Ontario’s Wine Industry – Harvesting the Benefits of SR&ED

How wonderful it is to proudly browse the wide selection of Ontario’s wines at your local LCBO. Knowing that your own winery is both a driving force in the Canadian economy and an innovator of the local wine industry can certainly be rewarding, both personally and professionally.From challenges to opportunitiesQuite often the goal of a grape grower to produce a consistent, high-quality brand of wine is met with many unexpected challenges. With the erratic situation of the Canadian economy following the recession, wine makers of Ontario struggle to produce at the risk of manufacturing downsizing. In addition to economic factors, the wine industry of Ontario is faced with a higher stringency under Vintners Quality Alliance (VQA) regulations, and the push from Wine Council of Ontario (WCO) to raise industry standards by participating in programs like Sustainable Winemaking Ontario.For the individual winery of Ontario, keeping up with competition means continuously utilizing new technologies and finding innovative ways to provide a premium product, despite such challenges. Simply put, this boils down to having the necessary financial opportunities become available to maintain a healthy competition. Are these opportunities available to the wine industry of Ontario? Yes – SR&ED is the answer!The SR&ED programThe SR&ED program (Scientific Research & Experimental Development) aims to reimburse companies for their experimental development expenses. For over 20 years and with about $4 billion a year in funding, it remains the largest single source of federal funding for R&D in Canada. The goal is to make creativity and innovation affordable in the Canadian business environment and foster future development.The program is highly relevant to businesses who are naturally involved in shop-floor
experimentation. R&D projects that qualify under the program include (1) work undertaken for the purpose of achieving technological advancement and/or (2) creating new, or improving existing materials, devices, products or processes. The actual refund amount depends on proper identification and qualification of eligible expenditures.Wineries in Ontario serve as ideal candidates for such funding. Typical SR&ED eligible activities that apply to the wine industry include:Developing new wines
Altering soil chemistry
Handling and harvesting technology
Improved bottling techniques
Altering practice as result of the weather
Many more…
Wineries and growers may be regularly overcoming such obstacles in daily operation. Your innovative solutions to these problems may very well qualify you for some SR&ED funding. The program supports any attempts to improve your business operations, even if they do not prove successful.Which costs qualify?Working on new ideas takes time, wastes material and requires equipment modification. The SR&ED program allows retrieving these expenses:68% of wages and salaries of personnel directly involved in R&D
41% of sub-contractor expenses
22% of capital expenditures
The refund has no strings attached – as a winery owner you are free to spend it anyway you like – buy new equipment, attempt new projects, or give everyone a big bonus – the decision is yours!How we can help?Submitting a SR&ED claim is a fairly complex and time consuming process. It involves properly identifying eligible activities within your business, associating the appropriate costs to these projects and completing a highly technical report to support the claim.Using the extensive experience of a professional consultancy like ourselves, business owners have the opportunity to review their potential for qualification, and complete the application process in a few hours, and with no up-front costs. We get paid when you do!Discovering that your business is eligible for SR&ED funding makes a world of difference. The goal is to help your winery take potential technical risks that will eventually lead to significant improvements in your industry.