Up To A 35% Tax Credit Available to Canadian Businesses Conducting Research and Development
The Canada Revenue Agency is providing more than $3M in tax incentives through the Scientific Research and Experimental Development (SR&ED) program. This tax credit is used to encourage Canadian businesses of all sizes and in all sectors to conduct research and development in Canada.
These tax incentives come in three forms:
- An income tax deduction
- An investment tax credit (ITC)
- A refund
Eligible Activities
To qualify to receive an incentive through SR&ED, the research and/or development projects must:
- Be conducted in Canada
- Be basic research, applied research or experimental development
- Be conducted to gain new knowledge that helps to achieve your objectives or resolve a problem
- Be a systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis
Funding Details
- Canadian-controlled private corporations
- Can earn a refundable ITC at a rate of 15% - 35% on qualified expenditures of $3 million or more
- Individuals and trusts
- Can earn a refundable ITC at a rate of 15%
- Other corporations
- Can earn a non-refundable ITC at a rate of 15%
