These days, it seems like everywhere you look, a new craft brewery is popping up around the corner. Craft breweries are a booming industry in Canada. The Canadian Craft Brewers Association alone represents over 1,100 small and independent craft breweries across Canada. From small towns to metropolitan centres, it’s a great time to be a craft beer enthusiast.
But with this many breweries on the block, how do they compete to win customers and sell their product? In short, innovation! Sours are made with fresh fruit, porters are brewed with real seaweed, and the IPAs are only getting hoppier.
What some brewers may not be aware of is that with all of the innovation comes eligibility for Scientific Research and Experimental Development (SR&ED) tax credits. The SR&ED program is designed to encourage innovation across various industries, including brewing. In this blog post, we’ll explore how breweries in Canada might be eligible for SR&ED and how they can leverage these incentives to drive creativity and growth.
SR&ED is a program administered by the Canadian government to support businesses engaged in research and development activities. It is one of the most generous R&D tax credit programs globally, providing financial incentives to companies that invest in advancing technology, improving processes, and exploring new scientific knowledge. While SR&ED is typically associated with high-tech industries, it can apply to various sectors, including the brewing industry.
SR&ED tax credits offer a fantastic opportunity for breweries in Canada to invest in research and experimentation, fueling innovation and growth within the industry. Breweries that meet the eligibility criteria and undertake qualifying activities can receive substantial financial support while contributing to the advancement of brewing knowledge and techniques. As the craft beer scene continues to thrive in Vancouver and beyond, the SR&ED program presents an opportunity to drive innovation that can quench the thirst for creativity and success in the Canadian brewing landscape.