News Summary

The Canadian government is proposing changes to the Scientific Research and Experimental Development (SR&ED) program, a major R&D tax credit initiative, which could significantly benefit the tech sector and improve national productivity. Key reforms include reintroducing capital expenditures as claimable expenses, allowing public companies to access the preferred tax credit rate, and increasing the total claimable amounts. These changes are expected to help growth-stage companies invest more in research and scale faster. The draft legislation, now open for public feedback, could apply retroactively to companies with fiscal years ending in 2025. Experts argue that this move could address longstanding productivity issues in Canada and stimulate innovation across various tech sectors.