For example, the Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development in Canada that will lead to new, improved, or technologically advanced products or processes.

Consider the advantages for those projects that qualify. Canadian-controlled private corporations can earn an ITC of 35 percent up to the first $2 million of qualified expenditures for SR&ED carried out in Canada, and 20 percent on any excess amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20 percent of qualified expenditures for SR&ED carried out in Canada.

Since it's a refundable tax credit, you get the refund in cash, even if you don't make a profit. And beyond that, you receive a full tax deduction in the year you incur the expenses – even if they're capital expenses. You can also carry over R&D deductions to subsequent years.

And what if your project's a dud? Even if the R&D is ultimately unsuccessful, you have still earned the credits.

Finally, if the project is something you are going to do anyway, filing for your tax claim is a no-brainer… it's free money back!