the consultant industry (which serves 80%+ of claimants) by enabling R&D teams to handle directly</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Expanding Program Scope</span></b><span data-contrast="auto">: Include foreign companies (with Canadian IP ownership requirements) and broaden qualifying activities to cover commercialization work like prototype refinement, regulatory approval, and pilot projects</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><span data-contrast="auto">The Best analogy: </span><b><i><span data-contrast="auto">Think of SR&ED like building a house.</span></i></b><span data-contrast="auto"> In some jurisdictions, you </span><i><span data-contrast="auto">may be allowed to </span></i><span data-contrast="auto">do your own plumbing or electrical work without involving professional contractors. But if you don’t know those systems, you may end up with a faulty house. Most smart homeowners hire licensed contractors who’ve proven their expertise.</span><span data-ccp-props="{'134233117':false,'134233118':false,'201341983':0,'335551550':1,'335551620':1,'335559685':0,'335559737':0,'335559738':240,'335559739':240,'335559740':279}"> </span></p>
<p><b><span data-contrast="auto">The same principle should guide SR&ED reform.</span></b><span data-contrast="auto"> We can make the program more accessible without throwing out the quality standards that protect taxpayer dollars and ensure legitimate innovators get the support they deserve.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_The_case_for_using_Professionals" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The case for using Professionals</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">More than 80% of SR&ED claimants work with specialized consultants, and there’s a good reason why. </span><span data-contrast="auto" style="background-color: rgba(0, 0, 0, 0);">You </span><i style="background-color: rgba(0, 0, 0, 0);"><span data-contrast="auto">could</span></i><span data-contrast="auto" style="background-color: rgba(0, 0, 0, 0);"> try to navigate the complex qualification requirements yourself, but here’s what you’d be taking on:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}" style="background-color: rgba(0, 0, 0, 0);"> </span></p>
<ul>
<li><b><span data-contrast="auto">Technical qualification decisions</span></b><span data-contrast="auto">: Distinguishing genuine technological uncertainty from routine development work</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Multi-program coordination</span></b><span data-contrast="auto">: Optimizing across SR&ED, CDAE, IDMTC, and Cleantech incentives</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Documentation strategy</span></b><span data-contrast="auto">: Creating audit-ready records that capture the experimental nature of innovation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Risk management</span></b><span data-contrast="auto">: Ensuring claims withstand increasingly rigorous CRA audits</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><span data-contrast="auto">We believe that</span><b><span data-contrast="auto"> entrepreneurs should focus on building businesses, not becoming tax experts</span></b><span data-contrast="auto">.</span><span data-contrast="auto"> Any single moment not spent on finding and retaining customers is a wasted moment. The most successful companies recognize that specialization drives results, and there is always an opportunity cost for time. They hire marketing experts for marketing, legal experts for legal work, and R&D tax credit experts for maximizing innovation incentives.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_The_Problem_with_OverSimplifying_SRED" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Problem with Over-Simplifying SR&ED</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">We agree that SR&ED should be more accessible. But there’s a critical balance </span><b><span data-contrast="auto">to ensure that the right due diligence is built into the program to reward innovators.</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Where experience is missing, DIY approaches to R&D tax credits may fall short because:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span style="background-color: rgba(0, 0, 0, 0);"><span data-contrast="auto" style=""><b>1. Quality Control Breaks Down</b></span></span></p>
<p><span data-contrast="auto">Without expert guidance, companies may misclassify activities, either missing legitimate qualifying work or overclaiming ineligible expenses. An audit with the CRA is neither pleasant nor necessary if you can avoid it with quality work. </span></p>
<p><b><span data-contrast="auto">2. Multi-Program Value Gets Lost</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Companies attempting DIY SR&ED may miss complementary programs that could boost their total returns. You should focus on optimizing across programs.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span style="background-color: rgba(0, 0, 0, 0);"><span data-contrast="auto" style=""><b>3. Audit Protection Disappears</b></span></span></p>
<p><span data-contrast="auto">When the CRA comes calling, DIY claimants are left exposed with inadequate documentation and no professional support.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">The licensed contractor analogy holds:</span></b><span data-contrast="auto"> Just as building codes protect homeowners and communities, SR&ED quality standards protect both taxpayers and legitimate innovators.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_A_Framework_for_Smart_Reform" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">A Framework for Smart Reform</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">Canada’s recent SR&ED enhancements (higher limits, public company eligibility, and capital expenditure inclusion) represent genuine progress worth building upon.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Future reforms should focus on:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Strengthen Professional Standards</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Ensure companies work with qualified specialists who understand the full landscape of Canadian innovation incentives. </span><i><span data-contrast="auto">Think licensing requirements that maintain quality while expanding access.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Streamline Without Compromising</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Implement risk-based auditing, faster processing for repeat claimants, and digital submission processes, but maintain the documentation standards that prevent fraud.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Expand Access Thoughtfully</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Consider carefully vetted expansions to qualifying activities based on evidence and stakeholder consultation, always with appropriate safeguards.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Maintain Due Process</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Preserve the review standards that ensure SR&ED funds genuine innovation activities, not routine business operations masquerading as R&D.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="2" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Bottom Line</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335551550':0,'335551620':0,'335559738':299,'335559739':299}"> </span></h3>
<p><b><span data-contrast="auto">We absolutely agree that the SR&ED program should be improved and made more accessible.</span></b><span data-contrast="auto"> After all, effective reform requires smart guardrails that prevent abuse while empowering legitimate innovators.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Entrepreneurs should focus on what they do best: Building innovative businesses.</span></b><span data-contrast="auto"> Let qualified professionals support them as needed. Canada’s innovation future depends on getting this balance right: Accessible programs with smart safeguards that protect both innovators and taxpayers.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
<p><span data-ccp-props="{'335551550':0,'335551620':0}"> </span></p>
<p><i><span data-contrast="auto">Ready to maximize your R&D investments without the compliance headaches? The enhanced SR&ED program offers more opportunities than ever, but navigating the requirements still requires expertise. </span></i><a href="https://boast.ai/talk-to-an-expert/"><i><span data-contrast="none">Connect with our team</span></i></a><i><span data-contrast="auto"> to explore how we can help you capture maximum value while ensuring full compliance.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335551550':0,'335551620':0,'335559738':240,'335559739':240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/sr-ed/building-on-success-why-sred-reform-needs-smart-guardrails/">Building on Success: Why SR&ED Reform Needs Smart Guardrails</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></content:encoded>
</item>
<item>
<title>Canadian SMEs Under Pressure: How Innovation Funding Can Help Weather the Storm</title>
<link>https://boast.ai/blog/sr-ed/canadian-smes-under-pressure-how-innovation-funding-can-help-weather-the-storm/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Fri, 12 Sep 2025 11:28:25 +0000</pubDate>
<category><![CDATA[Business Growth]]></category>
<category><![CDATA[SR&ED]]></category>
<category><![CDATA[development]]></category>
<category><![CDATA[economy]]></category>
<category><![CDATA[enterprise]]></category>
<category><![CDATA[funding]]></category>
<category><![CDATA[growth]]></category>
<category><![CDATA[innovation]]></category>
<category><![CDATA[midmarket]]></category>
<category><![CDATA[R&D]]></category>
<category><![CDATA[research]]></category>
<category><![CDATA[small business]]></category>
<category><![CDATA[SMB]]></category>
<category><![CDATA[SME]]></category>
<category><![CDATA[sr&ed]]></category>
<category><![CDATA[SRED]]></category>
<category><![CDATA[tariffs]]></category>
<category><![CDATA[tax credits]]></category>
<category><![CDATA[taxes]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340486</guid>
<description><![CDATA[<p>The TL;DR: Nearly 20% of Canadian SMEs facing tariff-related costs won't survive more than six months without change, according to new CFIB data. With Canadian small businesses already paying 20-23% more in taxes than their US counterparts, strategic access to innovation funding like SR&ED has never been more critical for survival and growth. The numbers paint [...]</p>
<p>The post <a href="https://boast.ai/blog/sr-ed/canadian-smes-under-pressure-how-innovation-funding-can-help-weather-the-storm/">Canadian SMEs Under Pressure: How Innovation Funding Can Help Weather the Storm</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-5 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-6 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-12"><p><b><span data-contrast="auto">The TL;DR: </span></b><span data-contrast="auto">Nearly 20% of Canadian SMEs facing tariff-related costs won’t survive more than six months without change, </span><a href="https://www.cfib-fcei.ca/en/media/nearly-one-in-five-small-businesses-dealing-with-tariff-costs-wont-last-more-than-six-months-if-nothing-changes"><span data-contrast="none">according to new CFIB data</span></a><span data-contrast="auto">. With Canadian small businesses already paying </span><a href="https://www.newswire.ca/news-releases/smaller-businesses-pay-between-20-23-more-in-taxes-in-canada-than-in-the-u-s--805848962.html"><span data-contrast="none">20-23% more in taxes than their US counterparts</span></a><span data-contrast="auto">, strategic access to innovation funding like SR&ED has never been more critical for survival and growth.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The numbers paint a stark picture for Canadian small and medium enterprises (SMEs). The latest findings from the Canadian Federation of Independent Business (CFIB) reveal an economy under strain, with small businesses caught in a perfect storm of rising costs, tariff pressures, and structural tax disadvantages that threaten their very survival.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Crisis in Numbers</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Nearly one in five (19%) Canadian small businesses facing tariff-related costs say they will not survive more than six months if current conditions persist, according to CFIB’s August 2025 survey. Even more concerning, nearly four in 10 (38%) said they would last less than a year under current conditions.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The tariff impact is hitting businesses across multiple fronts:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Small businesses are being hit hardest by both U.S. and Canadian tariffs on steel and aluminum (59%), as well as Canada’s own retaliatory tariffs on other U.S. goods (58%)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Nearly half (48%) report lower revenues, while 41% are experiencing supply chain disruptions and 36% have paused investments</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Nearly one-third of Canadian SMEs will be negatively affected by the loss of the $800 U.S. de minimis exemption</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><span data-contrast="auto">But tariffs are just one piece of a larger competitiveness puzzle that’s been building for years.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Deeper Structural Challenge</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">A microbusiness (four employees) in Canada pays on average a whopping 20% more in taxes than a similar firm in the United States, according to CFIB’s latest cross-border tax analysis. A small business (25 employees) pays 23% more in taxes than its U.S. counterpart.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">This tax disadvantage compounds the immediate tariff pressures, creating a two-front challenge for Canadian businesses:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Immediate survival pressure:</span></b><span data-contrast="auto"> Tariff costs and supply chain disruptions threatening short-term viability</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Long-term competitiveness erosion:</span></b><span data-contrast="auto"> Structural tax disadvantages that make it harder to invest, grow, and compete</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<p><span data-contrast="auto">“U.S. tariffs are not the only competitive issue facing Canadian small businesses,” said Bradlee Whidden, senior policy analyst and report co-author. “When you look at the numbers, it’s crystal clear: smaller businesses in Canada are already at a serious tax disadvantage.”</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Why This Matters Beyond SMEs</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">While the CFIB data focuses on small businesses, the implications extend far beyond the SME sector. If 19% of small businesses can’t weather the tariff storm, that represents a significant portion of the Canadian workforce suddenly at risk.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Mid-market and enterprise companies aren’t immune either. They face the same structural tax disadvantages and often have more complex supply chains that amplify tariff impacts. More importantly, they depend on the ecosystem of small suppliers, service providers, and partners that are now at risk.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">“Canada is built on small businesses – they are a large employer across the country, and we need to make sure we continue empowering those entrepreneurs to ensure we meet the productivity crisis that we’re seeing,” notes Michelle Auger, senior policy analyst at CFIB.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">A Strategic Response: Innovation Funding as a Lifeline</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">In times of economic uncertainty, businesses that can demonstrate innovation and technological advancement have better access to funding, government support, and market opportunities. This is where Canada’s Scientific Research and Experimental Development (SR&ED) program becomes not just an opportunity, but a strategic necessity.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The timing couldn’t be better. Canada </span><a href="https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/"><span data-contrast="none">just announced the biggest enhancements to its SR&ED program in years</span></a><span data-contrast="auto">, with higher credit limits, expanded eligibility, and the return of capital expenditure eligibility. These changes, effective for tax years beginning after December 16, 2024, represent a significant opportunity for businesses to improve their cash flow while investing in their future competitiveness.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">The New SR&ED Landscape</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">The enhanced SR&ED program offers several key improvements:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Higher credit limits:</span></b><span data-contrast="auto"> The annual expenditure limit for the enhanced 35% refundable tax credit has jumped from $3 million to $4.5 million</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Expanded eligibility:</span></b><span data-contrast="auto"> Canadian public corporations can now access the same enhanced 35% refundable tax credit on up to $4.5 million of qualifying expenditures</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">More generous thresholds:</span></b><span data-contrast="auto"> The taxable capital phase-out thresholds have increased from $10-50 million to $15-75 million</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Capital expenditures return:</span></b><span data-contrast="auto"> Capital expenditures are once again eligible for both SR&ED deductions and investment tax credits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><span data-contrast="auto">For a small business at the current maximum, this means you just got a potential $525,000 annual boost to your cash flow.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Making Innovation Funding Work in Crisis Mode</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The key to leveraging innovation funding during economic uncertainty is understanding that R&D doesn’t stop during tough times; it evolves. Businesses facing tariff pressures might be developing:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Process innovations</span></b><span data-contrast="auto"> to reduce costs and improve efficiency</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Supply chain alternatives</span></b><span data-contrast="auto"> through new technologies or partnerships</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Product adaptations</span></b><span data-contrast="auto"> to serve changing market conditions</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Automation solutions</span></b><span data-contrast="auto"> to reduce labor costs and improve competitiveness</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><span data-contrast="auto">Many of these survival-driven innovations qualify for SR&ED credits, turning necessary business adaptations into funded R&D activities.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Strategic Partnerships: The Expert Advantage</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">“Small businesses don’t have a lot of runway left. They are trying their best to absorb the costs, but if nothing changes, they will be forced to make some tough decisions,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">In this environment, businesses can’t afford to leave money on the table. The difference between a generic accounting approach and specialized R&D tax credit expertise can be substantial, if not mean the difference between survival and closure.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Working with experts who understand both the technical requirements of SR&ED and the broader business challenges facing Canadian companies becomes critical. They can help identify qualifying activities that might not be obvious during crisis management, optimize claims for maximum benefit, and ensure proper documentation that survives government scrutiny.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Path Forward: Acting Strategically</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">From SMEs to enterprises, Canadian businesses face a challenging environment, but strategic action can make the difference. Here’s what businesses should consider:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">For SMEs Under Immediate Pressure:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto">Assess current R&D activities</span></b><span data-contrast="auto"> that might qualify for SR&ED credits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Document innovation efforts</span></b><span data-contrast="auto"> related to cost reduction, process improvement, or market adaptation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Consider timing</span></b><span data-contrast="auto"> of equipment purchases and R&D projects to maximize benefits under the new rules</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Engage specialists early</span></b><span data-contrast="auto"> to ensure you’re capturing all eligible activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<h3 aria-level="3"><b><span data-contrast="none">For Mid-Market and Enterprise Companies:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto">Review innovation roadmaps</span></b><span data-contrast="auto"> in light of higher credit limits and expanded eligibility</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Assess supply chain innovations</span></b><span data-contrast="auto"> and process improvements that might qualify</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Consider the return of capital expenditure eligibility</span></b><span data-contrast="auto"> for equipment-intensive R&D</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Plan strategically</span></b><span data-contrast="auto"> around the enhanced thresholds and phase-out rules</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<h2 aria-level="2"><b><span data-contrast="none">Optimism Through Strategy</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The economic challenges facing Canadian businesses are real and immediate. The CFIB data shows an ecosystem under stress, with survival at stake for many companies. But the enhanced SR&ED program signals that the federal government recognizes the need to support innovation and competitiveness.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">“Canada can’t fix its productivity crisis without empowering its entrepreneurs,” notes the CFIB report. The enhanced innovation funding landscape, combined with strategic expertise, provides a pathway for Canadian businesses to not just survive the current crisis, but emerge stronger and more competitive.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The key is acting strategically, with expert guidance, to maximize the opportunities available while navigating the challenges ahead. For Canadian innovators willing to think strategically and work with the right partners, there’s reason for optimism – even in uncertain times.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><i><span data-contrast="auto">Ready to explore how enhanced SR&ED benefits could support your business through current challenges? The program offers more opportunities than ever, but navigating the requirements requires expertise. Connect with R&D tax credit specialists who understand both the technical requirements and the business realities facing Canadian companies today.</span></i><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/sr-ed/canadian-smes-under-pressure-how-innovation-funding-can-help-weather-the-storm/">Canadian SMEs Under Pressure: How Innovation Funding Can Help Weather the Storm</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></content:encoded>
</item>
<item>
<title>Pennsylvania R&D Tax Credits 101: Your Complete Guide to State-Level Innovation Funding</title>
<link>https://boast.ai/blog/rd/pennsylvania-rd-tax-credits-101-your-complete-guide-to-state-level-innovation-funding/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Fri, 12 Sep 2025 10:58:45 +0000</pubDate>
<category><![CDATA[Innovation Insights]]></category>
<category><![CDATA[US R&D]]></category>
<category><![CDATA[funding]]></category>
<category><![CDATA[innovation]]></category>
<category><![CDATA[Life Sciences]]></category>
<category><![CDATA[manufacturing]]></category>
<category><![CDATA[Pennsylvania]]></category>
<category><![CDATA[R&D]]></category>
<category><![CDATA[R&D Tax Credits]]></category>
<category><![CDATA[Software]]></category>
<category><![CDATA[tax credits]]></category>
<category><![CDATA[United States]]></category>
<category><![CDATA[USA]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340478</guid>
<description><![CDATA[<p>Looking to turn your innovation investments into serious tax savings? Pennsylvania's R&D tax credit program might be the opportunity you've been missing. Here's everything you need to know about maximizing both state and federal R&D credits. Pennsylvania's R&D tax credit program offers a compelling opportunity for innovative companies to reduce their state tax burden while investing [...]</p>
<p>The post <a href="https://boast.ai/blog/rd/pennsylvania-rd-tax-credits-101-your-complete-guide-to-state-level-innovation-funding/">Pennsylvania R&D Tax Credits 101: Your Complete Guide to State-Level Innovation Funding</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<p><div class="fusion-fullwidth fullwidth-box fusion-builder-row-6 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-7 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-13"><p><i><span data-contrast="auto">Looking to turn your innovation investments into serious tax savings? Pennsylvania’s R&D tax credit program might be the opportunity you’ve been missing. Here’s everything you need to know about maximizing both state and federal R&D credits.</span></i><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Pennsylvania’s R&D tax credit program offers a compelling opportunity for innovative companies to reduce their state tax burden while investing in the future of their business. Whether you’re developing new software, improving manufacturing processes, or creating the next breakthrough product, understanding how to leverage both federal and state programs can significantly impact your bottom line.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">What is Pennsylvania’s R&D Tax Credit Program?</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><a href="https://www.pa.gov/agencies/revenue/incentives-credits-and-programs/tax-credits/r&d-tax-credit-program"><span data-contrast="none">Pennsylvania’s Research & Development Tax Credit</span></a><span data-contrast="auto"> is a state incentive designed to reward businesses and individuals who invest in qualified research and development activities within the Commonwealth. The program encourages innovation by offering tax credits that can be applied against </span><i><span data-contrast="auto">Pennsylvania Corporate Net Income Tax</span></i><span data-contrast="auto"> or </span><i><span data-contrast="auto">Personal Income Tax </span></i><span data-contrast="auto">generated from a Pennsylvania business. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">The key numbers you need to know:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Credit rate:</span></b><span data-contrast="auto"> 10% of qualifying expenses that exceed your base amount (20% for qualified small businesses)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Total program cap:</span></b><span data-contrast="auto"> $60 million annually ($12 million set aside for qualified small businesses)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Carryforward period:</span></b><span data-contrast="auto"> 15 years (non-refundable)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Small business definition:</span></b><span data-contrast="auto"> Companies with assets under $5 million</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><span data-contrast="auto">The credit works on an incremental basis, meaning you receive the credit on qualified R&D expenses that exceed your historical spending baseline. </span><i><span data-contrast="auto">The goal here is to encourage companies to increase their innovation investments year over year</span></i><span data-contrast="auto">.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Who Qualifies for Pennsylvania R&D Tax Credits?</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Pennsylvania’s R&D credit eligibility mirrors many aspects of the federal program but with important state-specific requirements. To qualify, your business must meet several key criteria:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Basic Eligibility Requirements:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Conduct qualified research and development activities </span><b><span data-contrast="auto">within Pennsylvania</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Have at least two years of R&D spending history</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Be fully compliant with all state tax laws and regulations</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Maintain good standing with Pennsylvania’s tax clearance requirements</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Entity Types That Qualify:</span></b><span data-contrast="auto"> C-Corporations, S-Corporations, LLCs, and Partnerships can all apply for the credit. Pass-through entities have additional flexibility; </span><i><span data-contrast="auto">if they can’t use the full credit, they can transfer portions to shareholders, members, or partners based on their proportional ownership</span></i><span data-contrast="auto">.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">The Pennsylvania Location Requirement</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><i><span data-contrast="auto">This is part crucial</span></i></b><span data-contrast="auto">:</span><i><span data-contrast="auto"> Qualified research must take place in Pennsylvania</span></i><span data-contrast="auto">. You can’t claim Pennsylvania credits for R&D conducted in other states, even if you’re a Pennsylvania-based company. However, this requirement creates opportunities for multi-state companies to strategically locate R&D activities to maximize state-level benefits.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">What R&D Activities Qualify?</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Pennsylvania follows the federal definition of qualified research, which is broader than many companies realize. The intent behind the R&D tax credit program is to encourage innovation; </span><i><span data-contrast="auto">where it takes place doesn’t matter as much</span></i><span data-contrast="auto">. The U.S. Tax Court and </span><a href="https://revenue-pa.custhelp.com/app/answers/detail/a_id/3586/~/how-do-i-apply-for-the-pennsylvania-research-and-development-tax-credit%3F"><span data-contrast="none">other courts have ruled in favor of activities</span></a><span data-contrast="auto"> that make things faster, better, greener and more efficient.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Qualifying Activities Include:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Software development and improvement</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Manufacturing process optimization</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Product design and prototyping</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Engineering solutions to technical challenges</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Development of new formulations or materials</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Environmental and efficiency improvements</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Integration of new technologies</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Qualified Research Expenditures (QREs):</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Wages and Salaries</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span>
