Neocon International gets the credit
Neocon International, a division of Exco Technologies Ltd., designs and manufactures thermoformed, pressure formed, blow molded, and injection molded plastic products for the automotive, transportation, and marine industries. This includes cargo control equipment, plastic linings and trays, and other accessories for customers such as Honda, Hyundai, Nissan, Subaru, and Toyota, just to name a few. The company also carries out prototyping and product verification testing from its world-class facility in the Burnside Industrial Park.
While hard at it innovating new product concepts, the company was not taking full advantage of opportunities around R&D incentives. So the Greater Halifax Partnership put the company in touch with the Business Development Bank of Canada's consulting group to discuss the Scientific Research & Experimental Development (SR&ED) program and Neocon's potential for making a claim.
The SR&ED program is an industrial R&D tax incentive offered through the Canada Revenue Agency. It encourages companies of all sizes and in all sectors to conduct R&D in Canada and is the largest single source of federal government support for industrial R&D. Companies can earn an investment tax credit of 35% up to the first $2 million of qualified expenditures and 20% on excess amounts.
Making a SR&ED claim demands detailed documentation, tax law knowledge, and the ability to clearly describe technical R&D projects and processes. After hearing about the benefits -- including Neocon's eligibility for a sizeable claim -- the company signed on with the Business Development Bank of Canada's consultants to complete the intricate application process for the two most recent fiscal years. As a result, Neocon International was successful in receiving a significant tax credit.
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