What is SR&ED?

The Scientific Research & Experimental Development (SR&ED) Tax Credit encourages companies to tackle risky, innovative projects. It supports efforts to overcome technological uncertainty—where existing solutions can’t easily achieve your goals. Expenses from these projects may qualify for tax credits.

By the Numbers:

• Canada’s largest business tax credit: $4.2 billion in 2024

• 21,500 claims annually

• 35% enhanced federal rate (with provincial additions)

• 91% of claims approved as filed

What Qualifies?

Eligible projects involve:

• Technological Uncertainty: No existing solution for the problem.

• Systematic Investigation: A logical, scientific approach to resolving the issue.

• Technological Advancement: New knowledge gained about the technology.

• Documentation: Evidence supporting the work done.

Examples include:

• Solving complex technical problems.

• Making incremental improvements.

• Failed projects that provided valuable insights.

Eligible Expenses:

• Employee hours (including an overhead bonus).

• Materials used in testing.

• Subcontractor costs (at a reduced rate).

How to Apply:

File your SR&ED claim with your year-end tax return or as an amendment within 18 months of your fiscal year-end. Include a short narrative describing the project and how it meets the criteria.

Get Started:

To see how much you could qualify for, book a free evaluation today!