<ol>
<li><span data-contrast="auto">Direct R&D personnel (engineers, developers, scientists)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Support and supervisory staff assisting with R&D activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
</li>
<li><b><span data-contrast="auto">Supplies and Materials</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span>
<ol>
<li><span data-contrast="auto">Materials consumed in research (prototypes, testing components, lab supplies)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><i><span data-contrast="auto">Note: Capital equipment and general office supplies don’t qualify</span></i><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
</li>
<li><b><span data-contrast="auto">Contract Research</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span>
<ol>
<li><span data-contrast="auto">Typically 65% of payments to third-party contractors performing qualified research</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
</li>
<li><b><span data-contrast="auto">Computer and Cloud Costs</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span>
<ol>
<li><span data-contrast="auto">Rental or lease costs for computers and cloud platforms used directly in R&D</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
</li>
</ol>
<p><b><span data-contrast="auto">What Doesn’t Qualify:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Research conducted outside Pennsylvania</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Routine data collection or quality control testing</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Market research or consumer surveys</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Land, buildings, and capital equipment purchases</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">How Pennsylvania Credits Stack with Federal Benefits</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">One of the most compelling aspects of Pennsylvania’s program is how it complements federal R&D credits. Companies can claim both federal and state credits for the same qualifying activities, effectively </span><b><span data-contrast="auto">doubling their tax benefits</span></b><span data-contrast="auto">.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-7 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-8 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column">
<div class="table-1"></p>
<table width="100%">
<thead>
<tr>
<th align="left">Aspect</th>
<th align="left">Federal Credit</th>
<th align="left">Pennsylvania Credit</th>
</tr>
</thead>
<tbody>
<tr>
<td align="left"><span class="TextRun MacChromeBold SCXW161446086 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW161446086 BCX0">Credit Rate</span></span><span class="EOP SCXW161446086 BCX0" data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></td>
<td align="left">20% (simplified method)</td>
<td align="left">10% (20% for small businesses)</td>
</tr>
<tr>
<td align="left"><span class="TextRun MacChromeBold SCXW57481285 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW57481285 BCX0">Geographic Requirement</span></span><span class="EOP SCXW57481285 BCX0" data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></td>
<td align="left">U.S.-based research</td>
<td align="left"><span class="TextRun SCXW200726187 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW200726187 BCX0">Pennsylvania-based research</span></span><span class="EOP SCXW200726187 BCX0" data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></td>
</tr>
<tr>
<td align="left"><span class="TextRun MacChromeBold SCXW256016601 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW256016601 BCX0">Credit Type</span></span><span class="EOP SCXW256016601 BCX0" data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></td>
<td align="left">Incremental above base</td>
<td align="left">Incremental above base</td>
</tr>
<tr>
<td align="left"><span class="TextRun MacChromeBold SCXW86266640 BCX0" lang="EN-US" xml:lang="EN-US" data-contrast="auto"><span class="NormalTextRun SCXW86266640 BCX0">Carryforward</span></span><span class="EOP SCXW86266640 BCX0" data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></td>
<td align="left">20 years</td>
<td align="left">15 years</td>
</tr>
<tr>
<td align="left">Refundability</td>
<td align="left">Non-refundable</td>
<td align="left">Non-refundable</td>
</tr>
<tr>
<td align="left">Transferability</td>
<td align="left">No</td>
<td align="left">Yes (with approvals)</td>
</tr>
</tbody>
</table>
</div>
</div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-9 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-14"><p><b><span data-contrast="auto">Real-World Impact:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335559685":0,"335559737":0,"335559738":240,"335559739":240,"335559740":279}"> </span></p>
<p><span data-contrast="auto">A Pennsylvania company with $3.3 million in qualified R&D expenses over four years generated $359,917 in federal credits and an additional $148,750 in Pennsylvania credits. That’s nearly $150,000 in additional tax savings just from the state program—a 41% boost over federal credits alone.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The calculation method for both credits is similar, but Pennsylvania </span><b><span data-contrast="auto">requires you to </span></b><span data-contrast="auto">submit your application via a myPATH account to determine your credit amount. Since both programs use incremental calculations, companies with consistent year-over-year R&D growth see the best results.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Application Process and Key Deadlines</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Pennsylvania has streamlined its R&D credit application through the myPATH online system, making it easier than ever to apply. The process of drafting the technical narrative still requires technical expertise that deserves dedicated attention from tax professionals to ensure the time commitment bears fruit—even with program approvals in place. However, timing is critical.</span><span data-ccp-props="{}"> </span></p>
<p><b><span data-contrast="auto">Critical Dates:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Application window opens:</span></b><span data-contrast="auto"> August 1</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Application deadline:</span></b><span data-contrast="auto"> December 1</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Eligible expenses:</span></b><span data-contrast="auto"> Previous calendar year activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Application Requirements:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Completed Federal Form 6765 (as-filed) </span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">PA Form REV-545 (R&D credit calculation)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Project details for each Pennsylvania-based R&D activity</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Contractor and subcontractor information</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Prior qualified research expenses (at least one, up to four)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Step-by-Step Process:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Prepare Federal Documentation:</span></b><span data-contrast="auto"> Complete your federal R&D credit calculation first, as Pennsylvania requires your filed Form 6765.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Calculate Pennsylvania Credit:</span></b><span data-contrast="auto"> Work with tax credit professionals to draft a technical narrative, calculate claim totals and complete application. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Create myPATH Account:</span></b><span data-contrast="auto"> Sign up for a myPATH account through the Pennsylvania Department of Revenue.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Complete Application:</span></b><span data-contrast="auto"> Submit all required documentation through the online portal before December 1.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Monitor Status:</span></b><span data-contrast="auto"> Check your application status regularly through myPATH for any requests for additional information.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
</ol>
<h2 aria-level="2"><b><span data-contrast="none">The Credit Transfer Advantage</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Pennsylvania offers a unique feature that sets it apart from many state programs: Approved R&D tax credits can be sold or assigned to other taxpayers. This creates additional flexibility and potential value for your credits.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">How Credit Transfers Work:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Must receive approval from the Department of Community and Economic Development</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Requires full compliance with all state tax reporting and payment requirements</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Purchaser can apply the credit against up to 75% of their tax liability for the year</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Sale is considered a taxable transaction for income tax purposes</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Why Companies Sell Credits:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Generate immediate cash flow from tax credits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Monetize credits when current tax liability is insufficient</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Convert future tax benefits into working capital</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Pass-Through Entity Benefits:</span></b><span data-contrast="auto"> If a pass-through entity can’t use its full credit due to insufficient tax liability, it can transfer credits to shareholders, members, or partners proportionally. This ensures that credits aren’t wasted and provides maximum flexibility for different business structures.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Common Mistakes to Avoid</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Understanding potential pitfalls can help ensure your application succeeds and you maximize available benefits:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Documentation Errors:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Failing to maintain detailed project records</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Not properly tracking time allocation for mixed-use activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Inadequate support for the “process of experimentation” requirement</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Geographic Missteps:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Claiming Pennsylvania credits for out-of-state R&D activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Not properly allocating expenses between different state locations</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Timing Issues:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Missing the December 1 application deadline</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Not maintaining the required two-year spending history</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Failing to respond promptly to Department of Revenue requests</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Compliance Oversights:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Not maintaining current tax compliance status</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Inadequate record-keeping for potential audits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Mixing qualified and non-qualified activities without proper documentation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Maximizing Your R&D Credit Strategy</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">To get the most value from Pennsylvania’s R&D credit program, consider these strategic approaches:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Multi-State Planning:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Evaluate the impact of conducting R&D in Pennsylvania versus other states</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Consider establishing an R&D presence in Pennsylvania to access state credits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Coordinate federal and state credit timing for optimal cash flow</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Project Documentation:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Implement robust project tracking systems as soon as possible</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Maintain detailed records of technical challenges and solutions</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Document the experimentation and testing process clearly</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Track personnel time allocation carefully</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Growth Strategy:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Plan R&D investments to maximize incremental credits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Consider timing of major R&D initiatives to optimize credit years</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Evaluate the benefits of increasing Pennsylvania-based R&D activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Professional Support:</span></b><span data-contrast="auto"> Given the complexity of both federal and state R&D credit programs, many companies benefit from expert assistance. The right support can help you:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Identify all qualifying activities and expenses</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Maintain proper documentation for compliance</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Navigate the application process efficiently</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Maximize credit calculations through strategic planning</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Looking Ahead: The Future of Pennsylvania R&D Credits</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Pennsylvania’s R&D credit program continues to evolve, with no current sunset provision, meaning the program is permanent under current law. This stability makes it a reliable component of long-term tax planning.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Program Trends:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Increasing emphasis on technology and innovation sectors</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Growing recognition of the economic development impact</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Potential for program expansion or enhancement</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Continued focus on compliance and documentation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Strategic Implications:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Long-term R&D planning can incorporate predictable state benefits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Companies can make informed decisions about Pennsylvania R&D investments</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">The program’s permanence supports sustained innovation strategies</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Getting Started with Pennsylvania R&D Credits</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">If you’re ready to explore Pennsylvania’s R&D tax credit opportunity, here’s your action plan:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Immediate Steps:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Assessment:</span></b><span data-contrast="auto"> Review your current and planned R&D activities to identify Pennsylvania-based qualifying projects</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Documentation:</span></b><span data-contrast="auto"> Implement systems to properly track qualifying expenses and activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Federal Alignment:</span></b><span data-contrast="auto"> Ensure your federal R&D credit documentation will support Pennsylvania applications</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Professional Consultation:</span></b><span data-contrast="auto"> Consider working with R&D credit specialists who understand both federal and state requirements</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<p><b><span data-contrast="auto">Long-term Strategy:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Integrate R&D credit planning into your annual tax strategy</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Consider the location benefits of conducting R&D in Pennsylvania</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Evaluate opportunities to increase qualifying R&D investments</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Monitor program changes and optimization opportunities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">The Bottom Line</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Pennsylvania’s R&D tax credit program represents a significant opportunity for innovative companies to reduce their tax burden while investing in growth. With the ability to claim both federal and state credits for the same qualifying activities, companies can potentially achieve substantial tax savings that directly support their innovation investments.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The key to success lies in understanding the requirements, maintaining proper documentation, and integrating state credits into your broader tax and business strategy. While the program has specific compliance requirements and deadlines, the potential benefits </span><i><span data-contrast="auto">(both financial and strategic</span></i><span data-contrast="auto">) make it a valuable tool for Pennsylvania companies committed to innovation and growth.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Whether you’re a startup developing your first product or an established company expanding your R&D capabilities, Pennsylvania’s R&D credit program can help turn your innovation investments into tangible tax savings. The combination of federal and state benefits creates a powerful incentive structure that rewards companies for doing what drives long-term success: </span><i><span data-contrast="auto">Investing in the future through research and development</span></i><span data-contrast="auto">.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><i><span data-contrast="auto">Ready to maximize your R&D tax credits? Boast has partnered with hundreds of innovative businesses across North America to maximize their access to non-dilutive funding and maximize their innovation potential. Talk to one of our experts today. </span></i></p>
</div></div></div></div></div></p>
<p>The post <a href="https://boast.ai/blog/rd/pennsylvania-rd-tax-credits-101-your-complete-guide-to-state-level-innovation-funding/">Pennsylvania R&D Tax Credits 101: Your Complete Guide to State-Level Innovation Funding</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
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</item>
<item>
<title>Maximizing Innovation Capital Across Borders: The Cross-Border R&D Tax Credit Opportunity</title>
<link>https://boast.ai/blog/rd/maximizing-innovation-capital-across-borders-the-cross-border-rd-tax-credit-opportunity/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Wed, 10 Sep 2025 12:29:29 +0000</pubDate>
<category><![CDATA[Business Growth]]></category>
<category><![CDATA[SR&ED]]></category>
<category><![CDATA[US R&D]]></category>
<category><![CDATA[Canada]]></category>
<category><![CDATA[federal budget]]></category>
<category><![CDATA[Government Funding]]></category>
<category><![CDATA[growth]]></category>
<category><![CDATA[sr&ed]]></category>
<category><![CDATA[SR&ED Resources]]></category>
<category><![CDATA[strategy]]></category>
<category><![CDATA[tax credits]]></category>
<category><![CDATA[United States]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340455</guid>
<description><![CDATA[<p>For innovative companies with operations spanning both sides of the 49th parallel, there's a golden opportunity hiding in plain sight. While most businesses are familiar with either the U.S. R&D Tax Credit or Canada's Scientific Research and Experimental Development (SR&ED) program, few realize they can potentially claim both, turning their cross-border innovation efforts into a [...]</p>
<p>The post <a href="https://boast.ai/blog/rd/maximizing-innovation-capital-across-borders-the-cross-border-rd-tax-credit-opportunity/">Maximizing Innovation Capital Across Borders: The Cross-Border R&D Tax Credit Opportunity</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-8 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-10 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-15"><p><span data-contrast="auto">For innovative companies with operations spanning both sides of the 49th parallel, there’s a golden opportunity hiding in plain sight. While most businesses are familiar with either the </span><a href="https://boast.ai/solutions/rd-us-tax-credit/"><span data-contrast="none">U.S. R&D Tax Credit</span></a><span data-contrast="auto"> or </span><a href="https://boast.ai/solutions/sred/"><span data-contrast="none">Canada’s Scientific Research and Experimental Development (SR&ED) program,</span></a><span data-contrast="auto"> few realize they can potentially claim both, turning their cross-border innovation efforts into a powerful source of non-dilutive funding.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">As always, there’s the catch:</span></b><span data-contrast="auto"> Navigating both programs simultaneously can be like trying to solve a Rubik’s cube blindfolded. The complexity is real, the stakes are high, and one misstep can mean leaving hundreds of thousands of dollars on the table, if not trigger costly audits on both sides of the border.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Cross-Border Conundrum: Why Most Companies Miss the Mark</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Imagine that your development team in Toronto collaborates seamlessly with your engineers in San Francisco, building the next breakthrough in AI technology. The innovation is happening everywhere, the expenses are being incurred in both countries, and yet most companies only claim credits in one jurisdiction. Why? Because claiming R&D tax credits in both the U.S. and Canada isn’t just complicated; it’s a masterclass in regulatory navigation that most businesses simply don’t have the bandwidth to tackle.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The challenges are real and varied:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Different Definitional Frameworks</span></b><span data-contrast="auto">: What qualifies as eligible R&D activity differs significantly between countries. The U.S. focuses on the “four-part test” requiring technological uncertainty, process of experimentation, technological in nature, and useful purpose. Meanwhile, Canada’s SR&ED program emphasizes systematic investigation through experiment or analysis to resolve scientific or technological uncertainty.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Complex Allocation Requirements</span></b><span data-contrast="auto">: Companies must carefully document and allocate expenses between jurisdictions, ensuring that the same expense isn’t double-claimed while maximizing legitimate opportunities in both countries.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Varying Documentation Standards</span></b><span data-contrast="auto">: The IRS expects different supporting documentation than the Canada Revenue Agency (CRA), and the level of detail required for project descriptions, technical uncertainty explanations, and expense tracking varies considerably.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Timing and Filing Differences</span></b><span data-contrast="auto">: U.S. R&D credits are claimed annually with tax returns, while SR&ED claims in Canada have an 18-month reporting deadline from the tax year-end, creating coordination challenges for businesses operating on different fiscal calendars.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Recent Game-Changing Updates: A New Landscape Emerges</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The landscape has shifted dramatically in recent months, making cross-border claims both more attractive and more complex:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">The One Big Beautiful Bill Act: U.S. R&D Gets a Major Boost</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">President Trump’s signing of the One Big Beautiful Bill Act on July 4, 2025, marked a </span><a href="https://boast.ai/blog/rd/the-complete-guide-to-irs-form-6765-changes-what-every-rd-tax-credit-claimant-must-know-in-2025/"><span data-contrast="none">watershed moment for U.S. R&D tax policy</span></a><span data-contrast="auto">. The legislation restored immediate expensing for domestic R&D costs, ending the painful five-year amortization requirement that had been strangling innovation investments since 2022.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Key changes include:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Retroactive Relief</span></b><span data-contrast="auto">: Small Business Taxpayers (those with average annual gross receipts of $31 million or less) can file amended returns to immediately deduct 2022-2024 capitalized R&D costs and claim refunds</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Permanent Expensing</span></b><span data-contrast="auto">: Domestic R&D expenses can now be fully deducted in the year incurred, rather than amortized over five years</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Enhanced Credits</span></b><span data-contrast="auto">: The legislation includes provisions for broader R&D credit eligibility and improved cash flow for qualifying businesses</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h3 aria-level="3"><b><span data-contrast="none">Canada’s SR&ED Evolution: Draft Legislation Signals Major Changes</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">Canada isn’t standing still either. </span><a href="https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/"><span data-contrast="none">The August 2025 release of SR&ED draft legislation</span></a><span data-contrast="auto"> represents “the most substantial update to the SR&ED program in more than a decade,” with proposed changes including increasing the annual expenditure limit for the enhanced 35% investment tax credit for Canadian-Controlled Private Corporations (CCPCs) from $3 million to $4.5 million.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The proposed enhancements include:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Higher Credit Limits</span></b><span data-contrast="auto">: The expenditure limit increase would allow qualifying CCPCs to claim up to $1.575 million per year of enhanced, fully refundable investment tax credit, which is $525,000 more than under the current regime</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Expanded Eligibility</span></b><span data-contrast="auto">: New provisions to expand SR&ED eligibility to certain public companies starting with taxation years beginning on or after December 16, 2024</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Improved Thresholds</span></b><span data-contrast="auto">: Proposed increases to taxable capital phase-out thresholds from $10-50 million to $15-75 million</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">The Audit Reality: When Compliance Becomes Critical</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Here’s where things get serious. The enhanced scrutiny from both governments means that cross-border claims are increasingly likely to face audit challenges. </span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The audit risks multiply when claiming in both jurisdictions:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Coordinated Reviews</span></b><span data-contrast="auto">: Increasingly, tax authorities are sharing information and coordinating audit activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Documentation Burden</span></b><span data-contrast="auto">: You need to maintain separate, detailed records that satisfy both IRS and CRA requirements simultaneously</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Allocation Scrutiny</span></b><span data-contrast="auto">: Auditors will closely examine how expenses and activities are allocated between countries</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Technical Defense</span></b><span data-contrast="auto">: You need experts who understand both systems and can defend claims in either jurisdiction</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">The Boast Advantage: Why Cross-Border Success Requires Specialized Expertise</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">This is precisely why working with a provider like Boast is essential for cross-border success. Unlike generalist tax providers who might understand one system well, Boast’s platform and team are built specifically for navigating both U.S. R&D credits and Canadian SR&ED simultaneously.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">Unified Cross-Border Intelligence</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">Boast’s AI-driven platform continuously identifies eligible R&D work and investments throughout your product development, ensuring that activities qualifying under both programs are properly captured and allocated. This isn’t about managing two separate claims; it’s about optimizing a unified strategy that maximizes benefits in both jurisdictions while maintaining compliance standards that satisfy both the IRS and CRA.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">Built-in Audit Protection</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">Every part of Boast’s process is designed for audit confidence through our proprietary AuditShield methodology. When audits do occur, Boast provides the technical expertise and documentation depth required to defend claims in both countries.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">Real-Time Compliance Monitoring</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">With features like real-time tracking of claims, R&D investment analysis, secure data management, and a digital audit binder, Boast offers complete transparency and control, keeping you well-informed at every step. This is particularly crucial for cross-border operations where coordination between jurisdictions is essential.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Strategic Considerations: Maximizing Your Cross-Border Advantage</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">For companies considering cross-border R&D credit strategies, several key factors should guide your approach:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Project Structuring</span></b><span data-contrast="auto">: How you organize and document R&D activities can significantly impact eligibility and credit amounts in both countries. Strategic project structuring from the outset ensures maximum benefit capture.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Expense Allocation</span></b><span data-contrast="auto">: Proper allocation methodologies must satisfy both IRS and CRA requirements while optimizing total credit amounts. This requires deep understanding of both systems’ technical requirements.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Timing Optimization</span></b><span data-contrast="auto">: With different filing deadlines and reporting requirements, coordinating claim timing can maximize cash flow benefits and minimize administrative burden.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Future-Proofing</span></b><span data-contrast="auto">: As both programs continue evolving—</span><i><span data-contrast="auto">with the U.S. implementing OBBB changes and Canada’s draft legislation pending</span></i><span data-contrast="auto">—having adaptable systems and expertise becomes crucial.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Bottom Line: Cross-Border Success Requires Cross-Border Expertise</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The opportunity to leverage R&D tax incentives in both the U.S. and Canada represents one of the most significant sources of non-dilutive funding available to cross-border innovators. Most companies don’t realize that U.S. businesses can claim up to $500,000 in R&D tax credits and Canadian companies can recoup an average of 60 cents on the dollar of all qualified expenditures via SR&ED.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">But here’s the reality: This opportunity comes with complexity that demands specialized expertise. The regulatory frameworks are different, the documentation requirements are extensive, and the audit risks are significant. Success requires more than just understanding the rules. It requires a partner who can navigate both systems simultaneously while ensuring maximum compliance and benefit optimization.</span><span data-ccp-props="{"134233117":false,"134233118":false,"201341983":0,"335551550":1,"335551620":1,"335559685":0,"335559737":0,"335559738":240,"335559739":240,"335559740":279}"> </span></p>
<p><span data-contrast="auto">With recent legislative changes creating new opportunities and new complexities, the companies that will thrive are those that partner with providers who understand both sides of the border intimately. Because when it comes to cross-border R&D tax credits, you’re not just claiming incentives, but optimizing a strategic advantage that can fuel years of continued innovation and growth.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Ready to explore your cross-border R&D tax credit opportunity? The landscape has never been more favorable for companies that get it right, and the stakes have never been higher for those that don’t.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/rd/maximizing-innovation-capital-across-borders-the-cross-border-rd-tax-credit-opportunity/">Maximizing Innovation Capital Across Borders: The Cross-Border R&D Tax Credit Opportunity</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
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<item>
<title>IRS Issues New R&D Tax Deduction Guidance Under the One Big Beautiful Bill Act</title>
<link>https://boast.ai/blog/rd/irs-issues-new-rd-tax-deduction-guidance-under-the-one-big-beautiful-bill-act/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Fri, 05 Sep 2025 11:52:14 +0000</pubDate>
<category><![CDATA[Business Growth]]></category>
<category><![CDATA[US R&D]]></category>
<category><![CDATA[federal budget]]></category>
<category><![CDATA[funding]]></category>
<category><![CDATA[Government Funding]]></category>
<category><![CDATA[strategy]]></category>
<category><![CDATA[tax credit]]></category>
<category><![CDATA[tax credits]]></category>
<category><![CDATA[United States]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340446</guid>
<description><![CDATA[<p>After weeks of uncertainty following the passage of the One Big Beautiful Bill Act (OBBBA), the IRS has finally released comprehensive guidance on how businesses can handle their research and development tax deductions. Revenue Procedure 2025-28, issued on August 28, 2025, provides clear procedures for accounting method changes and elections related to research and experimental [...]</p>
<p>The post <a href="https://boast.ai/blog/rd/irs-issues-new-rd-tax-deduction-guidance-under-the-one-big-beautiful-bill-act/">IRS Issues New R&D Tax Deduction Guidance Under the One Big Beautiful Bill Act</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-9 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-11 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-16"><p><span data-contrast="auto">After weeks of uncertainty following the passage of the </span><a href="https://boast.ai/blog/what-the-one-big-beautiful-bill-means-for-your-rd-tax-credit-strategy/"><span data-contrast="none">One Big Beautiful Bill Act (OBBBA)</span></a><span data-contrast="auto">, the IRS has finally </span><a href="https://www.irs.gov/businesses/research-credit"><span data-contrast="none">released comprehensive guidance</span></a><span data-contrast="auto"> on how businesses can handle their research and development tax deductions. </span><a href="https://www.irs.gov/pub/irs-drop/rp-25-08.pdf"><span data-contrast="none">Revenue Procedure 2025-28</span></a><span data-contrast="auto">, issued on August 28, 2025, provides clear procedures for accounting method changes and elections related to research and experimental (R&E) expenditures as modified by the recently enacted One Big Beautiful Bill Act.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">If your business invests in R&D </span><i><span data-contrast="auto">(whether you’re an existing Boast customer or just learning about innovation tax incentives)</span></i><span data-contrast="auto"> this guidance creates immediate opportunities that could put serious money back in your pocket. However, </span><b><span data-contrast="auto">many of these opportunities come with tight deadlines.</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_What_Just_Changed_The_OBBBA_Backstory" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">What Just Changed? The OBBBA Backstory</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">Let’s rewind for a moment. The One Big Beautiful Bill Act, signed into law on July 4, 2025, fundamentally rewrote how businesses can treat their R&D expenses for tax purposes. Previously, under Section 174 changes from the Tax Cuts and Jobs Act, companies were required to capitalize and amortize R&D expenses over five years (15 years for foreign research) starting in 2022; a change that significantly increased tax bills and compliance burdens for innovative businesses.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">The OBBBA changed that game entirely by introducing Section 174A, which allows businesses to immediately deduct domestic R&D expenses again. But until last week, the specific procedures for claiming these benefits remained unclear.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Breaking_Down_Revenue_Procedure_202528_Your_Action_Items" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Breaking Down Revenue Procedure 2025-28: Your Action Items</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">For Small Businesses: The Retroactive Jackpot</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Here’s where things get exciting for small businesses (those with gross receipts under $31 million). Small businesses may retroactively apply OBBBA provisions to tax years beginning after December 31, 2021, meaning you can potentially recover R&D deductions from 2022, 2023, and 2024.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">The automatic election pathway:</span></b><span data-contrast="auto"> Small businesses filing timely returns on or before November 15, 2025, will be deemed to have elected OBBBA treatment if they deduct R&D expenses on the return. This is huge: </span><i><span data-contrast="auto">No complicated paperwork, just deduct your 2024 domestic R&D expenses on your return and you’re automatically in.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">But here’s the important part:</span></b><span data-contrast="auto"> If you make this election for 2024, you must also file amended returns for 2022 and 2023 to claim those years’ R&D expenses. For the 2023 taxable year, taxpayers only have until July 6, 2026, to amend their returns to apply this election.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">For All Businesses: New Flexibility Going Forward</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Starting with tax years beginning after December 31, 2024, all businesses have new options:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Immediate expensing:</span></b><span data-contrast="auto"> Deduct domestic R&D expenses in the year they’re incurred (the pre-2022 treatment we all missed)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Strategic amortization:</span></b><span data-contrast="auto"> Elect to capitalize and amortize domestic R&D expenses over a minimum 60-month period</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ol>
<p><span data-contrast="auto">Foreign SRE expenditures remain subject to 15-year amortization, so the domestic vs. foreign distinction remains critical for planning purposes.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Dealing with Past Capitalized Expenses</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Got R&D expenses that were capitalized between 2022-2024 under the old rules? The revenue procedure provides that taxpayers may “amortize any remaining unamortized amount” of domestic R&E expenditures capitalized after December 31, 2021, and before January 1, 2025. You can elect to recover these unamortized amounts either fully in 2025 or spread them over 2025 and 2026.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> <b>This applies to Small Businesses that don’t want to amend their back year returns and to businesses over the $31 million gross receipt mark. </b></span></p>
<h2 aria-level="2" id="toc_Why_This_Matters_for_Your_Business_And_Your" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Why This Matters for Your Business (And Your Cash Flow)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">This isn’t just about so much more than compliance. This new mandate enables </span><i><span data-contrast="auto">significant </span></i><span data-contrast="auto">cash flow optimization and strategic tax planning. The ability to immediately deduct R&D expenses means:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Improved cash flow:</span></b><span data-contrast="auto"> Instead of spreading deductions over multiple years, you can claim the full benefit upfront</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Simplified compliance:</span></b><span data-contrast="auto"> No more complex amortization schedules for domestic R&D</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Strategic flexibility:</span></b><span data-contrast="auto"> Choose the timing that works best for your tax situation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><span data-contrast="auto">For context, innovative businesses typically see substantial returns through R&D tax incentives. A startup with $500,000 in eligible R&D expenses could receive $50,000 or more in credits, while larger companies with $2.5 million in eligible expenses could see $250,000 in benefits.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Critical_Deadlines_Dont_Miss_These_Windows" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Critical Deadlines: Don’t Miss These Windows</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><b>September 15, 2025: </b>Automatic extension deadline for superseding 2024 returns (if your original return was filed before this date without extension) </p>
<p><b>October 15, 2025</b>: Automatic extension deadline for superseding 2024 returns for 1120 filers </p>
<p><b>November 15, 2025</b>: Deadline for small businesses to file timely 2024 returns with deemed elections </p>
<p><b>July 6, 2026</b>: Final deadline for small businesses to amend 2023 returns for retroactive application </p>
<h2 aria-level="2" id="toc_The_Bigger_Picture_OBBBAs_Innovation_Investment" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Bigger Picture: OBBBA’s Innovation Investment</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">Revenue Procedure 2025-28 represents just one piece of the OBBBA’s broader commitment to supporting American innovation. The act includes several other business-friendly provisions, from enhanced tip deductions to senior citizen benefits, but the R&D components are particularly significant for technology and innovation-driven businesses.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_What_You_Should_Do_Right_Now" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">What You Should Do Right Now</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><b><span data-contrast="auto">If you’re a small business:</span></b><span data-contrast="auto"> Review your 2022-2024 R&D expenses immediately. Calculate potential refunds from amended returns and determine whether the retroactive election makes sense for your situation. Remember, you’ll need to apply the election consistently across all applicable years.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">For all businesses:</span></b><span data-contrast="auto"> Evaluate your 2025 R&D tax strategy. With the flexibility to choose between immediate expensing and strategic amortization, consider which approach optimizes your overall tax position.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Documentation is key:</span></b><span data-contrast="auto"> Whether you’re claiming past deductions or planning future ones, maintaining robust documentation of your R&D activities remains essential. The IRS guidance doesn’t change the fundamental requirement to substantiate your claims.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Looking_Ahead_Planning_for_Success" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Looking Ahead: Planning for Success</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">While this guidance resolves immediate uncertainty around OBBBA implementation, it also opens new strategic possibilities for R&D tax planning. The interplay between R&D tax credits (Section 41) and these deduction rules (Section 174A) creates opportunities for sophisticated tax optimization.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Dont_Navigate_This_Alone" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Don’t Navigate This Alone</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">The new guidance creates meaningful opportunities, but the complexity of coordinating elections, amendments, and strategic planning shouldn’t be underestimated. Whether you’re already maximizing your R&D tax position or just discovering these incentives, having expert guidance ensures you’re capturing every dollar you’re entitled to while staying compliant with all requirements.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">The landscape of R&D tax incentives continues to evolve, but one thing remains constant: businesses that proactively manage their innovation tax strategy consistently outperform those that treat it as an afterthought. With Revenue Procedure 2025-28 now providing the roadmap, the question isn’t whether you can afford to optimize your R&D tax position—it’s whether you can afford not to.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><i><span data-contrast="auto">Ready to maximize your R&D tax benefits under the new guidance? Our team of experts can help you navigate the elections, amendments, and strategic decisions to ensure you’re capturing every opportunity. The deadlines are approaching fast, so let’s make sure you don’t leave money on the table.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/rd/irs-issues-new-rd-tax-deduction-guidance-under-the-one-big-beautiful-bill-act/">IRS Issues New R&D Tax Deduction Guidance Under the One Big Beautiful Bill Act</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
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</item>
<item>
<title>AI-Powered R&D: The Innovation Revolution That’s Recharging Business Growth</title>
<link>https://boast.ai/blog/growth/ai-powered-rd-the-innovation-revolution-thats-recharging-business-growth/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Wed, 03 Sep 2025 13:42:49 +0000</pubDate>
<category><![CDATA[Business Growth]]></category>
<category><![CDATA[Innovation Insights]]></category>
<category><![CDATA[AI]]></category>
<category><![CDATA[Artificial Intelligence]]></category>
<category><![CDATA[Canada]]></category>
<category><![CDATA[CFO]]></category>
<category><![CDATA[Government Funding]]></category>
<category><![CDATA[growth]]></category>
<category><![CDATA[R&D]]></category>
<category><![CDATA[United States]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340348</guid>
<description><![CDATA[<p>How artificial intelligence is transforming R&D productivity while unlocking unprecedented opportunities for tax credits and non-dilutive funding. Innovation has been the driving force behind human progress for centuries, from the steam engine that powered the Industrial Revolution to the vaccines that have saved millions of lives. But truly innovative R&D is getting harder and more [...]</p>
<p>The post <a href="https://boast.ai/blog/growth/ai-powered-rd-the-innovation-revolution-thats-recharging-business-growth/">AI-Powered R&D: The Innovation Revolution That’s Recharging Business Growth</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-10 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-12 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-17"><p><i><span data-contrast="auto">How artificial intelligence is transforming R&D productivity while unlocking unprecedented opportunities for tax credits and non-dilutive funding.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Innovation has been the driving force behind human progress for centuries, from the steam engine that powered the Industrial Revolution to the vaccines that have saved millions of lives. But truly innovative R&D is getting harder and more expensive, with some sectors seeing investments yield less innovation over time, creating what researchers call an “innovation slowdown.”</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">However, as with seemingly everything artificial intelligence (AI) touches, there’s a groundshift underway affecting R&D teams across North America.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><a href="https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-next-innovation-revolution-powered-by-ai"><span data-contrast="none">Recent research from McKinsey</span></a><span data-contrast="auto"> reveals that AI has the power to substantially accelerate R&D across industries that account for 80 percent of large corporate R&D spending. </span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">We’re not talking about modest improvements: </span><i><span data-contrast="auto">This is a transformation that could reshape entire sectors and unlock billions in value.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_The_Numbers_That_Will_Make_You_Rethink_Your" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Numbers That Will Make You Rethink Your R&D Strategy</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><a href="https://www.mckinsey.com/featured-insights/week-in-charts/r-and-d-recharged-by-ai"><span data-contrast="none">The McKinsey findings</span></a><span data-contrast="auto"> are nothing short of remarkable. In computer gaming, where intellectual property is paramount, AI could boost output by 150 percent. In industries closely aligned with scientific discovery, such as chemicals and pharmaceuticals, AI could enhance R&D throughput by up to 75 and more than 100 percent, respectively.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Think about that for a moment: If you’re in pharmaceuticals, AI could potentially </span><i><span data-contrast="auto">double</span></i><span data-contrast="auto"> your R&D output. In electronics, which demands multidisciplinary engineering, AI could nearly double the pace of product design, while commercial aerospace could see a 25 percent increase.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">These aren’t pie-in-the-sky projections. They’re based on real applications already being deployed across three key AI channels:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Design Generation</span></b><span data-contrast="auto">: AI creating new product concepts, molecular structures, and engineering solutions</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Research Operations</span></b><span data-contrast="auto">: AI streamlining workflows, data analysis, and experimental processes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Design Evaluation</span></b><span data-contrast="auto">: AI accelerating testing, validation, and optimization cycles</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h2 aria-level="2" id="toc_From_Nobel_Prizes_to_Practical_Applications" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">From Nobel Prizes to Practical Applications</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">The research isn’t just theoretical; it’s already producing Nobel Prize-winning results. David Baker, a researcher at the University of Washington, has led a team that uses deep learning models to design novel proteins that bind and catalyze other reactions. For leading this pioneering work, </span><a href="https://www.nobelprize.org/prizes/chemistry/2024/baker/facts/"><span data-contrast="none">Baker shared the 2024 Nobel Prize in Chemistry</span></a><span data-contrast="auto">.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Meanwhile, British AI researchers Demis Hassabis and John Jumper won the other half of the 2024 Nobel Prize in Chemistry for </span><a href="https://deepmind.google/discover/blog/demis-hassabis-john-jumper-awarded-nobel-prize-in-chemistry/"><span data-contrast="none">training a model that can predict the 3D structure of proteins</span></a><span data-contrast="auto">, which has now been used to predict the structure of around 200 million proteins, covering almost every known protein.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">These breakthroughs are part of a broader transformation where AI is revolutionizing how we approach scientific discovery and product development.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_The_Perfect_Storm_AI_Innovation_Meets_Enhanced_Tax" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Perfect Storm: AI Innovation Meets Enhanced Tax Incentives</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">Here’s where the story gets even more compelling for forward-thinking businesses. Just as AI is supercharging R&D capabilities, governments on both sides of the border are recognizing the critical importance of supporting innovation through enhanced tax incentives.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Canada’s Game-Changing SR&ED Enhancements</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">In December 2024, the </span><a href="https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/"><span data-contrast="none">Canadian government announced significant reforms to the Scientific Research and Experimental Development (SR&ED)</span></a><span data-contrast="auto"> program that will make R&D investments even more attractive. Among other enhancements, the government has pitched increasing the expenditure limit on which the enhanced 35 per cent rate can be earned from $3 million to $4.5 million. As a result, qualifying CCPCs would be able to claim up to $1.575 million per year of the enhanced, fully refundable tax credit.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Even more exciting, the government has proposed extending eligibility for the enhanced 35 percent refundable tax credit to eligible Canadian public corporations on up to $4.5 million of qualifying SR&ED expenditures. This represents a </span><i><span data-contrast="auto">massive expansion of opportunity</span></i><span data-contrast="auto"> for larger companies that were previously limited to non-refundable credits.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Perhaps most significantly, the government has suggested restoring the eligibility of capital expenditures for both the deduction against income and investment tax credit components of the SR&ED program, which could dramatically increase the value of claims for companies investing in AI infrastructure and equipment.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">United States: The Push for Immediate R&D Expensing</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Meanwhile, south of the border, there’s growing bipartisan </span><a href="https://boast.ai/blog/what-the-one-big-beautiful-bill-means-for-your-rd-tax-credit-strategy/"><span data-contrast="none">momentum to restore immediate R&D expensing</span></a><span data-contrast="auto">. The Senate’s new proposal would restore immediate expensing permanently for R&D activities performed in the United States. This would apply to costs incurred in tax years beginning after December 31, 2024.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">According to the National Association of Manufacturers (NAM), </span><a href="https://nam.org/why-manufacturers-need-immediate-rd-expensing-32196/"><span data-contrast="none">a return to immediate expensing would drive job creation</span></a><span data-contrast="auto">: 75 percent of companies’ R&D spending goes to workers’ salaries. A recent report published by NAM shows that for every $1 billion spent on R&D, 17,000 American jobs are supported.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Three_Strategic_Actions_for_Maximizing_Your_AIPowered_RD" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Three Strategic Actions for Maximizing Your AI-Powered R&D Advantage</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<ol>
