Why would the Government want to hand out this much money to companies?
The R&D tax credit is a G7 initiative dictated by the International Organization for Economic Co-operation and Development (OECD). The Canadian government views the SR&ED tax credit program as integral to remaining competitive in the global marketplace. It is only through technology and innovation that we will be able to successfully compete against the cheap offshore labour rates of the east. In addition to cheap labour rates, our government also recognizes that without providing immediate tax relief to companies that undertake technology projects that have uncertain outcomes and many risks, their future will be in question and possibly jeopardized. This tax credit program is now available in 28 different countries around the world. Everyone wants and needs these high tech jobs.