SR&ED: the IT Industry

Successful technology companies are relentless in their quest to deliver cutting-edge technology. Companies that fail to adopt this outlook are rarely successful and often fall behind their more innovative competitors. To achieve their goals and overcome technological challenges, tech companies draw on experimentation and scientific analysis.

Efforts to improve the reliability, security, and functionality of products are often only made possible through investments in these areas. Also, basic decisions and development iterations related to overall product architecture, third-party integration, performance metrics, throughputs, data structures and algorithms, development platform bugs, and / or limitations commonly seen as byproducts of methodical research and development are commonly seen in the tech industry as well. A considerable portion of these activities qualifies for tax credits or cash refunds under the SR&ED program. 

Despite this, tech companies of all sizes face several misconceptions about SR&ED eligible work. Many have been discouraged from filing or have simply underclaimed qualified work. 


Typically Unclaimed SR&ED Expenditures in the IT Industry

  • Product (re)architecture to achieve incremental reductions in system latencies, memory footprint, resource utilization or processing times 
  • Cross-platform development
  • Development of advanced gaming or financial engines, platforms, or frameworks
  • Implementation of data conversion and data mining tools
  • Adding multi-language support capabilities
  • Advanced work with emulators
  • Improvements to security, reliability, and scalability of applications
  • Integration with legacy systems or third-party software
  • Providing interoperability between incompatible and / or stand-alone systems
  • Development of internal support and QA tools
  • IT consulting and client development projects
  • Advanced UI development work

*It’s important to note that routine data collection isn’t eligible under the SR&ED program guidelines.


Does Your Company Qualify for SR&ED Credits?

At Business Improvement Group, we help you identify eligible SR&ED activities, and build a robust case for filing a claim by collating accurate supporting documentation. If you have questions about SR&ED qualification or filing, get in touch with us here.

Did we mention 75% of the 18,000 yearly successful claimants are small businesses?


*The information above is meant for informational purposes only, and not to be used as advice.

You might also be interested in our post Maximizing SR&ED and Digital Media Tax Credit Claims.

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BIG has joined RSM Canada
BIG has joined RSM Canada as of Dec. 16, 2021
As part of RSM Canada, we’ll take the next step in our growth strategy, continuing to help our clients benefit from the credits and incentives services we offer, while enhancing our offerings with additional tax, audit and consulting services and resources.