Tax Breaks for Small Private Companies

Law firm Gowlings reports that industrial research by small and medium-sized businesses received a boost in the Federal Budget through an expansion of the scientific research and experimental development tax credit. The tax credit of 35 per cent will now be available to eligible private companies on their first $3 million in spending, up from $2 million under previous rules. And companies will now be eligible for at least part of the tax credit if they have a taxable income of $700,000 or less, and taxable capital of $50 million or less instead of the current $15 million or less.