Scientific Research and Experimental Development (SR&ED) Tax Incentive Program

To offer financial assistance in the form of tax credits to Canadian businesses conducting scientific research and experimental development in Canada.

Canada Revenue Agency

Overview of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program program:

The Scientific Research and Experimental Development (SR&ED) tax incentives are intended to encourage businesses to conduct research and development in Canada. Corporations, individuals, trusts, and partnerships that conduct eligible work may be able to claim SR&ED tax incentives for the year.

Benefits of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program program:

Canadian-controlled private corporations may receive an investment tax credit of 35% up to the first $3 million and of 20% on any excess amount. Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20% of qualified expenditures. Eligible expenditures include salaries and wages, materials, SR&ED contracts, lease costs of equipment, overhead, third-party payments, and capital expenditures.

Eligibility criteria of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program program:

Eligible work:
Basic Research
Applied Research
Experimental development
Support work
Eligible support work:
Engineering
Design
Operations research
Mathematical analysis
Computer programming
Data collection
Testing
Psychological research
For your work to be eligible for SR&ED tax incentives, it must be conducted in Canada and meet both of the following requirements:
The work must be conducted for the advancement of scientific knowledge or for the purpose of achieving a technological advancement
The work must be a systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis