SR&ED (Scientific Research & Experimental Development tax credit)
Recover up to a third of your R&D costs — the credit most Canadian SMEs leave on the table.
- Level
- Federal
- Amount
- Refunds 15–35% of qualifying R&D spend; enhanced 35% refundable limit **doubled to $6M** (Budget 2025) — up to ~$2.1M/yr refundable for CCPCs
- What it funds
- Experimental development, applied research, technological advancement
- Eligibility
- Canadian-controlled private corporations doing qualifying R&D; claim via annual corporate tax return, retroactive up to 18 months after fiscal year-end
- 2026 notes
- Most commonly missed credit; ~40–50% approval (formulaic). Government assistance reduces the claim base.
- Awareness
- known