The mining sector is a major employer within Canada and a key area of focus of the government’s innovation policy. Although many industries are taking full advantage of the SR&ED program, we’ve learned that many companies in the mining industry haven’t been. They’re either not filing or they’ve only been capturing some projects in their claims.
To help you understand if your mining company could be eligible for SR&ED, first, we’ll go over what criteria the work has to meet.
The 3 Key Criteria for SR&ED Eligibility
- Technological uncertainty – whether or not the objective can be achieved is unknown based on generally available scientific / technical knowledge or experience
- Technological content – evidence that qualified personnel with relevant experience in science, technology or engineering conducted a systematic investigation through experiment or analysis
- Technological advancement – the work must generate information that advances understanding of scientific relations or technologies
While these criteria might sound like you need a team of engineers and scientists doing the work, it can also be done by programmers, project managers, technicians, skilled tradespeople, and process operators. As long as you have technically competent and qualified people on the job.
What Are Some Indicators of SR&ED Activity in the Mining Sector?
- Developing new equipment for use in mining operations or exploration
- Building pilot plants or conducting mill trials
- Pursuing improved site rehabilitation or remediation capability
- Developing tools that assist in planning or conducting mining operations or exploration
- Developing new or improved mineral exploration, extraction, extraction or processing technologies
- Designing or building equipment that is safer than previous designs, greatly increases productivity or meets new environmental standards
- Recommissioning abandoned mines
- Changing or upgrading manufacturing processes
- Trying to make processes and products faster
- Having engineers and / or technologists on staff
- The company is challenged to improve grade control, mill process efficiency, or reduce mining costs
Why the Mining Community Turns to Business Improvement Group
Business Improvement Group provides leading-edge services to companies looking to maximize their SR&ED tax credits. Our team of experts positions us to service our clients uniquely; our clients will be assigned a consultant with a deep understanding of their industry.
If you would like to ask one of our experts about qualifications or filing, request a free consultation here.
*The information above is meant for informational purposes only, and not to be used as advice.