What is the SR&ED program?

The Scientific Research and Experimental Development (SR&ED) program is a Canadian government program that provides cash refunds and/or tax credits to Canadian businesses conducting research and development in Canada. This federal tax incentive program is designed to encourage businesses to conduct research activities to create and improve technologically advanced products and processes.

How can the SR&ED program benefit my company?

Your company can receive a refund of over 60% of eligible research and development (R&D) expenditures, depending on the type of research expenses. The refund can come in the form of cash back or Income Tax Credits (ITC). ITC are valuable assets that can be carried back 3 years and forward 20 years.

Cash refunds and ITC can be used to:

  • increase R&D budget
  • add shareholder value
  • improve product marketing

What kind of projects are eligible for the SR&ED program?

To be eligible for the SR&ED program, an R&D project must advance scientific and/or technological knowledge, products and/or processes.

Eligible projects include:

  • experimental development to create or improve new products or processes
  • applied or theoretical research to advance scientific knowledge
  • support work, provided that it is scientific or technological work in direct support of the above

What expenditures qualify for the SR&ED Program?

Qualifying expenditures may include:

  • labour (salaried and contract)
  • materials
  • overhead costs
  • capital expenditures
  • leasing costs for R&D equipment
  • third party payments (e.g. association or university research contributions)

How do I apply for SR&ED tax credits?

You must submit an SR&ED claim to the Canada Revenue Agency (CRA) within 18 months of your fiscal year-end.

An SR&ED claim consists of:

  • several financial forms issued by CRA and provincial governments
  • a well-written and concise technical report describing the R&D projects you are claiming for the tax year

The technical report must document the following:

  • scientific and/or technological objectives of the R&D projects
  • scientific and/or technological advancements made from the R&D
  • scientific and/or technological obstacles associated with the R&D
  • the work done to overcome the obstacles

How does Technology Tax Credits help to file SR&ED claims?

We do it all for you. We collect the financial data, conduct technical interviews, write the technical reports, and compile the claim. We also submit claims to Canada Revenue Agency and support your company through any financial or technical reviews. We save you time and get the refund you are entitled to.

Read more about our SR&ED Claim Process.