Scientific Research & Experimental Development Tax Credits

View the Government of Canada’s SR&ED Website

Offering:
Canadian-controlled private corporations (CCPC) earn an investment tax credit (ITC) of 35% for the first $3 million of qualified expenditures and 15% on any excess.
Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 15% of qualified expenditures.

Dates:
Annual claim, submit a claim with the T2 corporation or T1 individual income tax return, or within 12 months of the income tax return’s filing due date for the year in which the SR&ED expenditure was incurred.

Requirements:
Only SR&ED carried out in Canada qualifies for this program.
Must be a CCPC to qualify for the 35% ITC for the first $3 million of qualified expenditures.

Objectives:
The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada.