Supporting research and development in Canada
Encouraging innovation in Canada
Innovation is a top priority for the Government of Canada as it drives economic growth and provides skilled job opportunities for Canadians. To support this priority and encourage innovation and entrepreneurship, the Canada Revenue Agency (CRA) administers the Scientific Research and Experimental Development (SR&ED) Program.
The SR&ED Program is a federal tax incentive program that fosters technological advancements that stimulate economic growth and competitiveness. The SR&ED Program is one of the most generous R&D tax credit programs in the world.
Every year, approximately 16,000 businesses receive tax credits totaling close to $3 billion.
Helping businesses of all sizes, from all sectors
The SR&ED Program isn't just for high-tech companies. All businesses in Canada that invest in R&D can apply for the SR&ED tax incentives, no matter their size, industry sector, or field of technology.
The benefits of claiming R&D expenses
The SR&ED Program gives claimants refunds or tax credits for qualifying expenditures on eligible research and development work. If your R&D work is eligible, your investment tax credit could be 15% or 35% of your qualifying expenditures.
For example, a Canadian-controlled private corporation that claimed $5M in qualified SR&ED expenditures could get up to $1.17M refundable (cash back) and $180,000 non-refundable tax credit.
This funding helps businesses innovate and expand, thereby creating more jobs, diversifying the economy, and improving the quality of life for Canadians.
SR&ED services, resources and contacts
- Try the CRA's Self-Assessment and Learning Tool to help determine if your R&D work may be eligible for the SR&ED tax incentives.
- Request a pre-claim consultation or a pre-claim review to make sure that your projects will qualify for SR&ED before you file your claim.
- Register for one of the CRA's online seminars where you can learn more about the SR&ED incentives and how to claim them.
- By phone:
- If you would like to speak to a CRA agent about the SR&ED Program, you can contact your tax services office.
The Canada Revenue Agency (CRA) is always working to improve the SR&ED Program by focusing on the needs of Canadian businesses and putting people first. To raise awareness about the program, the CRA has joined forces with other government departments, universities, and colleges to reach current (and future) businesses.
The CRA has also implemented a number of initiatives to improve the consistency and quality of the claim review process. Moving forward, the CRA will continue to work with stakeholders, tax practitioners, and industry representatives to improve how it administers the SR&ED tax incentives.
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