Scientific Research and Experimental Development (SR&ED) Tax Incentives

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

Corporations, individuals, trusts, and partnerships that conduct eligible scientific research and experimental development work in Canada may claim SR&ED tax incentives. Claimants must link their eligible work to expenditures they can claim and submit their SR&ED claim with their income tax return for the year.

2026 notes

Most commonly missed credit; ~40–50% approval (formulaic). Government assistance reduces the claim base.

Awareness

known