Some details of the SRED program in the plastics sector

SHORT DESCRIPTION OF THE PROGRAM

The government of Canada's Innovation Strategy sets ambitious targets that promise to make Canada one of the most innovative countries in the world. The intend is to position Canada as one of the top five countries in the world for research and development (R&D) performance by 2010. (for more information, visit the portal "Innovation in Canada" from the Government of Canada site).

To reach these goals, the federal government (supported by the provincial* government) offer, among others, generous tax reimbursements and credits for expenses related to projects eligible to the Scientific Research and Experimental Development (SR&ED) program. These tax incentives are among the most generous in the world with the highest spread in terms of application; they can represent from 37% up to 72% of expenses spent on the development of new or improved products or processes.

The program's purpose is to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes.

*Québec. Some other provinces offer tax incentives.