Fact Sheet

May 2001

The Scientific Research and Experimental Development (SR&ED)
Action Plan

The SR&ED Program
The Scientific Research and Experimental Development (SR&ED) Program provides tax incentives to Canadian businesses that conduct SR&ED in Canada. The program is intended to encourage businesses to conduct SR&ED that will lead to new, improved, or technologically advanced products or processes. The Canada Customs and Revenue Agency (CCRA), which administers the SR&ED Program, receives more than 11,000 SR&ED tax credit claims per year, for about $1.5 billion.

The SR&ED Action Plan
In 1998, after listening to concerns expressed by industry representatives, the CCRA initiated work to improve its management and delivery of the SR&ED Program. The SR&ED Action Plan was the CCRA's direct response to recommendations made at a two-day SR&ED industry/government conference held in Vancouver in June 1998. The conference had been organized to facilitate industry's participation in improving the SR&ED Program and its administration.

Elements of the SR&ED Action Plan
The key elements of the SR&ED Action Plan were:

• focusing the program on the needs of its clients;
• developing a true partnership and open and ongoing consultation between the CCRA and industry;
• improving communications to enhance industry understanding of the program and CCRA responsiveness to industry concerns;
• implementing timely and effective dispute resolution mechanisms;
• making the SR&ED Program more independent, and focusing on science, technology and incentives;
• establishing a steering committee to oversee implementation of the Action Plan;
• establishing sector-specific committees to clarify SR&ED issues and to develop interpretation guidelines;
• streamlining the review process; and
• implementing ongoing joint industry and CCRA training.

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