<li aria-level="3">
<h3 data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none"> Audit Your Current R&D Activities Through an AI Lens</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">Start by mapping your existing R&D processes against the three AI impact channels identified in the McKinsey research. Where are you currently spending time on tasks that could be accelerated through design generation, research operations optimization, or design evaluation enhancement?</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Many companies are surprised to discover that activities they never considered “R&D” actually qualify for tax credits. This is especially true when enhanced by AI tools, which often create new qualifying activities around data analysis, algorithm development, and process optimization.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ol start="2">
<li aria-level="3">
<h3 data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none"> Develop an Integrated AI-R&D Investment Strategy</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">The convergence of AI capabilities and enhanced tax incentives creates a unique opportunity for strategic investment. Consider how you can:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Scale proven AI applications</span></b><span data-contrast="auto">: Focus on areas where your industry shows the highest potential throughput gains according to the McKinsey research</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Document systematically</span></b><span data-contrast="auto">: Ensure all AI-enhanced R&D activities are properly tracked and documented for tax credit purposes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Think cross-border</span></b><span data-contrast="auto">: With improvements in both Canadian SR&ED and potential U.S. expensing changes, consider how to optimize your R&D footprint across jurisdictions</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="3">
<li aria-level="3">
<h3 data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none"> Partner with Technology-Enabled R&D Tax Credit Specialists</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">The intersection of AI-powered R&D and evolving tax regulations is complex. The most successful companies don’t try to navigate this alone. They partner with specialists who understand both the technical nuances of qualifying activities and the regulatory landscape.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">This is where working with a tech-enabled provider like Boast becomes invaluable. Our AI-powered platform can identify qualifying R&D activities you might miss, ensure proper documentation, and optimize claims across multiple jurisdictions; all while you focus on innovation.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_The_Competitive_Advantage_Window_Is_Closing" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Competitive Advantage Window Is Closing</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">The reality is that companies that act first will gain a compounding advantage when it comes to AI and R&D. McKinsey research sizes the long-term AI opportunity at $4.4 trillion in added productivity growth potential from corporate use cases, but while nearly all companies are investing in AI, only 1 percent of leaders call their companies “mature” on the deployment spectrum.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Those early movers aren’t just getting better R&D results: They’re also maximizing their access to non-dilutive funding through enhanced tax credit programs. </span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Your_Next_Steps_From_Insight_to_Action" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Your Next Steps: From Insight to Action</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">The convergence of AI-powered R&D capabilities and enhanced tax incentives represents both an operational improvement and a major, strategic inflection point. Companies that move decisively to integrate AI into their R&D processes while maximizing access to available tax credits will build sustainable competitive advantages.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">The question isn’t whether AI will transform R&D in your industry (</span><i><span data-contrast="auto">after all, according to McKinsey’s research, it likely already is</span></i><span data-contrast="auto">). The question is whether you’ll be leading that transformation or struggling to catch up.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Ready to explore how AI can recharge your R&D efforts while maximizing your tax credit opportunities? Let’s start the conversation about turning your innovation investments into both breakthrough products and significant cash flow improvements.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">Because in the race for innovation supremacy, the companies that move first will help redefine what’s possible.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/growth/ai-powered-rd-the-innovation-revolution-thats-recharging-business-growth/">AI-Powered R&D: The Innovation Revolution That’s Recharging Business Growth</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
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<title>Quick Reference Guide 2025: Quebec CDAE Tax Credit</title>
<link>https://boast.ai/resources/guides/quick-reference-guide-2025-quebec-cdae-tax-credit/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Thu, 28 Aug 2025 19:52:04 +0000</pubDate>
<category><![CDATA[Guides & Reports]]></category>
<category><![CDATA[Resources]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340209</guid>
<description><![CDATA[<p>Use our quick-reference guide to understand the ins and outs of Revenu Quebec’s Tax Credit for the Development of E-Business (aka CDAE) and strategies to maximize access to this powerful provincial funding program. Program: Crédit d’impôt remboursable pour le développement des affaires électroniques (CDAE) Jurisdiction: Québec Administered by: Investissement Québec (certification) & Revenu Québec [...]</p>
<p>The post <a href="https://boast.ai/resources/guides/quick-reference-guide-2025-quebec-cdae-tax-credit/">Quick Reference Guide 2025: Quebec CDAE Tax Credit</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<p><div class="fusion-fullwidth fullwidth-box fusion-builder-row-11 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-13 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-18"><p>Use our quick-reference guide to understand the ins and outs of Revenu Quebec’s Tax Credit for the Development of E-Business (aka CDAE) and strategies to maximize access to this powerful provincial funding program.</p>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-14 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:50px;--awb-padding-right:30px;--awb-padding-bottom:50px;--awb-padding-left:30px;--awb-overflow:hidden;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-border-radius:8px 8px 8px 8px;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:54px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-19 fusion-text-no-margin"><p><b>Program</b>: Crédit d’impôt remboursable pour le développement des affaires électroniques (CDAE)</p>
<p><b>Jurisdiction</b>: Québec</p>
<p><b>Administered by</b>: Investissement Québec (certification) & Revenu Québec (tax credit)</p>
<p><b>Program Type</b>: Refundable tax credit providing cash refunds on eligible IT salaries</p>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-12 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-center fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-15 fusion_builder_column_1_3 1_3 fusion-flex-column" style="--awb-padding-top:50px;--awb-padding-right:27px;--awb-padding-bottom:18px;--awb-padding-left:30px;--awb-overflow:hidden;--awb-bg-color:var(--awb-color8);--awb-bg-color-hover:var(--awb-color8);--awb-bg-size:cover;--awb-border-radius:8px 8px 8px 8px;--awb-width-large:33.333333333333%;--awb-margin-top-large:0px;--awb-spacing-right-large:5.76%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:5.76%;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:5.76%;--awb-spacing-left-medium:5.76%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-13 fusion-sep-none fusion-title-text fusion-title-size-five" style="--awb-text-color:var(--awb-color5);--awb-margin-top:0px;--awb-margin-bottom:25px;--awb-margin-bottom-small:25px;"><h5 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.3;">AT A GLANCE</h5></div><div class="fusion-image-element " style="--awb-max-width:40px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-10 hover-type-none"><img decoding="async" width="579" height="579" title="icon-maximum benefit" src="https://boast.ai/wp-content/uploads/icon-maximum-benefit.svg" alt class="img-responsive wp-image-340227"/></span></div><div class="fusion-text fusion-text-20 fusion-text-no-margin" style="--awb-text-color:var(--awb-color1);--awb-margin-top:10px;--awb-margin-bottom:20px;"><p><strong><span style="color: #03c394;">Maximum Benefit</span></strong><br />
Up to $25,000 cash refund per eligible employee annually</p>
</div><div class="fusion-image-element " style="--awb-max-width:40px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-11 hover-type-none"><img decoding="async" width="666" height="666" title="icon-tax credit rate" src="https://boast.ai/wp-content/uploads/icon-tax-credit-rate.svg" alt class="img-responsive wp-image-340223"/></span></div><div class="fusion-text fusion-text-21 fusion-text-no-margin" style="--awb-text-color:var(--awb-color1);--awb-margin-top:10px;--awb-margin-bottom:20px;"><p><span style="color: #03c394;"><strong>Tax Credit Rate</strong></span><br />
30% of eligible salaries (24% refundable + 6% non-refundable in 2025)</p>
</div><div class="fusion-image-element " style="--awb-max-width:40px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-12 hover-type-none"><img decoding="async" width="741" height="741" title="icon- salary cap" src="https://boast.ai/wp-content/uploads/icon-salary-cap.svg" alt class="img-responsive wp-image-340219"/></span></div><div class="fusion-text fusion-text-22 fusion-text-no-margin" style="--awb-text-color:var(--awb-color1);--awb-margin-top:10px;--awb-margin-bottom:20px;"><p><span style="color: #03c394;"><strong>Salary Cap</strong></span><br />
$83,333 per employee (for 2025 taxation years)</p>
</div><div class="fusion-image-element " style="--awb-max-width:40px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-13 hover-type-none"><img decoding="async" width="588" height="588" title="icon-target companies" src="https://boast.ai/wp-content/uploads/icon-target-companies.svg" alt class="img-responsive wp-image-340215"/></span></div><div class="fusion-text fusion-text-23 fusion-text-no-margin" style="--awb-text-color:var(--awb-color1);--awb-margin-top:10px;--awb-margin-bottom:20px;"><p><span style="color: #03c394;"><strong>Target Companies</strong></span><br />
Quebec IT companies with 6+ technical employees</p>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-16 fusion_builder_column_2_3 2_3 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:66.666666666667%;--awb-margin-top-large:0px;--awb-spacing-right-large:2.88%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:2.88%;--awb-width-medium:66.666666666667%;--awb-order-medium:0;--awb-spacing-right-medium:2.88%;--awb-spacing-left-medium:2.88%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-14 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Company Eligibility Checklist</h2></div><ul style="--awb-size:18px;--awb-line-height:30.6px;--awb-icon-width:30.6px;--awb-icon-height:30.6px;--awb-icon-margin:12.6px;--awb-content-margin:43.2px;" class="fusion-checklist fusion-checklist-2 fusion-checklist-default type-icons"><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>Quebec Establishment<br />
</b>Physical employee presence where claimed IT work is performed</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><strong>IT Focus</strong><br />
Minimum 75% of company activities in eligible IT sectors:</p>
<ul>
<li>Software publishing and development</li>
<li>Custom software solutions</li>
<li>Data processing and hosting</li>
<li>E-business platform development</li>
</ul>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><strong>Minimum Team Size</strong><br />
6+ full-time employees in Quebec working on eligible activities</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><strong>Annual Certification</strong><br />
Investissement Québec certification required each year</p>
</div></li><li class="fusion-li-item" style="--awb-iconcolor:#ff0000;"><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-times-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content"><strong>Excluded Companies</strong></p>
<ul>
<li>Crown corporations and wholly-controlled subsidiaries</li>
<li>Companies with <75% IT activities</li>
<li>Hardware manufacturers or assemblers</li>
</ul>
</div></li></ul></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-13 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-17 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:43px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-15 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Employee Eligibility Requirements</h2></div><div class="fusion-title title fusion-title-16 fusion-sep-none fusion-title-text fusion-title-size-three"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Must Meet ALL Criteria:</h3></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-18 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-content-boxes content-boxes columns row fusion-columns-2 fusion-columns-total-5 fusion-content-boxes-1 content-boxes-icon-on-side content-left has-flex-alignment" style="--awb-alignment:stretch;--awb-item-margin-bottom:10px;--awb-margin-bottom:0px;--awb-hover-accent-color:var(--awb-color8);--awb-circle-hover-accent-color:transparent;" data-animationOffset="top-into-view"><div style="--awb-backgroundcolor:rgba(255,255,255,0);--awb-content-padding-left:70px;" class="fusion-column content-box-column content-box-column content-box-column-1 col-lg-6 col-md-6 col-sm-6 fusion-content-box-hover content-box-column-first-in-row"><div class="col content-box-wrapper content-wrapper link-area-link-icon content-icon-wrapper-yes icon-hover-animation-fade" data-animationOffset="top-into-view"><div class="heading heading-with-icon icon-left"><div aria-hidden="true" class="image"><img decoding="async" src="https://boast.ai/wp-content/uploads/icons-cdae-_work-location.svg" width="50" height="50" alt="" /></div><h4 class="content-box-heading fusion-responsive-typography-calculated" style="--h4_typography-font-size:20px;--fontSize:20;line-height:1.4;padding-left:70px;">Work Location </h4></div><div class="fusion-clearfix"></div><div class="content-container">
<p>Reports to Quebec establishment</p>
</div></div></div><div style="--awb-backgroundcolor:rgba(255,255,255,0);--awb-content-padding-left:70px;" class="fusion-column content-box-column content-box-column content-box-column-2 col-lg-6 col-md-6 col-sm-6 fusion-content-box-hover content-box-column-last-in-row"><div class="col content-box-wrapper content-wrapper link-area-link-icon content-icon-wrapper-yes icon-hover-animation-fade" data-animationOffset="top-into-view"><div class="heading heading-with-icon icon-left"><div aria-hidden="true" class="image"><img decoding="async" src="https://boast.ai/wp-content/uploads/icons-cdae-_time-commitment.svg" width="50" height="50" alt="" /></div><h4 class="content-box-heading fusion-responsive-typography-calculated" style="--h4_typography-font-size:20px;--fontSize:20;line-height:1.4;padding-left:70px;">Time Commitment </h4></div><div class="fusion-clearfix"></div><div class="content-container">
<p>Minimum 26 hours/week on eligible IT activities</p>
</div></div></div><div style="--awb-backgroundcolor:rgba(255,255,255,0);--awb-content-padding-left:70px;" class="fusion-column content-box-column content-box-column content-box-column-3 col-lg-6 col-md-6 col-sm-6 fusion-content-box-hover content-box-column-first-in-row"><div class="col content-box-wrapper content-wrapper link-area-link-icon content-icon-wrapper-yes icon-hover-animation-fade" data-animationOffset="top-into-view"><div class="heading heading-with-icon icon-left"><div aria-hidden="true" class="image"><img decoding="async" src="https://boast.ai/wp-content/uploads/icons-cdae-_role-type.svg" width="50" height="50" alt="" /></div><h4 class="content-box-heading fusion-responsive-typography-calculated" style="--h4_typography-font-size:20px;--fontSize:20;line-height:1.4;padding-left:70px;">Role Type </h4></div><div class="fusion-clearfix"></div><div class="content-container">
<p>Technical or directly related management positions</p>
</div></div></div><div style="--awb-backgroundcolor:rgba(255,255,255,0);--awb-content-padding-left:70px;" class="fusion-column content-box-column content-box-column content-box-column-4 col-lg-6 col-md-6 col-sm-6 fusion-content-box-hover content-box-column-last-in-row"><div class="col content-box-wrapper content-wrapper link-area-link-icon content-icon-wrapper-yes icon-hover-animation-fade" data-animationOffset="top-into-view"><div class="heading heading-with-icon icon-left"><div aria-hidden="true" class="image"><img decoding="async" src="https://boast.ai/wp-content/uploads/icons-cdae-_ownership-restriction.svg" width="50" height="50" alt="" /></div><h4 class="content-box-heading fusion-responsive-typography-calculated" style="--h4_typography-font-size:20px;--fontSize:20;line-height:1.4;padding-left:70px;">Ownership Restriction </h4></div><div class="fusion-clearfix"></div><div class="content-container">
<p>Cannot own 10%+ of company shares</p>
</div></div></div><div style="--awb-backgroundcolor:rgba(255,255,255,0);--awb-content-padding-left:70px;" class="fusion-column content-box-column content-box-column content-box-column-5 col-lg-6 col-md-6 col-sm-6 fusion-content-box-hover content-box-column-first-in-row content-box-column-last"><div class="col content-box-wrapper content-wrapper link-area-link-icon content-icon-wrapper-yes icon-hover-animation-fade" data-animationOffset="top-into-view"><div class="heading heading-with-icon icon-left"><div aria-hidden="true" class="image"><img decoding="async" src="https://boast.ai/wp-content/uploads/icons-cdae-_certification.svg" width="50" height="50" alt="" /></div><h4 class="content-box-heading fusion-responsive-typography-calculated" style="--h4_typography-font-size:20px;--fontSize:20;line-height:1.4;padding-left:70px;">Certification</h4></div><div class="fusion-clearfix"></div><div class="content-container">
<p>Individual employee certification from Investissement Québec required</p>
</div></div></div><div class="fusion-clearfix"></div></div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-14 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:25px;--awb-margin-top:14px;--awb-margin-bottom:56px;--awb-background-color:var(--awb-color2);--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-19 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-17 fusion-sep-none fusion-title-text fusion-title-size-three"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Eligible Roles Examples:</h3></div><div class="fusion-text fusion-text-24 awb-text-cols fusion-text-columns-2" style="--awb-columns:2;--awb-column-spacing:2em;--awb-column-min-width:100px;"><ul>
<li>Software developers and engineers</li>
<li>Systems analysts and architects</li>
<li>QA specialists and testers</li>
<li>Technical project managers</li>
<li>Database administrators</li>
</ul>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-15 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-20 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-18 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Eligible vs. Non-Eligible Activities</h2></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-21 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column">
<div class="table-1">
<table width="100%">
<thead>
<tr>
<th style="text-align: center;" align="center"><i class="fb-icon-element-1 fb-icon-element fontawesome-icon fa-check-circle fas circle-no fusion-text-flow" style="--awb-iconcolor:var(--awb-color5);--awb-font-size:26px;--awb-margin-right:13px;"></i>COUNTS FOR CDAE</th>
<th style="text-align: center;" align="center"><i class="fb-icon-element-2 fb-icon-element fontawesome-icon fa-times-circle fas circle-no fusion-text-flow" style="--awb-iconcolor:#ff0000;--awb-font-size:26px;--awb-margin-right:13px;"></i>DOES NOT COUNT</th>
</tr>
</thead>
<tbody>
<tr>
<td align="center" valign="center">Software design, coding, testing, implementation</td>
<td align="center" valign="center">Administrative work, sales, customer service</td>
</tr>
<tr>
<td align="center" valign="center">System integration and maintenance</td>
<td align="center" valign="center">Hardware manufacturing or assembly/td></td>
</tr>
<tr>
<td align="center" valign="center">Database design and real-time data processing</td>
<td align="center" valign="center">Basic website content updates (non-programming)</td>
</tr>
<tr>
<td align="center" valign="center">Technical support for proprietary software products</td>
<td align="center" valign="center">General research unrelated to software products</td>
</tr>
<tr>
<td align="center" valign="center">E-commerce platform development</td>
<td align="center" valign="center">Marketing or promotional activities</td>
</tr>
</tbody>
</table>
</div>
</div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-16 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-22 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-19 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Credit Calculation Examples</h2></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-23 fusion_builder_column_1_2 1_2 fusion-flex-column" style="--awb-bg-size:cover;--awb-border-color:var(--awb-color8);--awb-border-top:1px;--awb-border-right:1px;--awb-border-bottom:1px;--awb-border-left:1px;--awb-border-style:solid;--awb-width-large:50%;--awb-margin-top-large:0px;--awb-spacing-right-large:3.84%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:3.84%;--awb-width-medium:50%;--awb-order-medium:0;--awb-spacing-right-medium:3.84%;--awb-spacing-left-medium:3.84%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-8 fusion_builder_column_inner_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:20px;--awb-padding-bottom:20px;--awb-padding-left:20px;--awb-bg-color:var(--awb-color8);--awb-bg-color-hover:var(--awb-color8);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-20 fusion-sep-none fusion-title-text fusion-title-size-five" style="--awb-text-color:var(--awb-color5);--awb-margin-top:0px;--awb-margin-bottom:5px;"><h5 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.3;">EXAMPLE 1</h5></div><div class="fusion-text fusion-text-25 fusion-text-no-margin" style="--awb-text-color:var(--awb-color1);"><p>Developer earning $75,000</p>
</div></div></div></div><div class="fusion-text fusion-text-26" style="--awb-margin-right:20px;--awb-margin-left:20px;"><p>Eligible salary: $75,000</p>
<p>Credit: $75,000 × 30% =<span style="color: var(--awb-color5);"> $22,500 cash refund</span></p>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-24 fusion_builder_column_1_2 1_2 fusion-flex-column" style="--awb-bg-size:cover;--awb-border-color:var(--awb-color8);--awb-border-top:1px;--awb-border-right:1px;--awb-border-bottom:1px;--awb-border-left:1px;--awb-border-style:solid;--awb-width-large:50%;--awb-margin-top-large:0px;--awb-spacing-right-large:3.84%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:3.84%;--awb-width-medium:50%;--awb-order-medium:0;--awb-spacing-right-medium:3.84%;--awb-spacing-left-medium:3.84%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-9 fusion_builder_column_inner_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:20px;--awb-padding-bottom:20px;--awb-padding-left:20px;--awb-bg-color:var(--awb-color8);--awb-bg-color-hover:var(--awb-color8);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-21 fusion-sep-none fusion-title-text fusion-title-size-five" style="--awb-text-color:var(--awb-color5);--awb-margin-top:0px;--awb-margin-bottom:5px;"><h5 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.3;">EXAMPLE 2</h5></div><div class="fusion-text fusion-text-27 fusion-text-no-margin" style="--awb-text-color:var(--awb-color1);"><p>Senior developer earning $100,000</p>
</div></div></div></div><div class="fusion-text fusion-text-28" style="--awb-margin-right:20px;--awb-margin-left:20px;"><p>Salary capped at: $83,333</p>
<p>Credit: $83,333 × 30% = <span style="color: var(--awb-color5);">$25,000 cash refund</span></p>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-17 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:20px;--awb-padding-right:20px;--awb-padding-bottom:20px;--awb-padding-left:20px;--awb-background-color:var(--awb-color2);--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-center fusion-flex-justify-content-center fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-25 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100px;--awb-margin-top-large:0px;--awb-spacing-right-large:2%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:2%;--awb-width-medium:100px;--awb-order-medium:0;--awb-spacing-right-medium:2%;--awb-spacing-left-medium:2%;--awb-width-small:20%;--awb-order-small:0;--awb-spacing-right-small:9.6%;--awb-spacing-left-small:9.6%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="--awb-max-width:70px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-14 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae team impact" src="https://boast.ai/wp-content/uploads/icons-cdae-team-impact.svg" alt class="img-responsive wp-image-340267"/></span></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-26 fusion_builder_column_5_6 5_6 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:83.333333333333%;--awb-margin-top-large:0px;--awb-spacing-right-large:2.304%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:0%;--awb-width-medium:83.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:2.304%;--awb-spacing-left-medium:0%;--awb-width-small:80%;--awb-order-small:0;--awb-spacing-right-small:2.4%;--awb-spacing-left-small:0%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-22 fusion-sep-none fusion-title-text fusion-title-size-five" style="--awb-text-color:var(--awb-color5);--awb-margin-bottom:5px;"><h5 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.3;">TEAM IMPACT</h5></div><div class="fusion-text fusion-text-29 fusion-text-no-margin"><p>Company with 8 eligible employees can receive up to $200,000 annually</p>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-18 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-27 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:30px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-23 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Application Process</h2></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-28 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:21px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-15 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae _step 1" src="https://boast.ai/wp-content/uploads/icons-cdae-_step-1.svg" alt class="img-responsive wp-image-340285"/></span></div><div class="fusion-text fusion-text-30 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Step 1: Pre-Qualification Assessment (Before fiscal year-end)</b></p>
<ul>
<li>Verify 75% IT activity threshold</li>
<li>Confirm 6+ eligible employee requirement</li>
<li>Review employee role eligibility</li>
</ul>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-29 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:26px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-16 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae _step 2" src="https://boast.ai/wp-content/uploads/icons-cdae-_step-2.svg" alt class="img-responsive wp-image-340281"/></span></div><div class="fusion-text fusion-text-31 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Step 2: Obtain Certifications (Within 15 months of fiscal year-end)</b></p>
<ul>
<li><b>Company certification</b> from Investissement Québec</li>
