R&D Tax Credit: Engineering & Manufacturing

R&D in Engineering and manufacturing may be present in the digital design and computer modelling, work to the building and testing prototypes and ongoing analysis, further testing and developing.

Examples of Eligible R&D activities and questions to consider:

  • Have you developed a new or changed product or process that has characteristics substantially different from those currently available (i.e. more efficient, robust, flexible, less expensive, etc.)?
  • Have you developed any prototypes? If you were to develop subsequent models, would they have new and different characteristics?
  • Did you have any failures in product or process development or improvement?
  • Have any of your products or processes taken more time to develop than you expected?
  • Have you used or combined technologies in new ways?
  • Integrating new materials to improve product performance and manufacturing process;
  • Streamlining manufacturing process through automation;
  • Developing a pilot plant to investigate concept of a new process to increase throughput.
  • Developing processes for scale up to full production.

Sectors of Engineering that may qualify:

  • Aerospace engineering
  • Automotive engineering
  • Biochemical engineering
  • Construction engineering
  • Infrastructure engineering
  • Chemical engineering
  • Civil engineering
  • Electrical engineering
  • Green engineering
  • Geotechnical engineering
  • Marine technology engineering
  • Engineering relating to materials
  • Mechanical engineering
  • Petrochemical engineering
  • Plant engineering
  • Power engineering
  • Process engineering
  • Software engineering
  • Telecoms and network engineering
  • Transportation engineering

Expenditures can include wages, eligible materials and software, apportioned utility and eligible third party costs.