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%

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