<li><b>Individual employee certifications</b> for each eligible worker</li>
<li>Submit supporting documentation on activities and roles within 15 months of completion</li>
<li>Pay fee based on amount of employee claimed</li>
</ul>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-30 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:60px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-17 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae _step 3" src="https://boast.ai/wp-content/uploads/icons-cdae-_step-3.svg" alt class="img-responsive wp-image-340277"/></span></div><div class="fusion-text fusion-text-32 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Step 3: File Tax Credit Claim (With corporate tax return)</b></p>
<ul>
<li>Complete Form CO-1029.8.36.DA for each eligible employee</li>
<li>Include all Investissement Québec certifications</li>
<li>File with Québec corporate tax return (CO-17)</li>
</ul>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-31 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:60px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-right-small:200px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-18 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae _step 4" src="https://boast.ai/wp-content/uploads/icons-cdae-_step-4.svg" alt class="img-responsive wp-image-340273"/></span></div><div class="fusion-text fusion-text-33 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Step 4: Receive Refund (Typically 3-6 months)</b></p>
<ul>
<li>Revenu Québec reviews and processes claim</li>
<li>Cash refund issued directly to company</li>
</ul>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-19 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-stretch fusion-flex-content-wrap" style="max-width:calc( 1380px + 40px );margin-left: calc(-40px / 2 );margin-right: calc(-40px / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-32 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:30px;--awb-spacing-right-large:20px;--awb-margin-bottom-large:65px;--awb-spacing-left-large:20px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:20px;--awb-spacing-left-medium:20px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:20px;--awb-spacing-left-small:20px;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-24 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Critical Deadlines</h2></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-33 fusion_builder_column_1_3 1_3 fusion-flex-column" style="--awb-padding-right:20px;--awb-padding-bottom:20px;--awb-padding-left:20px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-border-color:var(--awb-color5);--awb-border-bottom:5px;--awb-border-style:solid;--awb-width-large:33.333333333333%;--awb-margin-top-large:0px;--awb-spacing-right-large:20px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:20px;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:20px;--awb-spacing-left-medium:20px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:20px;--awb-margin-bottom-small:65px;--awb-spacing-left-small:20px;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="text-align:center;--awb-margin-top:-30px;--awb-margin-bottom:30px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-19 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae _certification" src="https://boast.ai/wp-content/uploads/icons-cdae-_certification.svg" alt class="img-responsive wp-image-340241"/></span></div><div class="fusion-text fusion-text-34"><p style="text-align: center;"><b>Certification Deadline<br />
</b>15 months<br />
after fiscal year-end</p>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-34 fusion_builder_column_1_3 1_3 fusion-flex-column" style="--awb-padding-right:20px;--awb-padding-bottom:20px;--awb-padding-left:20px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-border-color:var(--awb-color5);--awb-border-bottom:5px;--awb-border-style:solid;--awb-width-large:33.333333333333%;--awb-margin-top-large:0px;--awb-spacing-right-large:20px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:20px;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:20px;--awb-spacing-left-medium:20px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:20px;--awb-margin-bottom-small:65px;--awb-spacing-left-small:20px;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="text-align:center;--awb-margin-top:-30px;--awb-margin-bottom:30px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-20 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae_tax filing deadline" src="https://boast.ai/wp-content/uploads/icons-cdae_tax-filing-deadline.svg" alt class="img-responsive wp-image-340295"/></span></div><div class="fusion-text fusion-text-35"><p style="text-align: center;"><strong>Tax Filing Deadline</strong><br />
The last day of 18 month after fiscal year or 3 month after the reception of the certificates</p>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-35 fusion_builder_column_1_3 1_3 fusion-flex-column" style="--awb-padding-right:20px;--awb-padding-bottom:20px;--awb-padding-left:20px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-border-color:var(--awb-color5);--awb-border-bottom:5px;--awb-border-style:solid;--awb-width-large:33.333333333333%;--awb-margin-top-large:0px;--awb-spacing-right-large:20px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:20px;--awb-width-medium:33.333333333333%;--awb-order-medium:0;--awb-spacing-right-medium:20px;--awb-spacing-left-medium:20px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:20px;--awb-margin-bottom-small:0px;--awb-spacing-left-small:20px;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="text-align:center;--awb-margin-top:-30px;--awb-margin-bottom:30px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-21 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae_documentation deadline" src="https://boast.ai/wp-content/uploads/icons-cdae_documentation-deadline.svg" alt class="img-responsive wp-image-340291"/></span></div><div class="fusion-text fusion-text-36"><p style="text-align: center;"><strong>Documentation Deadline</strong><br />
Must be received by latest of 12 months after CO-17 deadline OR 3 months after certificate issuance</p>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-20 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-stretch fusion-flex-content-wrap" style="max-width:calc( 1380px + 40px );margin-left: calc(-40px / 2 );margin-right: calc(-40px / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-36 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:30px;--awb-spacing-right-large:20px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:20px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:20px;--awb-spacing-left-medium:20px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:20px;--awb-spacing-left-small:20px;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-25 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Documentation Requirements</h2></div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-21 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:25px;--awb-margin-top:17px;--awb-margin-bottom:40px;--awb-background-color:var(--awb-color2);--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-37 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-26 fusion-sep-none fusion-title-text fusion-title-size-four"><h4 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.4;">Essential Records to Maintain:</h4></div><ul style="--awb-line-height:27.2px;--awb-icon-width:27.2px;--awb-icon-height:27.2px;--awb-icon-margin:11.2px;--awb-content-margin:38.4px;" class="fusion-checklist fusion-checklist-3 fusion-checklist-default type-icons"><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p>Detailed payroll records for eligible employees</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p>Time tracking showing 26+ hours/week on eligible activities</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p>Job descriptions clearly defining technical roles</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p>Project documentation linking work to eligible IT activities</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p>Investissement Québec certification documents</p>
</div></li></ul></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-22 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:30px;--awb-padding-right:30px;--awb-padding-bottom:30px;--awb-padding-left:30px;--awb-background-color:var(--awb-color8);--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-38 fusion_builder_column_1_5 1_5 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:20%;--awb-margin-top-large:13px;--awb-spacing-right-large:9.6%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:9.6%;--awb-width-medium:20%;--awb-order-medium:0;--awb-spacing-right-medium:9.6%;--awb-spacing-left-medium:9.6%;--awb-width-small:25%;--awb-order-small:0;--awb-spacing-right-small:7.68%;--awb-margin-bottom-small:25px;--awb-spacing-left-small:7.68%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="--awb-max-width:120px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-22 hover-type-none"><img decoding="async" width="666" height="666" title="icon-tax credit rate" src="https://boast.ai/wp-content/uploads/icon-tax-credit-rate.svg" alt class="img-responsive wp-image-340223"/></span></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-39 fusion_builder_column_4_5 4_5 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:80%;--awb-margin-top-large:0px;--awb-spacing-right-large:2.4%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:2.4%;--awb-width-medium:80%;--awb-order-medium:0;--awb-spacing-right-medium:2.4%;--awb-spacing-left-medium:2.4%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-27 fusion-sep-none fusion-title-text fusion-title-size-five" style="--awb-text-color:var(--awb-color5);"><h5 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.3;">AUDIT PREPARATION</h5></div><ul style="--awb-textcolor:var(--awb-color1);--awb-line-height:27.2px;--awb-icon-width:27.2px;--awb-icon-height:27.2px;--awb-icon-margin:11.2px;--awb-content-margin:38.4px;" class="fusion-checklist fusion-checklist-4 fusion-checklist-default type-icons"><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">Separate eligible from non-eligible work in project tracking</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">Maintain detailed activity logs and task assignments</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">Document technical nature of work performed</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">Keep certification correspondence and approvals</div></li></ul></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-23 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-40 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:30px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-28 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Strategic Considerations</h2></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-41 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:21px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-23 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae_program stacking" src="https://boast.ai/wp-content/uploads/icons-cdae_program-stacking.svg" alt class="img-responsive wp-image-340312"/></span></div><div class="fusion-text fusion-text-37 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Program Stacking Opportunities:</b></p>
<ul>
<li>Can be combined with federal SR&ED (with proper coordination)</li>
<li>Eligible activities may qualify for both programs</li>
</ul>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-42 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:26px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-24 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae_key restrictions" src="https://boast.ai/wp-content/uploads/icons-cdae_key-restrictions.svg" alt class="img-responsive wp-image-340308"/></span></div><div class="fusion-text fusion-text-38 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Key Restrictions:</b></p>
<ul>
<li>Cannot double-claim same expenses under multiple Quebec programs</li>
<li>Government assistance reduces eligible expenditures</li>
<li>Work for government entities has special calculation rules</li>
</ul>
</div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-43 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-padding-top:20px;--awb-padding-right:60px;--awb-padding-bottom:20px;--awb-padding-left:30px;--awb-padding-right-medium:25px;--awb-padding-right-small:22px;--awb-bg-color:var(--awb-color2);--awb-bg-color-hover:var(--awb-color2);--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:50px;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:40px;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-row"><div class="fusion-image-element sm-text-align-center" style="--awb-margin-right:30px;--awb-margin-left:-60px;--awb-margin-left-small:0px;--awb-max-width:60px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-25 hover-type-none"><img decoding="async" width="334" height="334" title="icons-cdae_optimization tips" src="https://boast.ai/wp-content/uploads/icons-cdae_optimization-tips.svg" alt class="img-responsive wp-image-340304"/></span></div><div class="fusion-text fusion-text-39 fusion-text-no-margin" style="--awb-margin-top:10px;"><p><b>Optimization Tips:</b></p>
<ul>
<li>Plan employee roles to meet 26-hour minimum consistently</li>
<li>Structure projects to maintain 75% IT activity threshold</li>
<li>Time salary increases to maximize annual $25,000 caps</li>
<li>Coordinate with federal SR&ED for maximum benefit</li>
</ul>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-24 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-44 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:30px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-title title fusion-title-29 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">Quick Qualification Assessment</h2></div><div class="fusion-title title fusion-title-30 fusion-sep-none fusion-title-text fusion-title-size-three"><h3 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:24;line-height:1.3;">Answer these questions to determine likely eligibility:</h3></div><div class="fusion-form fusion-form-builder fusion-form-form-wrapper fusion-form-340323" style="--awb-tooltip-text-color:#ffffff;--awb-tooltip-background-color:#333333;" data-form-id="340323" data-config="{"form_id":340323,"form_post_id":340323,"post_id":340209,"form_type":"ajax","confirmation_type":"message","redirect_url":"","field_labels":{"full-time_technical_employees_in_quebec_":"Do you have a Quebec establishment where IT work is performed? ","Is 75%+ of your revenue on software development or IT eligible work? ":"Is 75%+ of your revenue on software development or IT eligible work? "},"field_logics":{"full-time_technical_employees_in_quebec_":"","Is 75%+ of your revenue on software development or IT eligible work? ":""},"field_types":{"full-time_technical_employees_in_quebec_":"radio","Is 75%+ of your revenue on software development or IT eligible work? ":"radio"},"nonce_method":"ajax"}"><form action="https://boast.ai/resources/guides/quick-reference-guide-2025-quebec-cdae-tax-credit/" method="post" class="fusion-form fusion-form-340323"><div class="fusion-fullwidth fullwidth-box fusion-builder-row-24-1 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-top:0px;--awb-padding-right:0px;--awb-padding-bottom:0px;--awb-padding-left:0px;--awb-margin-top:0px;--awb-margin-bottom:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="width:104% !important;max-width:104% !important;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-45 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;" data-scroll-devices="small-visibility,medium-visibility,large-visibility"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-form-field fusion-form-radio-field fusion-form-label-above" style="" data-form-id="340323"><div class="fusion-form-label-wrapper"><span class="label">Do you have 6+ full-time technical employees in Quebec? </span></div><fieldset><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-full-time_technical_employees_in_quebec_-1-0" type="radio" value="Yes" name="full-time_technical_employees_in_quebec_" class="fusion-form-input" data-holds-private-data="false"/><label for="radio-full-time_technical_employees_in_quebec_-1-0">Yes</label></div><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-full-time_technical_employees_in_quebec_-1-1" type="radio" value="No" name="full-time_technical_employees_in_quebec_" class="fusion-form-input" data-holds-private-data="false"/><label for="radio-full-time_technical_employees_in_quebec_-1-1">No</label></div></fieldset></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-46 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;" data-scroll-devices="small-visibility,medium-visibility,large-visibility"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-form-field fusion-form-radio-field fusion-form-label-above" style="" data-form-id="340323"><div class="fusion-form-label-wrapper"><span class="label">Is 75%+ of your revenue on software development or IT eligible work? </span></div><fieldset><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-is-75%+-of-your-revenue-on-software-development-or-it-eligible-work?--2-0" type="radio" value="Yes" name="Is 75%+ of your revenue on software development or IT eligible work? " class="fusion-form-input" data-holds-private-data="false"/><label for="radio-is-75%+-of-your-revenue-on-software-development-or-it-eligible-work?--2-0">Yes</label></div><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-is-75%+-of-your-revenue-on-software-development-or-it-eligible-work?--2-1" type="radio" value="No" name="Is 75%+ of your revenue on software development or IT eligible work? " class="fusion-form-input" data-holds-private-data="false"/><label for="radio-is-75%+-of-your-revenue-on-software-development-or-it-eligible-work?--2-1">No</label></div></fieldset></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-47 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;" data-scroll-devices="small-visibility,medium-visibility,large-visibility"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-form-field fusion-form-radio-field fusion-form-label-above" style="" data-form-id="340323"><div class="fusion-form-label-wrapper"><span class="label">Do employees spend 26+ hours/week on software development/IT work?</span></div><fieldset><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-full-time_technical_employees_in_quebec_-3-0" type="radio" value="Yes" name="full-time_technical_employees_in_quebec_" class="fusion-form-input" data-holds-private-data="false"/><label for="radio-full-time_technical_employees_in_quebec_-3-0">Yes</label></div><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-full-time_technical_employees_in_quebec_-3-1" type="radio" value="No" name="full-time_technical_employees_in_quebec_" class="fusion-form-input" data-holds-private-data="false"/><label for="radio-full-time_technical_employees_in_quebec_-3-1">No</label></div></fieldset></div></div></div><div class="fusion-layout-column fusion_builder_column fusion-builder-column-48 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;" data-scroll-devices="small-visibility,medium-visibility,large-visibility"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-form-field fusion-form-radio-field fusion-form-label-above" style="" data-form-id="340323"><div class="fusion-form-label-wrapper"><span class="label">Do you have a Quebec establishment where IT work is performed? </span></div><fieldset><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-full-time_technical_employees_in_quebec_-4-0" type="radio" value="Yes" name="full-time_technical_employees_in_quebec_" class="fusion-form-input" data-holds-private-data="false"/><label for="radio-full-time_technical_employees_in_quebec_-4-0">Yes</label></div><div class="fusion-form-radio option-inline"><input tabindex="" id="radio-full-time_technical_employees_in_quebec_-4-1" type="radio" value="No" name="full-time_technical_employees_in_quebec_" class="fusion-form-input" data-holds-private-data="false"/><label for="radio-full-time_technical_employees_in_quebec_-4-1">No</label></div></fieldset></div></div></div></div></div><input type="hidden" name="fusion_privacy_store_ip_ua" value="false"><input type="hidden" name="fusion_privacy_expiration_interval" value="48"><input type="hidden" name="privacy_expiration_action" value="anonymize"></form></div><div class="fusion-title title fusion-title-31 fusion-sep-none fusion-title-text fusion-title-size-four"><h4 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:18;--minFontSize:18;line-height:1.4;">If you answered “Yes” to all four questions, you likely qualify for CDAE.</h4></div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-25 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-padding-right:0px;--awb-padding-left:0px;--awb-margin-top:37px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-49 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:30px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-image-element " style="--awb-margin-bottom:40px;--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);"><span class=" fusion-imageframe imageframe-none imageframe-26 hover-type-none" style="border-radius:12px;"><img decoding="async" width="720" height="284" title="cdae quebec" src="https://boast.ai/wp-content/uploads/cdae-quebec.jpg" alt class="img-responsive wp-image-340318" srcset="https://boast.ai/wp-content/uploads/cdae-quebec-200x79.jpg 200w, https://boast.ai/wp-content/uploads/cdae-quebec-400x158.jpg 400w, https://boast.ai/wp-content/uploads/cdae-quebec-600x237.jpg 600w, https://boast.ai/wp-content/uploads/cdae-quebec.jpg 720w" sizes="(max-width: 640px) 100vw, 720px" /></span></div><div class="fusion-title title fusion-title-32 fusion-sep-none fusion-title-text fusion-title-size-two"><h2 class="fusion-title-heading title-heading-left fusion-responsive-typography-calculated" style="margin:0;--fontSize:36;line-height:var(--awb-typography1-line-height);">2025 Program Status</h2></div><ul style="--awb-line-height:27.2px;--awb-icon-width:27.2px;--awb-icon-height:27.2px;--awb-icon-margin:11.2px;--awb-content-margin:38.4px;" class="fusion-checklist fusion-checklist-5 fusion-checklist-default type-icons"><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><b>Current Program:<br />
</b>CDAE remains active for all 2025 taxation years</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><strong>Future Changes:</strong><br />
CDAEIA (AI-focused version) begins for taxation years starting after December 31, 2025</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><strong>Planning Recommendation:<br />
</strong> Maximize CDAE benefits in 2025 while preparing for CDAEIA transition</p>
</div></li><li class="fusion-li-item" style=""><span class="icon-wrapper circle-no"><i class="fusion-li-icon fa-check-circle fas" aria-hidden="true"></i></span><div class="fusion-li-item-content">
<p><strong>Next Steps:</strong><br />
Contact a qualified advisor to assess your specific situation and begin the certification process for maximum 2025 benefits.</p>
</div></li></ul><div class="fusion-text fusion-text-40" style="--awb-margin-top:80px;"><p><i>This data sheet covers the current CDAE program. For information about the upcoming CDAEIA transition and strategic planning across multiple government funding programs, consult with Boast’s R&D tax credit specialists.</i></p>
</div></div></div></div></div></p>
<p>The post <a href="https://boast.ai/resources/guides/quick-reference-guide-2025-quebec-cdae-tax-credit/">Quick Reference Guide 2025: Quebec CDAE Tax Credit</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></content:encoded>
</item>
<item>
<title>The Complete Guide to IRS Form 6765 Changes: What Every R&D Tax Credit Claimant Must Know in 2025</title>
<link>https://boast.ai/blog/rd/the-complete-guide-to-irs-form-6765-changes-what-every-rd-tax-credit-claimant-must-know-in-2025/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Tue, 26 Aug 2025 18:50:23 +0000</pubDate>
<category><![CDATA[Innovation Insights]]></category>
<category><![CDATA[US R&D]]></category>
<category><![CDATA[For 6765]]></category>
<category><![CDATA[irs]]></category>
<category><![CDATA[One Big Beautiful Bill]]></category>
<category><![CDATA[R&D]]></category>
<category><![CDATA[Section 174]]></category>
<category><![CDATA[tax credits]]></category>
<category><![CDATA[United States]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340158</guid>
<description><![CDATA[<p>TL;DR: The IRS has rolled out the most significant Form 6765 overhaul in over a decade, introducing three new sections that require project-level detail, business component breakdowns, and compliance-ready documentation. While Section G is optional for 2024, it becomes mandatory for the 2025 tax year for certain businesses. As a result, the compliance burden is [...]</p>
<p>The post <a href="https://boast.ai/blog/rd/the-complete-guide-to-irs-form-6765-changes-what-every-rd-tax-credit-claimant-must-know-in-2025/">The Complete Guide to IRS Form 6765 Changes: What Every R&D Tax Credit Claimant Must Know in 2025</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<p><div class="fusion-fullwidth fullwidth-box fusion-builder-row-26 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-50 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-41"><p><b><i><span data-contrast="auto">TL;DR:</span></i></b><i><span data-contrast="auto"> The IRS has rolled out the most significant </span></i><a href="https://www.irs.gov/forms-pubs/about-form-6765"><i><span data-contrast="none">Form 6765 overhaul in over a decade</span></i></a><i><span data-contrast="auto">, introducing three new sections that require project-level detail, business component breakdowns, and compliance-ready documentation. </span></i><b><i><span data-contrast="auto">While Section G is optional for 2024, it becomes mandatory for the 2025 tax year for certain businesses. </span></i></b><i><span data-contrast="auto">As a result, </span></i><i><span data-contrast="auto">the compliance burden is about to get very real.</span></i><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><span data-contrast="auto">After months of anticipation and multiple draft revisions, the IRS recently finalized the most comprehensive update to </span><span data-contrast="none"></span><a href="https://www.irs.gov/pub/irs-pdf/f6765.pdf"><span data-contrast="none">Form 6765 (</span><i><span data-contrast="none">Credit for Increasing Research Activities</span></i><span data-contrast="none">)</span></a><span data-contrast="none"></span><span data-contrast="auto"> since 2009. If your company claims federal R&D tax credits, these changes will fundamentally alter how you document, substantiate, and report your innovation activities.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">The bottom line?</span></b><span data-contrast="auto"> The days of high-level, aggregated R&D credit claims are over. The IRS wants project-level detail, business component breakdowns, and contemporaneous documentation that can withstand compliance scrutiny. For innovative companies, this isn’t just a compliance challenge, </span><i><span data-contrast="auto">but an opportunity</span></i><span data-contrast="auto"> to build stronger R&D operations that serve multiple strategic purposes.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Whats_Actually_Changing_The_New_Form_6765_Breakdown" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">What’s Actually Changing: The New Form 6765 Breakdown</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">The updated Form 6765 introduces three new sections that transform how businesses report R&D tax credits:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Section E: Other Information (Required Starting 2024)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">This section captures high-level metrics about your R&D activities:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Line 37</span></b><span data-contrast="auto">: Total number of business components generating your QREs</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Line 38</span></b><span data-contrast="auto">: Amount of officers’ wages included in QREs</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Line 39</span></b><span data-contrast="auto">: Whether you acquired or disposed of any major trade or business</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Line 40</span></b><span data-contrast="auto">: Whether you included new categories of expenses in current year QREs</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Line 41</span></b><span data-contrast="auto">: Whether you used the ASC 730 Directive for financial statement R&D</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Section F: QRE Summary (Required Starting 2024)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">This replaces the expense breakdowns that previously appeared in Sections A and B:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Wage QREs </span></li>
