• Scientific Research and Experimental Development (SR&ED) is a government incentive program to promote R&D in Canada.

  • The Canadian government delivers over $3 billion per year in Investment Tax Credits (ITCs) to innovative companies. ITCs can come in the form of refundable credits (cash) or pre-paid taxes.

  • SR&ED applies to any field of science or technology, where a company attempts to bridge a knowledge gap in the underlying science or technology.

What is the basic process?

Key Attributes

 Industry Agnostic

Any field of science or technology is eligible, if the work resolves a technological uncertainty.

Competitive

Returning up to 41.5% of costs back to the claimant, the SR&ED program is a key competitive advantage.

Uncapped

There’s no budgetary cap on SR&ED credits. If you meet the program criteria, you are eligible to receive the credits.

Historical & Retroactive

Costs must be incurred, and then a claim can be submitted up to 18 months past the Fiscal Year End.

Is my project eligible?

SR&ED eligibility is determined on a project-by-project basis by Canada Revenue Agency (CRA).

  • Was there a Scientific or Technological Uncertainty?
    • A technological uncertainty occurs when there is no appropriate solution to a problem using techniques previously validated for that purpose.
  • Did you take a systematic investigation to tackle the uncertainty? 
    • You undertake an experiment or use the scientific method to investigate a solution. This demonstrates an intent to gain new understanding of the science or technology.
  • Contact us for a complementary scoping session of your project. Our Technology Advisors can qualify your project at no cost.

Strong Indicators of SR&ED Eligibility

  • There is no validated technology in your industry to solve a problem
  • You employ high-powered technical teams
  • You create prototype units or products for testing purposes only
  • You attempt new technology that exceeds current industry performance standards
  • You are eligible to receive other government funding for technology development (e.g. IRAP)
  • Your work is patentable (whether you patent it or not)
  • Your technology is written up (or could be) in trade or peer-reviewed journals
  • You make technical presentations at conferences
  • Your work requires a systematic investigation to develop new techniques

SR&ED exists outside the laboratory. Most successful claims are “Experimental Development,” which includes work done in a commercial or industrial setting.

You’re eligible even if your project fails. SR&ED supports the attempt to advance technology.

You’re eligible even if you “reinvent the wheel.” If your competitor’s technology is proprietary and you don’t have access to their IP, you can claim the costs for your development.