Scientific Research Experimental Development (SR&ED)

Scientific Research and Experimental Development (SR&ED) is a federal tax incentive program, implemented by the CRA to encourage Canadian businesses to conduct research and development in Canada. The SR&ED program provides cash refunds and/or tax credits for expenditures on eligible R&D work done in Canada.

Corporations, individuals and partners of a partnership can all take advantage of the incentives. It is a common misconception that only large corporations with massive R&D initiatives can participate. Generally, there is a tax credit of at least 15% (and as much as 35% on the first $3 million for CCPC’s) on whatever eligible research and development expenditures you have.

There are some strict rules for the work that is eligible. In order to apply for SR&ED credits, you need to have general information on the research and development being performed, project information, financial information, statistical information, and certifications.

CRA Website – Scientific Research & Experimental Development