<li><span data-contrast="auto">Supply expenses consumed in research</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Computer rental/lease costs for qualified research</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Contract research expenses </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Section G: Business Component Reporting (Optional 2024, Mandatory 2025*)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">This is the big one</span></b><span data-contrast="auto">. For each business component representing the top 80% of your QREs (up to 50 components), you must provide:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Qualitative details</span></b><span data-contrast="auto">: Component name, type (product/process/software), EIN of conducting entity</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Software classification, if applicable</span></b><span data-contrast="auto">: Internal use, dual function, commercial, etc.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Wage QRE breakdown</span></b><span data-contrast="auto">: Direct research vs. supervision vs. support activities</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Non-wage QREs</span></b><span data-contrast="auto">: Supplies, computer costs, contract research by component</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Information sought</span></b><span data-contrast="auto">: Description of research objectives (amended returns only)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Who’s exempt from Section G in 2025?</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Qualified Small Businesses claiming the payroll tax credit</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Companies with ?$1.5M total QREs AND ?$50M gross receipts (controlled group level)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h2 aria-level="2" id="toc_Why_This_Matters_The_Strategic_Implications" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Why This Matters: The Strategic Implications</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<ol>
<li aria-level="3">
<h3 data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none"> Audit Protection Through Proactive Documentation</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">The IRS isn’t being subtle about their intent. These changes directly mirror the requirements from </span><a href="https://www.irs.gov/newsroom/irs-sets-forth-required-information-for-a-valid-research-credit-claim-for-refund"><span data-contrast="none">Chief Counsel Memorandum 20214101F</span></a><span data-contrast="auto">, which established enhanced documentation standards for R&D credit refund claims in 2021.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">What this means:</span></b><span data-contrast="auto"> The IRS is essentially requiring audit-level substantiation upfront. Companies that build robust compliance ready systems now will be audit-ready by default.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ol start="2">
<li aria-level="3">
<h3 data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none"> Business Component Becomes the New Unit of Analysis</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">Previously, many companies aggregated R&D expenses across broad categories. The new form requires thinking in terms of qualified “business components” including specific products, processes, or software applications that constitute separate research efforts.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Strategic opportunity:</span></b><span data-contrast="auto"> This granular view often reveals additional qualifying activities that companies overlooked in aggregate reporting. Proper business component analysis frequently increases total credit value by 15-25%.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ol start="3">
<li aria-level="3">
<h3 data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none"> Real-Time Substantiation Requirements</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">The form’s emphasis on contemporaneous documentation means you can’t reconstruct project details after the fact. Companies need systems that capture R&D activities as they happen.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Compliance imperative:</span></b><span data-contrast="auto"> Start building these systems now. Retroactive documentation for 2025+ tax years will be significantly more difficult and less defensible.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_IndustrySpecific_Impact_Who_Needs_to_Prepare" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Industry-Specific Impact: Who Needs to Prepare</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Software and Technology Companies</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">High impact areas:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Developer time allocation between direct research, supervision, and support</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Cloud computing expense categorization</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Integration with existing project management tools (Jira, GitHub, etc.)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Action items:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Map existing agile sprints and features to business components</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Implement time tracking that distinguishes research vs. routine development</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Document technical uncertainty and experimentation for each feature</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Manufacturing and Hardware Companies</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">High impact areas:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Prototype development and testing activities</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Process improvement initiatives</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Supply expense tracking for R&D vs. production</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Action items:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Establish clear boundaries between R&D and routine manufacturing processes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Implement R&D categorization of supplies</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Document technical challenges and iteration cycles</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Life Sciences and Biotechnology</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">High impact areas:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Clinical trial coordination and data analysis</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Drug discovery and development processes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Regulatory compliance testing and documentation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">University and federal laboratory collaborations</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Action items:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Align research phases with business component definitions</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Track qualified vs. non-qualified clinical activities</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Document contract research arrangements and applicable rates</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Professional Services and Consulting</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">High impact areas:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><span data-contrast="auto">Custom software development for clients</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Process innovation and methodology development</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Technology platform creation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Client-specific solution development</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Action items:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li>Accurately track client engagement fee terms and rights language </li>
<li><span data-contrast="auto">Document technical uncertainty in client engagements</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li>Establish clear boundaries between R&D efforts and routine client service delivery </li>
</ul>
<h2 aria-level="2" id="toc_The_Compliance_Burden_What_to_Expect" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Compliance Burden: What to Expect</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Documentation Requirements Have Multiplied</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">Before:</span></b><span data-contrast="auto"> Aggregate qualified expense categories</span><span data-contrast="auto" style="background-color: rgba(0, 0, 0, 0);"> </span><b style="background-color: rgba(0, 0, 0, 0);"><span data-contrast="auto">After:</span></b><span data-contrast="auto" style="background-color: rgba(0, 0, 0, 0);"> Project-level detail including:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}" style="background-color: rgba(0, 0, 0, 0);"> </span></p>
<ul>
<li><span data-contrast="auto">Technical objectives and uncertainties</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Methodologies and experimentation processes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Personnel allocation by activity type</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Expense tracking by business component</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Contemporaneous documentation of research efforts and iterations</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Administrative Complexity Is Significant</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">Based on our analysis of the new requirements, companies should expect:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">25-40% increase</span></b><span data-contrast="auto"> in Form 6765 preparation time</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Substantially higher</span></b><span data-contrast="auto"> documentation and record-keeping burden</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Cross-departmental coordination</span></b><span data-contrast="auto"> involving tax, finance, legal, and technical teams</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Compliance Risk Has Shifted</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><span data-contrast="auto">The IRS has essentially moved compliance-level scrutiny to the filing stage. Companies with inadequate substantiation will face:</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Delayed processing</span></b><span data-contrast="auto"> of refund claims</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Enhanced audit probability</span></b><span data-contrast="auto"> for incomplete submissions</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Potential credit disallowance</span></b><span data-contrast="auto"> for unsupported business components</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Penalties and interest</span></b><span data-contrast="auto"> for inaccurate or inflated claims</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h2 aria-level="2" id="toc_Strategic_Action_Plan_How_to_Prepare" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Strategic Action Plan: How to Prepare</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Phase 1: Assessment and Planning (Next 60 Days)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto"> Inventory Current R&D Activities</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Map existing projects to potential business components</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Identify technical uncertainties and experimentation processes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Assess current documentation quality and completeness</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Determine Section G exemption eligibility</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="2">
<li><b><span data-contrast="auto"> Evaluate Documentation Systems</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Review current project tracking and time allocation methods</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Assess integration capabilities with accounting and payroll systems</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Identify gaps in real-time R&D activity capture</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Plan for cross-departmental data collection workflows</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="3">
<li><b><span data-contrast="auto"> Analyze Resource Requirements</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Estimate additional compliance costs and time investment</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Determine internal vs. external resource allocation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Budget for technology system upgrades or implementations</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Phase 2: System Implementation (Next 90 Days)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto"> Establish Business Component Framework</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Define criteria for business component identification</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Create standardized naming and classification systems</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Develop tracking of technical uncertainty documentation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Implement project-level cost allocation procedures</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="2">
<li><b><span data-contrast="auto"> Upgrade Documentation Processes</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Implement real-time activity tracking systems</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Create standardized formats for research objective documentation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Establish workflows for contemporaneous decision logging</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Train technical staff on documentation requirements</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="3">
<li><b><span data-contrast="auto"> Integrate Cross-Departmental Workflows</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Establish regular data collection cycles</span></li>
<li><span data-contrast="auto">Create processes for business component classification</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Develop quality control checkpoints for documentation completeness</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Phase 3: Ongoing Optimization (Continuous)</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto"> Monitor and Adjust</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Track documentation quality and completeness metrics</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Regularly review business component definitions and boundaries</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Assess system performance and user adoption</span></li>
</ul>
<ol start="2">
<li><b><span data-contrast="auto"> Leverage Documentation for Strategic Purposes</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Use project-level data for R&D portfolio management</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Apply technical uncertainty analysis to innovation strategy</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Utilize detailed cost allocation for project profitability analysis</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Leverage documentation for IP strategy and patent applications</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h2 aria-level="2" id="toc_Common_Pitfalls_to_Avoid" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Common Pitfalls to Avoid</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Treating This as a Tax-Only Issue</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">The mistake:</span></b><span data-contrast="auto"> Relegating Form 6765 compliance to the finance department without involving technical and project management teams.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Why it matters:</span></b><span data-contrast="auto"> The new form requires technical detail that only project teams can provide. Finance departments alone cannot generate the required documentation.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Better approach:</span></b><span data-contrast="auto"> Establish cross-functional teams that include technical leads, project managers, and finance personnel.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Retroactive Documentation</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">The mistake:</span></b><span data-contrast="auto"> Attempting to reconstruct project details and technical decisions after the fact.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Why it matters:</span></b><span data-contrast="auto"> The IRS specifically emphasizes contemporaneous documentation. Retroactive reconstruction is less defensible and more audit-vulnerable.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Better approach:</span></b><span data-contrast="auto"> Implement real-time documentation systems that capture decisions and technical challenges as they occur.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Over-Aggregating Business Components</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">The mistake:</span></b><span data-contrast="auto"> Defining business components too broadly to minimize reporting burden.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Why it matters:</span></b><span data-contrast="auto"> Overly broad components often fail the business component test and may not capture the granular technical uncertainty required. <i>Essentially, if an overly broad business component gets disqualified, the entire claim is denied, whereas establishing more detailed, standalone business components reduces this risk</i></span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"></span></p>
<p><b><span data-contrast="auto">Better approach:</span></b><span data-contrast="auto"> Define business components at the appropriate level of technical specificity, typically aligned with distinct research objectives.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Inadequate Personnel Time Allocation</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">The mistake:</span></b><span data-contrast="auto"> Using uniform allocation percentages for employee time across different activity types and roles.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Why it matters:</span></b><span data-contrast="auto"> The new form requires specific breakdowns of direct research vs. supervision vs. support activities, which have different compliance implications.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Better approach:</span></b><span data-contrast="auto"> Implement detailed documentation that distinguishes between qualified activity types at the individual employee level.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h2 aria-level="2" id="toc_Technology_and_System_Considerations" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Technology and System Considerations</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Integration Opportunities</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"></span></h3>
<p><b><span data-contrast="auto">Effective integrations for accurate compliance:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ol>
<li aria-setsize="-1" data-leveltext="%1." data-font="Aptos" data-listid="24" data-list-defn-props="{'335552541':0,'335559685':720,'335559991':360,'469769242':[65533,0],'469777803':'left','469777804':'%1.','469777815':'hybridMultilevel'}" data-aria-posinset="1" data-aria-level="1"><b><span data-contrast="auto">Project Management Systems</span></b><span data-contrast="auto"> (Jira, Asana, Monday.com)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span>
<ol>
<li><span data-contrast="auto">Automatic business component identification</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Technical uncertainty documentation workflows</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Resource allocation tracking</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ol>
</li>
<li aria-setsize="-1" data-leveltext="%1." data-font="Aptos" data-listid="24" data-list-defn-props="{'335552541':0,'335559685':720,'335559991':360,'469769242':[65533,0],'469777803':'left','469777804':'%1.','469777815':'hybridMultilevel'}" data-aria-posinset="2" data-aria-level="1"><b><span data-contrast="auto">Payroll Systems</span></b><span data-contrast="auto"> (Harvest, Toggl, BambooHR)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span>
<ol>
<li><span data-contrast="auto">Activity-level time categorization</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Direct research vs. supervision vs. support classification</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Real-time data capture and validation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ol>
</li>
<li aria-setsize="-1" data-leveltext="%1." data-font="Aptos" data-listid="24" data-list-defn-props="{'335552541':0,'335559685':720,'335559991':360,'469769242':[65533,0],'469777803':'left','469777804':'%1.','469777815':'hybridMultilevel'}" data-aria-posinset="3" data-aria-level="1"><b><span data-contrast="auto">Accounting Systems</span></b><span data-contrast="auto"> (QuickBooks, NetSuite, SAP)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span>
<ol>
<li><span data-contrast="auto">Project-level expense allocation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">QRE categorization and tracking</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Integration with payroll for wage QRE calculation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ol>
</li>
<li aria-setsize="-1" data-leveltext="%1." data-font="Aptos" data-listid="24" data-list-defn-props="{'335552541':0,'335559685':720,'335559991':360,'469769242':[65533,0],'469777803':'left','469777804':'%1.','469777815':'hybridMultilevel'}" data-aria-posinset="4" data-aria-level="1"><b><span data-contrast="auto">Version Control Systems</span></b><span data-contrast="auto"> (GitHub, GitLab, Bitbucket)</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span>
<ol>
<li><span data-contrast="auto">Development activity documentation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Feature-level technical challenge tracking</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Experimental branch and iteration analysis</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ol>
</li>
</ol>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">Automation Opportunities</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<p><b><span data-contrast="auto">High-value automation targets:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Business component classification</span></b><span data-contrast="auto"> based on project management data</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Time allocation surveys</span></b><span data-contrast="auto"> with smart defaults and validation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Expense categorization</span></b><span data-contrast="auto"> using chart of accounts mapping</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Documentation compilation</span></b><span data-contrast="auto"> for audit readiness</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">QRE calculation</span></b><span data-contrast="auto"> with real-time updates and validation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<h2 aria-level="2" id="toc_The_Boast_Advantage_Turning_Compliance_Into_Strategic_Value" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Boast Advantage: Turning Compliance Into Strategic Value</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':299,'335559739':299}"> </span></h2>
<p><span data-contrast="auto">At Boast, we’ve been preparing for these Form 6765 changes since the first draft was released. Our platform and expert team help companies not just comply with the new requirements but leverage the enhanced documentation to build stronger R&D operations.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<h3 aria-level="3" data-fontsize="24" style="--fontSize: 24; line-height: 1.3;" data-lineheight="31.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">How We Help Companies Succeed</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto"> Automated Business Component Identification</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">AI-powered analysis of project management and development data</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Intelligent mapping of activities to business components</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Automated technical uncertainty detection and documentation</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="2">
<li><b><span data-contrast="auto"> Real-Time Documentation Systems</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Seamless integration with existing project management tools</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Contemporaneous capture of research decisions and technical challenges</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Automated workflow for cross-departmental data collection</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="3">
<li><b><span data-contrast="auto"> Audit-Ready Substantiation</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Documentation that exceeds IRS requirements by design</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Continuous validation of business component qualification</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Expert review and quality assurance for all claims</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<ol start="4">
<li><b><span data-contrast="auto"> Strategic R&D Intelligence</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Project-level profitability and ROI analysis</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Innovation portfolio optimization insights</span></li>
</ul>
<ol start="5">
<li><b><span data-contrast="auto"> Ongoing Compliance Management</span></b></li>
</ol>
<ul>
<li><span data-contrast="auto">Data validation and review</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Continuous system optimization and improvement</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><span data-contrast="auto">Expert guidance on evolving IRS requirements and interpretations</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ul>
<p>If customers don’t currently have these systems in place, our experts can offer guidance and evaluate the best strategy to ensure compliance.</p>
<h2 aria-level="3" id="toc_The_Bottom_Line_Preparation_Is_Everything" data-fontsize="36" style="--fontSize: 36; line-height: 1.2;" data-lineheight="43.2px" class="fusion-responsive-typography-calculated"><b><span data-contrast="none">The Bottom Line: Preparation Is Everything</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'134245418':true,'134245529':true,'335559738':281,'335559739':281}"> </span></h2>
<p><span data-contrast="auto">The new Form 6765 requirements represent a fundamental shift in how the IRS approaches R&D tax credit compliance. Companies that treat this as a strategic opportunity to build better R&D operations will thrive. Those that view it as a compliance burden will struggle.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Key success factors:</span></b><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Start early</span></b><span data-contrast="auto">: Implement systems before 2025 when Section G becomes mandatory</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Think strategically</span></b><span data-contrast="auto">: Use enhanced documentation for multiple business purposes</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Invest in automation</span></b><span data-contrast="auto">: Leverage technology to reduce manual compliance burden</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
<li><b><span data-contrast="auto">Get expert help</span></b><span data-contrast="auto">: Work with specialists who understand both the technical requirements and strategic opportunities</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':0,'335559739':0}"> </span></li>
</ol>
<p><span data-contrast="auto">The companies that master these new requirements won’t just maintain their R&D tax credits: They’ll build competitive advantages through better innovation management, stronger documentation, and more strategic R&D investment decisions.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
<p><b><span data-contrast="auto">Ready to turn Form 6765 compliance into a strategic advantage?</span></b><span data-contrast="auto"> Talk to an expert today and discover how Boast can help you navigate the new requirements while building stronger R&D operations.</span><span data-ccp-props="{'134233117':false,'134233118':false,'335559738':240,'335559739':240}"> </span></p>
</div></div></div></div></div><div class="fusion-fullwidth fullwidth-box fusion-builder-row-27 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-51 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-1"><div class="fusion-panel panel-default panel-7d60bc5f17e00af21 fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_7d60bc5f17e00af21"><a aria-expanded="false" aria-controls="7d60bc5f17e00af21" role="button" data-toggle="collapse" data-parent="#accordion-340158-1" data-target="#7d60bc5f17e00af21" href="#7d60bc5f17e00af21"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading">Is Section G really mandatory starting in 2025?</span></a></h4></div><div id="7d60bc5f17e00af21" class="panel-collapse collapse " aria-labelledby="toggle_7d60bc5f17e00af21"><div class="panel-body toggle-content fusion-clearfix">
<p>
Yes, for most taxpayers. Section G is optional for 2024 tax years but mandatory starting in 2025, except for Qualified Small Businesses claiming payroll tax credits and companies with ?$1.5M QREs and ?$50M gross receipts (at controlled group level).
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-2"><div class="fusion-panel panel-default panel-590a4997c6fd195d1 fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_590a4997c6fd195d1"><a aria-expanded="false" aria-controls="590a4997c6fd195d1" role="button" data-toggle="collapse" data-parent="#accordion-340158-2" data-target="#590a4997c6fd195d1" href="#590a4997c6fd195d1"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading"></span></a></h4></div><div id="590a4997c6fd195d1" class="panel-collapse collapse " aria-labelledby="toggle_590a4997c6fd195d1"><div class="panel-body toggle-content fusion-clearfix">
<p>
A business component is any product, process, computer software, technique, formula, or invention that is intended to be sold, leased, licensed, or used by the taxpayer in its trade or business. Each component should represent a discrete research effort with distinct technical objectives.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-3"><div class="fusion-panel panel-default panel-d4b7b747170c61dbf fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_d4b7b747170c61dbf"><a aria-expanded="false" aria-controls="d4b7b747170c61dbf" role="button" data-toggle="collapse" data-parent="#accordion-340158-3" data-target="#d4b7b747170c61dbf" href="#d4b7b747170c61dbf"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading"></span></a></h4></div><div id="d4b7b747170c61dbf" class="panel-collapse collapse " aria-labelledby="toggle_d4b7b747170c61dbf"><div class="panel-body toggle-content fusion-clearfix">
<p>
For 2024-2025, this is only required for amended returns claiming increased credits. The IRS has indicated that taxpayers should “use the space provided” on the form, suggesting concise but specific descriptions of research objectives and technical uncertainties.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-4"><div class="fusion-panel panel-default panel-b4f8d9188e385cc1b fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_b4f8d9188e385cc1b"><a aria-expanded="false" aria-controls="b4f8d9188e385cc1b" role="button" data-toggle="collapse" data-parent="#accordion-340158-4" data-target="#b4f8d9188e385cc1b" href="#b4f8d9188e385cc1b"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading">Can I use statistical sampling for the new business component reporting?</span></a></h4></div><div id="b4f8d9188e385cc1b" class="panel-collapse collapse " aria-labelledby="toggle_b4f8d9188e385cc1b"><div class="panel-body toggle-content fusion-clearfix">
<p>
Yes, but with limitations. Companies using Rev. Proc. 2011-42 statistical sampling must report the top 80% of total QREs (up to 50 business components), regardless of whether those components were included in the original sample. This can create significant additional documentation burden.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-5"><div class="fusion-panel panel-default panel-c07fe5dd9a85bd789 fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_c07fe5dd9a85bd789"><a aria-expanded="false" aria-controls="c07fe5dd9a85bd789" role="button" data-toggle="collapse" data-parent="#accordion-340158-5" data-target="#c07fe5dd9a85bd789" href="#c07fe5dd9a85bd789"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading"></span></a></h4></div><div id="c07fe5dd9a85bd789" class="panel-collapse collapse " aria-labelledby="toggle_c07fe5dd9a85bd789"><div class="panel-body toggle-content fusion-clearfix">
<p>
The form requires specific breakdowns based on actual employee activities. Direct research involves hands-on experimentation and development. Supervision includes direct oversight of qualified research activities. Support includes activities that directly facilitate research but aren’t hands-on experimentation. Time tracking systems should capture these distinctions contemporaneously.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-6"><div class="fusion-panel panel-default panel-ccdcf74cbf85081ba fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_ccdcf74cbf85081ba"><a aria-expanded="false" aria-controls="ccdcf74cbf85081ba" role="button" data-toggle="collapse" data-parent="#accordion-340158-6" data-target="#ccdcf74cbf85081ba" href="#ccdcf74cbf85081ba"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading">What happens if I can't provide the required business component detail?</span></a></h4></div><div id="ccdcf74cbf85081ba" class="panel-collapse collapse " aria-labelledby="toggle_ccdcf74cbf85081ba"><div class="panel-body toggle-content fusion-clearfix">
<p>
Inadequate documentation could result in delayed processing, enhanced audit scrutiny, or potential credit disallowance. The IRS has indicated these requirements are designed to improve claim quality and reduce fraudulent submissions.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-7"><div class="fusion-panel panel-default panel-171098417f8427c20 fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_171098417f8427c20"><a aria-expanded="false" aria-controls="171098417f8427c20" role="button" data-toggle="collapse" data-parent="#accordion-340158-7" data-target="#171098417f8427c20" href="#171098417f8427c20"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading">Are there any penalties for incorrect Form 6765 reporting?</span></a></h4></div><div id="171098417f8427c20" class="panel-collapse collapse " aria-labelledby="toggle_171098417f8427c20"><div class="panel-body toggle-content fusion-clearfix">
<p>
Yes. Inaccurate or inflated claims can result in penalties, interest, and potential fraud allegations. Given the increased scrutiny, documentation quality and accuracy are more critical than ever.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-8"><div class="fusion-panel panel-default panel-a834938c002d33ef5 fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_a834938c002d33ef5"><a aria-expanded="false" aria-controls="a834938c002d33ef5" role="button" data-toggle="collapse" data-parent="#accordion-340158-8" data-target="#a834938c002d33ef5" href="#a834938c002d33ef5"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading">How does this interact with state R&D credit requirements?</span></a></h4></div><div id="a834938c002d33ef5" class="panel-collapse collapse " aria-labelledby="toggle_a834938c002d33ef5"><div class="panel-body toggle-content fusion-clearfix">
<p>
Many states have their own R&D credit programs with different documentation requirements. The enhanced federal documentation may actually help with state compliance, but companies should review each state’s specific requirements.
</p>
</div></div></div></div></div><div class="accordian fusion-accordian" style="--awb-border-size:1px;--awb-icon-size:16px;--awb-content-font-size:var(--awb-typography4-font-size);--awb-icon-alignment:left;--awb-hover-color:var(--awb-color2);--awb-border-color:var(--awb-color3);--awb-background-color:var(--awb-color1);--awb-divider-color:var(--awb-color3);--awb-divider-hover-color:var(--awb-color3);--awb-icon-color:var(--awb-color1);--awb-title-color:var(--awb-color8);--awb-content-color:var(--awb-color8);--awb-icon-box-color:var(--awb-color8);--awb-toggle-hover-accent-color:var(--awb-color5);--awb-title-font-family:var(--awb-typography1-font-family);--awb-title-font-weight:var(--awb-typography1-font-weight);--awb-title-font-style:var(--awb-typography1-font-style);--awb-title-font-size:16px;--awb-title-letter-spacing:var(--awb-typography1-letter-spacing);--awb-title-line-height:var(--awb-typography1-line-height);--awb-content-font-family:var(--awb-typography4-font-family);--awb-content-font-weight:var(--awb-typography4-font-weight);--awb-content-font-style:var(--awb-typography4-font-style);"><div class="panel-group fusion-toggle-icon-boxed" id="accordion-340158-9"><div class="fusion-panel panel-default panel-d2222c94365f3df34 fusion-toggle-has-divider"><div class="panel-heading"><h4 class="panel-title toggle" id="toggle_d2222c94365f3df34"><a aria-expanded="false" aria-controls="d2222c94365f3df34" role="button" data-toggle="collapse" data-parent="#accordion-340158-9" data-target="#d2222c94365f3df34" href="#d2222c94365f3df34"><span class="fusion-toggle-icon-wrapper" aria-hidden="true"><i class="fa-fusion-box active-icon awb-icon-minus" aria-hidden="true"></i><i class="fa-fusion-box inactive-icon awb-icon-plus" aria-hidden="true"></i></span><span class="fusion-toggle-heading">Should I complete Section G for 2024 even though it's optional?</span></a></h4></div><div id="d2222c94365f3df34" class="panel-collapse collapse " aria-labelledby="toggle_d2222c94365f3df34"><div class="panel-body toggle-content fusion-clearfix">
<p>
Consider completing Section G for 2024 if you have the documentation available, as it demonstrates proactive compliance and can help identify process improvements before the 2025 mandatory deadline. However, ensure accuracy rather than rushing incomplete information.
</p>
</div></div></div></div></div></div></div></div></div></p>
<p>The post <a href="https://boast.ai/blog/rd/the-complete-guide-to-irs-form-6765-changes-what-every-rd-tax-credit-claimant-must-know-in-2025/">The Complete Guide to IRS Form 6765 Changes: What Every R&D Tax Credit Claimant Must Know in 2025</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></content:encoded>
</item>
<item>
<title>Quebec’s CRIC Revolution: How the Province Just Transformed R&D Funding for 2025 and Beyond</title>
<link>https://boast.ai/blog/sr-ed/quebecs-cric-revolution-how-the-province-just-transformed-rd-funding-for-2025-and-beyond/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Mon, 25 Aug 2025 19:27:39 +0000</pubDate>
<category><![CDATA[Innovation Insights]]></category>
<category><![CDATA[SR&ED]]></category>
<category><![CDATA[CRIC]]></category>
<category><![CDATA[development]]></category>
<category><![CDATA[e-business]]></category>
<category><![CDATA[engineering]]></category>
<category><![CDATA[montreal]]></category>
<category><![CDATA[Quebec]]></category>
<category><![CDATA[R&D]]></category>
<category><![CDATA[research]]></category>
<category><![CDATA[sr&ed]]></category>
<category><![CDATA[SRED]]></category>
<category><![CDATA[tax credits]]></category>
<category><![CDATA[tech]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340154</guid>
<description><![CDATA[<p>Breaking: Quebec has fundamentally reimagined how it supports innovation. Starting March 25, 2025, the province's complex web of eight separate R&D tax credits has been swept away and replaced with a single, supercharged program that rivals (and in many ways surpasses) the federal SR&ED program. For innovative businesses based in Quebec, this isn't just another policy [...]</p>
<p>The post <a href="https://boast.ai/blog/sr-ed/quebecs-cric-revolution-how-the-province-just-transformed-rd-funding-for-2025-and-beyond/">Quebec’s CRIC Revolution: How the Province Just Transformed R&D Funding for 2025 and Beyond</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-28 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-52 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-42"><p><b><span data-contrast="auto">Breaking:</span></b><span data-contrast="auto"> Quebec has fundamentally reimagined how it supports innovation. Starting March 25, 2025, the province’s complex web of eight separate R&D tax credits has been swept away and replaced with a single, supercharged program that rivals (and in many ways surpasses) the federal SR&ED program.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">For innovative businesses based in Quebec, this isn’t just another policy update: It’s a game-changing opportunity to dramatically increase non-dilutive capital access while streamlining the entire funding process. The new Tax Credit for Research, Innovation and Commercialization (CRIC) effectively creates Quebec’s own version of SR&ED that’s more generous, more accessible, and specifically designed for the modern innovation economy.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">If you’re looking to stretch your R&D funding further in 2025, Quebec just became the most attractive jurisdiction in North America for innovation funding.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Great Quebec R&D Transformation: From Fragmentation to Power</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">The Old Reality: A Bureaucratic Maze</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">For years, Quebec businesses navigated a confusing landscape of separate provincial R&D programs. The province’s SR&ED program was of a patchwork of credits that were effective but clunky, with different rates, different eligibility criteria, and different application processes. Companies often left money on the table simply because they couldn’t navigate the complexity.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">The New Reality: Quebec’s Provincial SR&ED on Steroids</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">CRIC changes everything. Quebec will consolidate various previously existing R&D tax credits and eliminate those deemed less productive and administratively burdensome, creating a new Research, Innovation and Commercialization Tax Credit (CRIC) that effectively serves as the province’s answer to the federal SR&ED program, but with significant improvements.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Think of it this way: </span><i><span data-contrast="auto">If federal SR&ED is the foundation of Canada’s innovation funding, CRIC is now Quebec’s provincial powerhouse that companies can stack on top for unprecedented support levels.</span></i><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Eight Programs Become One Juggernaut</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">CRIC consolidates and replaces these former Quebec programs:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Tax credit for salaries and wages (R&D)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax credit for university research or research carried out by public research centres</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax credit for private partnership pre-competitive research</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax credit for fees and dues paid to research consortiums</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax credit for technological adaptation services</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax credit for industrial design</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax holiday for foreign researchers</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Tax holiday for foreign experts</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><span data-contrast="auto">The result? A single program that’s easier to access and significantly more generous than the sum of its parts.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">CRIC vs. Federal SR&ED: Quebec’s Provincial Program Pulls Ahead</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Understanding how CRIC compares to federal SR&ED reveals why Quebec businesses now have a significant advantage:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">Federal SR&ED: The National Baseline</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<ul>
<li><b><span data-contrast="auto">Rates:</span></b><span data-contrast="auto"> 35% (CCPCs, first $4.5M), 15% (others)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Focus:</span></b><span data-contrast="auto"> Experimental development and technological uncertainty resolution</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Coverage:</span></b><span data-contrast="auto"> Traditional R&D activities, recently restored capital expenditures</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Administration:</span></b><span data-contrast="auto"> Canada Revenue Agency (CRA)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h3 aria-level="3"><b><span data-contrast="none">CRIC: Quebec’s Enhanced Provincial Response</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<ul>
<li><b><span data-contrast="auto">Rates:</span></b><span data-contrast="auto"> 30% refundable tax credit on the first $1 million of eligible expenses exceeding the exclusion threshold and then a 20% refundable tax credit on eligible expenses over $1 million</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Focus:</span></b><span data-contrast="auto"> R&D plus pre-commercialization activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Coverage:</span></b><span data-contrast="auto"> Expenditures related to various pre-commercialization activities, such as testing, technological validation, and studies conducted to meet regulatory or certification requirements</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Administration:</span></b><span data-contrast="auto"> Revenu Québec</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">The Stacking Advantage:</span></b><span data-contrast="auto"> Quebec companies can now claim both federal SR&ED and provincial CRIC for the same eligible activities, creating combined effective rates that can exceed 50% for qualifying expenditures.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Revolutionary Changes: What Makes CRIC Different</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<ol>
<li><b><span data-contrast="auto"> Universal Access Regardless of Company Size</span></b></li>
</ol>
<p><span data-contrast="auto">The new rates apply to all corporations, irrespective of their ownership or assets, making it easier for businesses to budget cashflows and access the tax credit. Unlike the previous Quebec system where rates varied from 14% to 30% based on company characteristics, CRIC offers the same enhanced rates to startups and multinational corporations alike.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol start="2">
<li><b><span data-contrast="auto"> Pre-Commercialization Coverage: Bridging the Valley of Death</span></b></li>
</ol>
<p><span data-contrast="auto">This is CRIC’s most significant innovation. Traditionally, SR&ED tax credits in Quebec only applied up to the resolution of a technological uncertainty, which is often the end of a project’s core R&D phase. However, businesses will now be able to claim expenditures related to various pre-commercialization activities, including:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Regulatory testing and certification processes</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Product design and industrial design activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Technological validation and pilot production</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Market studies required for commercialization</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Prototype refinement and testing</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><span data-contrast="auto">This addresses the critical funding gap that exists between R&D completion and market entry (the notorious “valley of death” that kills many promising innovations).</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol start="3">
<li><b><span data-contrast="auto"> Capital Expenditure Revolution</span></b></li>
</ol>
<p><span data-contrast="auto">For the first time in many years, capital expenditures used in R&D, such as depreciable equipment used in labs and software development, are now eligible for tax credits. This represents a massive advantage over federal SR&ED, which has historically excluded most capital expenditures.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Quebec companies can now claim CRIC credits on:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">R&D laboratory equipment</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Software development infrastructure</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Specialized manufacturing equipment for prototyping</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Testing and validation equipment</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<ol start="4">
<li><b><span data-contrast="auto"> Simplified Rate Structure with Powerful Incentives</span></b></li>
</ol>
<p><span data-contrast="auto">The new two-tier system eliminates confusion while maximizing benefits:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Tier 1:</span></b><span data-contrast="auto"> 30% on first $1M (enhanced rate for substantial initial investment)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Tier 2:</span></b><span data-contrast="auto"> 20% on excess (still higher than most previous Quebec rates)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<ol start="5">
<li><b><span data-contrast="auto"> Fully Refundable: Cash Flow Revolution for Startups</span></b></li>
</ol>
<p><span data-contrast="auto">Unlike many tax credits that require companies to have tax liability, CRIC is fully refundable. This means even pre-revenue startups receive cash refunds, transforming how early-stage companies access non-dilutive capital.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Strategic Program Integration: Maximizing Your Non-Dilutive Capital Stack</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">The Triple Threat: CRIC + SR&ED + CDAEIA</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">For Quebec-based innovative companies, 2025 creates an unprecedented opportunity to stack funding programs:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="3"><b><span data-contrast="none">Optimal Program Combination Strategy:</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h2>
<p><b><span data-contrast="auto">Federal SR&ED (35% CCPCs/15% others)</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Claim experimental development and technological uncertainty resolution</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Focus on breakthrough research and systematic investigation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Leverage enhanced $4.5M expenditure limit and restored capital expenditures</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Provincial CRIC (30%/20%)</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Claim same R&D activities under Quebec’s harmonized definition</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Add pre-commercialization activities not covered by SR&ED</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Include capital expenditures for Quebec R&D equipment</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">CDAEIA for AI Companies (30% total)</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">AI integration and implementation activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Ongoing AI development and enhancement</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Quebec-specific AI business solutions</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Real-World Impact Example:</span></b><span data-contrast="auto"> A Quebec AI company with $2M in eligible R&D expenditures could potentially access:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Federal SR&ED: $700,000 (35% × $2M)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Provincial CRIC: $500,000 (30% × $1M + 20% × $1M)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">CDAEIA: Additional credits for AI-specific activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Total potential support:</span></b><span data-contrast="auto"> $1.2M+ on $2M investment</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Evolution Timeline: Quebec’s Strategic Innovation Vision</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">2008-2024: The Fragmented Era</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Multiple separate Quebec R&D programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Asset-based restrictions limiting access</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Administrative complexity deterring participation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Rates varying from 14-30% based on company characteristics</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">March 25, 2025: The CRIC Revolution</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">For taxation years beginning after March 25, 2025, Quebec will consolidate various previously existing R&D tax credits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Universal 30%/20% rate structure regardless of company size</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Pre-commercialization activities now eligible</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Capital expenditures included for first time in years</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">2026 and Beyond: The New Quebec Advantage</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Simplified single-program administration</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Enhanced collaboration with federal SR&ED</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Positioning Quebec as North America’s innovation funding leader</span></li>
</ul>
