Claim your Scientific Research and Experimental Development (SR&ED) tax incentives
What is the purpose of the program?
The Scientific Research and Experimental Development Program offers tax incentives that encourages and supports scientific research and experimental development (SR&ED). The program does this by letting you deduct your SR&ED costs from your income for tax purposes. Also, the program gives you an investment tax credit that you can use to reduce your income tax.
To help those who are filing a claim to the program for the first time, we offer the First-Time Claimant Advisory Service. For all other claimants, we also offer the SR&ED Self-Assessment and Learning Tool, a Pre-Claim Consultation, and Pre-Claim Review to help you with the application process.
What businesses are eligible?
Any business that is doing basic or applied research, or is advancing technology to improve or develop new materials, devices, products or processes, may be eligible to make a claim under the program.
Eligible businesses are:
- Canadian-controlled private corporations
- other corporations
- individuals and trusts
- members of a partnership
For more details on who is eligible, go to Who can claim the incentives?
How can your company benefit?
The SR&ED program can provide financial incentives by:
- letting you deduct SR&ED expenditures from your income for tax purposes
- providing you with an SR&ED investment tax credit that you can use to reduce your income tax, payable under Part I of the Income Tax Act
You may also be able to deduct SR&ED costs to reduce your tax liability in the current year or carry those costs forward indefinitely to reduce your tax liability in future years.
How do you make a claim?
To begin, you should confirm that your work meets the definition of SR&ED in the Income Tax Act. The CRA’s eligibility policy explains how to identify work that meets this definition.
To make an SR&ED claim, you must file an income tax return. You also have to file:
And one of the following:
The required forms for provinces and territories
Be sure to file the applicable forms by your SR&ED reporting deadline.The CRA is committed to providing fair treatment to all claimants of the SR&ED Program. If you do not agree with the findings of the review of your SR&ED claim, or if you have any concerns with how the review was conducted, you are encouraged to take specific steps to resolve your concerns.
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