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

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