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 Unfortunately, this document was withdrawn in 2010, the practical result of which was a lack of information about how to apply for and consider the merits of the SR&ED application when it comes to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

AEM Announces Third Installment of Award-Winning 'Through the Lens' Photo Series Capturing the Faces of American Equipment Manufacturing

AEM today unveiled the third installment of its acclaimed "Through the Lens” photo series. Captured by documentary photographer Brad Romano, the latest edition spotlights the...

Wisconsin Finalizes Budget With $20 Million for Dairy Cattle Innovation

Last week, Governor Evers approved Wisconsin’s 2025-2027 biennial budget, which included key funding that would enable more dairy farmers to modernize their equipment. Although...

CONEXPO-CON/AGG Sponsors POLTICO Focus’ “Building America’s Promise” Content Hub

On Friday, POLITICO Focus launched “Building America’s Promise,” a new digital content hub sponsored by CONEXPO-CON/AGG and AEM. The experience highlights the people and...

AEM and Grote Industries Deliver Keys of Ford F-150 to Winner of Manufacturing Challenge

The Association of Equipment Manufacturers (AEM) today awarded a brand-new Ford F-150 to William Corwin of AEM member company Grote Industries, the grand prize winner of AEM’s...

AEM Announces Texas Leg of Historic “AEM Manufacturing Express” Tour

AEM is proud to announce the return of the “AEM Manufacturing Express,”which will hit the road this August for a tour across Texas.At each of the 22 stops at manufacturing...

View all Advocacy & Legislation