AEM Advocates for Canadian Research Tax Changes

Share:

1/27/2020

AEMAEM has presented a pre-Budget submission to the Minister of Finance, Bill Morneau, requesting the rules governing access to the Scientific Research and Experimental Development Tax Incentive Program (SR&ED) for equipment manufacturers be published and clarified. Over the past several decades, access to this program has been impeded as the submission process has become overly difficult, cumbersome and expensive. 

A significant factor in this has been the lack of knowledge of the sector at the Canada Revenue Agency (CRA), where the particularities of the research and development process for the sector were previously acknowledged and outlined in the Income Tax Information Circular, Machinery and Equipment Industry Application Paper (94-2). Unfortunately, this document was withdrawn in 2010, the practical result of which was a lack of information about how to apply for and consider the merits of the SR&ED application when it comes to innovation in equipment manufacturing.

AEM is advocating for the CRA to update and re-issue its Machinery and Equipment Industry Application Paper (94-2) concerning the SR&ED program. This step would have significant positive impacts on members and further encourage innovation in the industry. AEM is also in contact with the Minister of National Revenue, Diane Lebouthillier, the former Chair of the House of Commons Finance Committee, Wayne Easter, and previous members of the House of Commons Agriculture Committee, such as Lloyd Longfield, to move this file forward.

Subscribe to the AEM Industry Advisor for more AEM news and updates.

Advocacy & Legislation, AEM Updates

For more AEM news and updates, subscribe to the AEM Industry Advisor.

Related Articles

Navigating a New Era of Trade Challenges: Resources for Equipment Manufacturers

As new and expandedtariffs continue to loom over the U.S. economy,equipment manufacturers are bracing for serious economic impacts. Over the last several months, AEM has heard...

Secretary of Transportation Sean Duffy Discusses Infrastructure Priorities and Regulatory Relief with AEM’s Kip Eideberg

Secretary of Transportation Sean Duffy dropped by this year’s Celebration of Construction on the National Mall to connect with equipment manufacturers and learn more about the...

Digital Construction Technology: Transforming Infrastructure Development

Digital construction technology is revolutionizing how we build modern infrastructure. Advanced tools including embedded sensors, digital twins, 3D modeling, building...

Regulatory Agencies Celebrate Construction Equipment on the National Mall

This year’s Celebration of Construction on the National Mallproved once again to be a major draw for both administration officials and career staff looking to expand their...

Secretary of Labor Discusses Future of Manufacturing Workforce with AEM’s Kip Eideberg

Secretary of Labor Lori Chavez-DeRemer joined equipment manufacturers and more than 15,000 enthusiastic visitors on the National Mall for the 2025 edition of AEM’s Celebration...

View all Advocacy & Legislation