SRED Tax Credit Financing is a financial transaction through which a company sells its SRED tax credit (federal and provincial) to raise immediate cash.  Instead of waiting for government reviewers to approve your claim, it allows you to access up to $1,000,000 quickly. 

This facility is available to a qualifying company that has had an arm's length qualified third party prepare the relevant SRED claim.  If the company has a successful track record of preparing and submitting its own SRED claims and recovering the tax credits, that company's claim may be considered for SRED Tax Credit Financing.

Up to 70% of the SRED Tax Credit Claim may be financed.

For further information, please contact us.

The amount of SRED Tax Credit rebates receivable from a Province pursuant to its SRED tax credit legislation reduces the amount that is eligible for claim under the Federal program.

For example, let’s say the claimant has $100,000 in qualifying expenditures and claims a 10% provincial SRED tax credit.  For Federal SRED filing purposes, that credit effectively reduces the $100,000 eligible costs to $90,000.   If the Federal rate for that company is 35% (as it is for eligible Canadian controlled private corporations), that effectively generates a federal credit of 35% of $90,000, which is $31,500.  This is 31.5% of the $100,000, so the combined Federal and Provincial credits are 41.5% of the qualifying expenditures.