<h2><b><span data-contrast="none">Lifecycle Strategy: Maximizing CRIC Across Growth Stages</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">Pre-Revenue Startups: The Fully Refundable Advantage</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">CRIC’s fully refundable structure makes it particularly powerful for early-stage companies:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Cash flow boost:</span></b><span data-contrast="auto"> Receive refunds even with zero tax liability</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Pre-commercialization support:</span></b><span data-contrast="auto"> Fund product design, regulatory testing, and market validation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Equipment investments:</span></b><span data-contrast="auto"> Purchase R&D equipment with 30% cost recovery</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">University partnerships:</span></b><span data-contrast="auto"> Leverage 50% cost recovery on Quebec research collaborations</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Growth-Stage Companies ($1M-$10M): The Sweet Spot</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The $1M threshold at 30% creates powerful incentives for growing companies:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Strategic project clustering:</span></b><span data-contrast="auto"> Structure R&D activities to maximize 30% rate utilization</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Commercialization bridge:</span></b><span data-contrast="auto"> Use pre-commercialization coverage to bridge R&D to market</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Infrastructure investment:</span></b><span data-contrast="auto"> Build Quebec R&D capabilities with capital expenditure support</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Talent retention:</span></b><span data-contrast="auto"> Enhanced salary coverage makes Quebec R&D teams more cost-effective</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Mature Companies ($10M+): The Universal Access Advantage</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">Unlike previous Quebec programs, CRIC offers full benefits regardless of company size:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">No asset restrictions:</span></b><span data-contrast="auto"> Large companies access same rates as startups</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Dual program strategy:</span></b><span data-contrast="auto"> Coordinate CRIC with federal SR&ED for maximum benefit</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Collaborative research:</span></b><span data-contrast="auto"> Enhanced support for university and research center partnerships</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Global competitiveness:</span></b><span data-contrast="auto"> Quebec operations become more attractive for multinational R&D</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Implementation Roadmap: Capturing Maximum Value in 2025</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">Q1 2025: Preparation Phase</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Audit current R&D activities:</span></b><span data-contrast="auto"> Identify CRIC-eligible expenditures using new criteria</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Documentation systems:</span></b><span data-contrast="auto"> Prepare for new exclusion threshold calculations and pre-commercialization tracking</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Strategic planning:</span></b><span data-contrast="auto"> Structure 2025-2026 projects to optimize CRIC benefits</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Partnership development:</span></b><span data-contrast="auto"> Establish relationships with Quebec universities and research centers</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Q2-Q3 2025: Transition Execution</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Project restructuring:</span></b><span data-contrast="auto"> Align R&D activities with CRIC’s expanded eligibility criteria</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Equipment planning:</span></b><span data-contrast="auto"> Time capital expenditures for optimal CRIC utilization</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Staff allocation:</span></b><span data-contrast="auto"> Document employee time allocation for new threshold calculations</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Process integration:</span></b><span data-contrast="auto"> Coordinate CRIC with federal SR&ED and other programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Q4 2025 and Beyond: Optimization Phase</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">First CRIC claims:</span></b><span data-contrast="auto"> File initial claims for companies with March 2026+ fiscal year-ends</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Results analysis:</span></b><span data-contrast="auto"> Assess CRIC impact compared to previous Quebec programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Strategy refinement:</span></b><span data-contrast="auto"> Optimize future R&D planning based on CRIC experience</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Competitive advantage:</span></b><span data-contrast="auto"> Leverage Quebec’s enhanced funding environment for growth</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">The Exclusion Threshold Revolution: Understanding the New Calculation</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">CRIC introduces a sophisticated exclusion threshold that’s more generous than previous systems:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">New Calculation Method:</span></b><span data-contrast="auto"> The exclusion threshold is now the greater of $50,000 or the basic personal amount per employee, prorated based on an employee’s time spent on R&D activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Example Calculation (2025):</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">10 full-time R&D employees</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Basic personal amount: $18,751</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Exclusion threshold: $187,510 (10 × $18,751)</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Only expenditures above $187,510 qualify for credit</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Strategic Advantage:</span></b><span data-contrast="auto"> This employee-based system rewards companies with substantial R&D teams and ensures credits target genuine innovation investments rather than minimal activities.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Competitive Landscape: Quebec’s National Innovation Leadership</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">North American Context</span></b><span data-contrast="auto"> Quebec’s CRIC program now offers some of the most generous R&D incentives in North America:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Combined rates:</span></b><span data-contrast="auto"> 50%+ effective rates when stacked with federal programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Comprehensive coverage:</span></b><span data-contrast="auto"> R&D through commercialization in single program</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Universal access:</span></b><span data-contrast="auto"> No restrictions based on company size or ownership</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Immediate cash flow:</span></b><span data-contrast="auto"> Fully refundable structure supports all company stages</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">International Competitiveness</span></b><span data-contrast="auto"> CRIC positions Quebec to compete with global innovation hubs:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><b><span data-contrast="auto">Singapore-level incentives:</span></b><span data-contrast="auto"> Comparable effective rates to top international programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Broader coverage:</span></b><span data-contrast="auto"> Includes activities not covered by most international programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Simplified access:</span></b><span data-contrast="auto"> Single program vs. complex multi-program structures elsewhere</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Strategic focus:</span></b><span data-contrast="auto"> Aligned with Quebec’s AI and advanced technology strengths</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Looking Forward: Quebec’s Innovation Economy Vision</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">Government Investment Commitment</span></b><span data-contrast="auto"> Quebec’s $2.4 billion commitment to CRIC over five years signals long-term vision for innovation leadership. This represents a strategic bet on Quebec becoming North America’s premier innovation jurisdiction.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Economic Impact Projections</span></b><span data-contrast="auto"> Early projections suggest CRIC could:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Increase Quebec R&D investment by 15-20%</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Attract additional multinational R&D operations</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Support 10,000+ additional high-skilled innovation jobs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Generate significant IP commercialization through IDCI integration</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<p><b><span data-contrast="auto">Strategic Ecosystem Development</span></b><span data-contrast="auto"> CRIC’s enhanced support for university partnerships and collaborative research aims to build Quebec’s innovation ecosystem by:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ul>
<li><span data-contrast="auto">Strengthening industry-academia connections</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Encouraging technology transfer and commercialization</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Supporting development of innovation clusters</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><span data-contrast="auto">Attracting international research collaborations</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ul>
<h2 aria-level="2"><b><span data-contrast="none">Action Plan: Maximizing Your 2025 CRIC Strategy</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><b><span data-contrast="auto">Immediate Actions (Next 90 Days):</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Comprehensive R&D audit:</span></b><span data-contrast="auto"> Review all 2024-2025 activities for CRIC eligibility</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Documentation upgrade:</span></b><span data-contrast="auto"> Implement systems for tracking pre-commercialization activities and employee time allocation</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Partnership assessment:</span></b><span data-contrast="auto"> Evaluate potential collaborations with Quebec universities and research centers</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Integration planning:</span></b><span data-contrast="auto"> Coordinate CRIC strategy with federal SR&ED and other programs</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<p><b><span data-contrast="auto">Medium-term Strategy (6-12 Months):</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Project restructuring:</span></b><span data-contrast="auto"> Align R&D initiatives with CRIC’s expanded eligibility criteria</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Infrastructure investment:</span></b><span data-contrast="auto"> Plan equipment purchases to leverage capital expenditure eligibility</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Team optimization:</span></b><span data-contrast="auto"> Consider Quebec-based R&D team expansion given enhanced funding</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Commercialization pipeline:</span></b><span data-contrast="auto"> Develop systematic approach to pre-commercialization activities</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<p><b><span data-contrast="auto">Long-term Positioning (1-3 Years):</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol>
<li><b><span data-contrast="auto">Innovation hub development:</span></b><span data-contrast="auto"> Establish Quebec as primary R&D center for enhanced funding access</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">IP commercialization:</span></b><span data-contrast="auto"> Integrate CRIC with IDCI for end-to-end innovation-to-market strategy</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Competitive advantage:</span></b><span data-contrast="auto"> Leverage Quebec’s funding advantage for accelerated innovation cycles</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
<li><b><span data-contrast="auto">Ecosystem participation:</span></b><span data-contrast="auto"> Become active participant in Quebec’s enhanced innovation ecosystem</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":0,"335559739":0}"> </span></li>
</ol>
<h2 aria-level="2"><b><span data-contrast="none">The Bottom Line: Quebec’s Innovation Funding Revolution</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Quebec’s CRIC program represents the most significant evolution in Canadian provincial R&D funding in decades. By consolidating eight separate programs into a single, supercharged initiative, Quebec has created what’s effectively a provincial version of SR&ED that’s more generous, more accessible, and better aligned with modern innovation realities.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">For innovative businesses based in Quebec, CRIC isn’t just another tax credit: It’s a strategic advantage that can fundamentally change how you fund innovation. The combination of federal SR&ED and provincial CRIC creates funding opportunities that can support 50%+ of eligible R&D expenditures while extending coverage into pre-commercialization activities that other jurisdictions don’t support.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">The message is clear:</span></b> <i><span data-contrast="auto">Quebec is betting big on innovation</span></i><span data-contrast="auto">, and companies that understand and leverage CRIC will have a significant competitive advantage in the race to develop and commercialize next-generation technologies.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">The opportunity window is open now.</span></b><span data-contrast="auto"> With CRIC effective for taxation years beginning after March 25, 2025, innovative companies have a brief window to prepare their strategies and maximize their non-dilutive capital access. Those who act quickly and strategically will be best positioned to benefit from Quebec’s innovation funding revolution.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/sr-ed/quebecs-cric-revolution-how-the-province-just-transformed-rd-funding-for-2025-and-beyond/">Quebec’s CRIC Revolution: How the Province Just Transformed R&D Funding for 2025 and Beyond</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
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<item>
<title>Canada’s New Draft SR&ED Rules: Higher Credits, Public Company Eligibility, and Capital Expenditures Return</title>
<link>https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/</link>
<dc:creator><![CDATA[Paul Davenport]]></dc:creator>
<pubDate>Thu, 21 Aug 2025 13:48:33 +0000</pubDate>
<category><![CDATA[Business Growth]]></category>
<category><![CDATA[SR&ED]]></category>
<category><![CDATA[Canada]]></category>
<category><![CDATA[federal budget]]></category>
<category><![CDATA[funding]]></category>
<category><![CDATA[Government Funding]]></category>
<category><![CDATA[growth]]></category>
<category><![CDATA[SR&ED Resources]]></category>
<category><![CDATA[SRED]]></category>
<category><![CDATA[SRED Resources]]></category>
<category><![CDATA[tax credits]]></category>
<guid isPermaLink="false">https://boast.ai/?p=340149</guid>
<description><![CDATA[<p>Bottom line up front: Canada just announced the biggest enhancements to its SR&ED program in years, with higher credit limits, expanded eligibility, and the return of capital expenditure eligibility. Draft legislation was released on August 15, 2025, with these changes taking effect for tax years beginning after December 16, 2024. For manufacturers and scaling-tech [...]</p>
<p>The post <a href="https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/">Canada’s New Draft SR&ED Rules: Higher Credits, Public Company Eligibility, and Capital Expenditures Return</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
]]></description>
<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box fusion-builder-row-29 fusion-flex-container has-pattern-background has-mask-background nonhundred-percent-fullwidth non-hundred-percent-height-scrolling" style="--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;" ><div class="fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap" style="max-width:1435.2px;margin-left: calc(-4% / 2 );margin-right: calc(-4% / 2 );"><div class="fusion-layout-column fusion_builder_column fusion-builder-column-53 fusion_builder_column_1_1 1_1 fusion-flex-column" style="--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;"><div class="fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column"><div class="fusion-text fusion-text-43"><p><b><span data-contrast="auto">Bottom line up front:</span></b><span data-contrast="auto"> Canada just announced the biggest enhancements to its SR&ED program in years, with higher credit limits, expanded eligibility, and the return of capital expenditure eligibility. Draft legislation was </span><a href="https://budget.canada.ca/update-miseajour/2024/report-rapport/tm-mf-en.html#scientific-research-experimental-development"><span data-contrast="none">released on August 15, 2025</span></a><span data-contrast="auto">, with these changes taking effect for tax years beginning after December 16, 2024. </span><i><span data-contrast="auto">For manufacturers and scaling-tech companies in particular, this new is potentially game-changing..</span></i><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">If you’re running an innovative business in Canada, December 16th might just be your new favorite date. The federal government’s 2024 Fall Economic Statement delivered some serious upgrades to the Scientific Research and Experimental Development (SR&ED) program that could put significantly more cash back in your pocket.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Latest Update: Draft Legislation Now Available</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">On August 15, 2025, the Minister of Finance released draft legislative proposals for consultation that would implement these SR&ED enhancements along with other previously announced tax measures. The government is </span><a href="https://news.bloombergtax.com/daily-tax-report-international/canada-mof-seeks-comments-on-proposals-to-implement-various-tax-measures?utm_source=rss&utm_medium=DINW&utm_campaign=00000198-bf2e-df9a-afb8-bfff288f0001"><span data-contrast="none">seeking feedback from businesses and stakeholders through September 12, 2025</span></a><span data-contrast="auto">, before finalizing the legislation.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">This means the changes are moving from announcement to implementation, which is a clear signal that these enhancements are on track to become law.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Big Four Changes That Matter</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<ol>
<li aria-level="3">
<h3><b><span data-contrast="none"> Higher Credit Limits = More Cash Back</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">The annual expenditure limit for the enhanced 35% refundable tax credit has jumped from $3 million to $4.5 million. For Canadian-controlled private corporations (CCPCs), this means you can now claim up to </span><b><span data-contrast="auto">$1.575 million annually</span></b><span data-contrast="auto"> in refundable credits (up from $1.05 million).</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">What this means for you:</span></b><span data-contrast="auto"> If you’re maxing out your SR&ED claims, you just got a potential $525,000 annual boost to your cash flow.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol start="2">
<li aria-level="3">
<h3><b><span data-contrast="none"> Public Companies Finally Get Refundable Credits</span></b></h3>
</li>
</ol>
<p><i><span data-contrast="auto">Here’s where things get really interesting:</span></i><span data-contrast="auto"> Canadian public corporations can now access the same enhanced 35% refundable tax credit on up to $4.5 million of qualifying expenditures. </span><b><span data-contrast="auto">In the past, this was only available to CCPCs.</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">To qualify, public corporations must be Canadian resident, have shares listed on a designated stock exchange (or elect to be a public corporation), and not be controlled by non-residents.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">What this means for you:</span></b><span data-contrast="auto"> If you’re a public company that’s been stuck with non-refundable credits, you can now get actual cash back from your R&D investments.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol start="3">
<li aria-level="3">
<h3><b><span data-contrast="none"> Phase-Out Thresholds Get More Generous</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">The taxable capital phase-out thresholds have increased from $10-50 million to $15-75 million. Plus, CCPCs now have the option to use a gross revenue-based calculation instead of taxable capital, using the same structure as public corporations.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">What this means for you:</span></b><span data-contrast="auto"> More mid-sized companies can now access the full enhanced credit, and you have more flexibility in how eligibility is calculated.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<ol start="4">
<li aria-level="3">
<h3><b><span data-contrast="none"> Capital Expenditures Are Back</span></b></h3>
</li>
</ol>
<p><span data-contrast="auto">Capital expenditures are once again eligible for both SR&ED deductions and investment tax credits, applying to property acquired on or after December 16, 2024. The rules will be generally the same as those that were in effect before 2014.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">What this means for you:</span></b><span data-contrast="auto"> Equipment, machinery, and other capital investments for your R&D activities can now qualify for tax benefits again.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">Why Manufacturers Should Be Especially Excited</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">Manufacturing companies represent one of the largest segments of SR&ED claimants, and these changes are particularly beneficial for the sector. Here’s why:</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Equipment-Heavy R&D:</span></b><span data-contrast="auto"> Manufacturing R&D often involves significant capital investments in specialized equipment, prototyping machinery, and testing apparatus. With capital expenditures back in the program, manufacturers can now claim these substantial investments.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Scaling Challenges:</span></b><span data-contrast="auto"> Many manufacturing companies hit the previous thresholds as they scaled, losing access to enhanced credits just when they needed them most. The higher phase-out thresholds mean you can maintain eligibility longer as you grow.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Process Innovation:</span></b><span data-contrast="auto"> Manufacturing R&D often focuses on process improvements and automation – areas where the enhanced credits can provide crucial support for development costs.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">What You Need to Do Right Now</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<h3 aria-level="3"><b><span data-contrast="none">Stay Informed During the Consultation Period</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">With draft legislation now available and the consultation period open until September 12, 2025, this is an opportunity to review the proposed changes and provide feedback if you have specific concerns or suggestions. You can submit comments to </span><a href="mailto:consultation-legislation@fin.gc.ca"><span data-contrast="none">consultation-legislation@fin.gc.ca</span></a><span data-contrast="auto">.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="3"><b><span data-contrast="none">For Tax Years Starting After December 16, 2024</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<ol>
<li><b><span data-contrast="auto">Review your R&D roadmap:</span></b><span data-contrast="auto"> With higher credit limits, you might want to accelerate or expand planned R&D activities.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Reassess your equipment needs:</span></b><span data-contrast="auto"> Capital expenditures are back on the table. Equipment purchases you’ve been putting off might now qualify for significant tax benefits.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Check your eligibility:</span></b><span data-contrast="auto"> If you’re a public company or approaching the old thresholds, you might now qualify for enhanced credits.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
<li><b><span data-contrast="auto">Plan your timing:</span></b><span data-contrast="auto"> These measures are effective for taxation years beginning on or after December 16, 2024, so timing matters for when you start new R&D projects.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></li>
</ol>
<h3 aria-level="3"><b><span data-contrast="none">Documentation Is Still King</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":281,"335559739":281}"> </span></h3>
<p><span data-contrast="auto">Remember, getting the credits still depends on having solid documentation that proves your activities qualify as SR&ED. The government isn’t changing the fundamental requirements – just making the program more generous for those who meet them.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">The Bigger Picture</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The August 15, 2025 release of draft legislation confirms that Canada is moving forward with these SR&ED enhancements as part of a broader package of tax measures. SR&ED is one of the federal government’s largest tax expenditures, totaling $3.9 billion in foregone revenue in 2022-23. The government expects these enhancements to cost an additional $1.8 billion over the next five years, signaling a serious commitment to supporting Canadian innovation.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">This isn’t just a tweak, but a </span><i><span data-contrast="auto">significant investment in keeping Canadian companies competitive</span></i><span data-contrast="auto"> and encouraging them to do their R&D at home rather than moving it elsewhere.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h2 aria-level="2"><b><span data-contrast="none">What’s Coming Next</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h2>
<p><span data-contrast="auto">The government has hinted that these changes are just the beginning, with more SR&ED reforms expected to be announced in Budget 2025. They’re also considering implementing a patent box regime to provide additional tax incentives for intellectual property development.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<h3 aria-level="2"><b><span data-contrast="none">Getting the Most Out of These Changes</span></b><span data-ccp-props="{"134233117":false,"134233118":false,"134245418":true,"134245529":true,"335559738":299,"335559739":299}"> </span></h3>
<p><span data-contrast="auto">The enhanced SR&ED program is more generous than ever, but you still need to navigate it properly to maximize your benefits. Whether you’re a manufacturer investing in new production technologies, a tech company developing AI solutions, or any other business pushing the boundaries of innovation, these changes represent a real opportunity to improve your cash flow and accelerate your R&D efforts.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><span data-contrast="auto">The key is understanding how these changes apply to your specific situation and ensuring your R&D activities and documentation align with SR&ED requirements. With the right approach, these enhancements could provide the financial boost your innovation projects need to reach the next level.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
<p><b><span data-contrast="auto">Ready to explore how these SR&ED changes could impact your business?</span></b><span data-contrast="auto"> The enhanced program offers more opportunities than ever, but navigating the requirements still requires expertise. Consider consulting with SR&ED specialists to ensure you’re maximizing these new benefits while staying compliant with all the program requirements.</span><span data-ccp-props="{"134233117":false,"134233118":false,"335559738":240,"335559739":240}"> </span></p>
</div></div></div></div></div>
<p>The post <a href="https://boast.ai/blog/sr-ed/canadas-new-draft-sred-rules-higher-credits-public-company-eligibility-and-capital-expenditures-return/">Canada’s New Draft SR&ED Rules: Higher Credits, Public Company Eligibility, and Capital Expenditures Return</a> appeared first on <a href="https://boast.ai">Boast</a>.</p>
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