The Scientific Research and Experimental Development (SR&ED) federal tax incentive program is the largest source of federal government support for research and development. The program is designed to encourage Canadian businesses of all sizes and in all sectors to conduct R&D in Canada.
One of the largest misconceptions about the SR&ED tax incentive program is that it is only for large corporations. In 2015 the SR&ED Program provided approximately $3.0 billion of tax assistance and processed over 19,000 distinct claimants. Of these, about 75% were small businesses. The program is administered by the Canada Revenue Agency.
How can the tax incentive program benefit your startup?
- The SR&ED tax incentive program provides financial incentives in the form of tax credits at 15% and 35% to qualified expenditures. Where the 35% rate can be refundable after reducing taxes payable to nil.
Find how to claim your SR&ED tax incentives here.
Who can claim the tax incentives?
- Canadian-Controlled Private Corporations
- Other Corporations
- Individuals and Trusts
- Members of Partnerships
Check out this short video on who can claim tax incentives.
What work qualifies for SR&ED tax incentives?
- Basic research
- Applied research
- Experimental development
Watch this short video on what work qualifies for tax incentives.
Have more questions about the SR&ED tax incentive program? Sign up for a webinar here.