The Yukon research and development tax credit (for individuals) is a refundable tax credit that allows residents of the Yukon to claim 15% of the eligible expenses paid to conduct scientific research and experimental development (SR&ED) activities within the Yukon territory. If the expenses were paid to the Yukon College, you can claim an additional 5% on your return.
Important: You must claim this tax credit within 12 months of the tax year in which your eligible expenses were paid.
The expenses that can be claimed as part of the Yukon research and development tax credit are the same as those that qualify for the federal scientific research and experimental development tax credit. Eligible expenses must have been paid for work that is systematic investigation or search carried out in the fields of science and/or technology through experimentation or analysis. These can include:
- Wages and salaries of employees directly engaged in the eligible R&D work (basic or applied research to advance scientific knowledge, or experimental development for creating or improving materials, devices, products, and processes)
- Overhead expenditures and materials
- Capital expenditures on machinery, equipment, and buildings
Eligible expenses don’t include work related to:
- market research or sales promotion
- quality control or routine testing of materials, devices, products or processes
- social sciences or humanities research
- prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas
- the commercial production of a new or improved material, device or product or the commercial use of a new or improved process
- style changes or
- routine data collection
If your share of the the credit was allocated to you from a trust, you can claim it on your tax return. The amount allocated to you can be found in box 45 of the T3 slip issued to you by the trust. H&R Block’s tax software will automatically use the amount you enter in box 45 on the T3 page when calculating this credit for you.
If, however, you don’t have an amount in box 45 of the T3 slip, you’ll need to enter the credit amount that was allocated to you by the trust into the respective field on the Yukon research and development tax credit for individuals (T1232) page of the software.
Where do I claim this?
Follow these steps in H&R Block’s 2018 tax software:
Before you begin, make sure you told us that you lived in the Yukon on December 31, 2018.
- On the PREPARE tab, click the IN THIS SECTION icon.
- In the Employment expenses box, click the Add This Topic button.
- Click the EMPLOYMENT icon. You'll find yourself here:
- Under the EXPENSES heading, select the checkbox labelled Yukon research and development tax credit for individuals (T1232), then click Continue.
- When you arrive at the page for the Yukon research and development tax credit for individuals, enter your information into the tax software.