Scientific research and experimental development tax incentive – Eligibility

If your organization is doing research and development, then the Government of Canada wants to help. Maybe you have developed a new product or process, or improved an existing one. If you conducted research and development to do any of this, you may qualify.

Does your work qualify for the tax incentives?

To qualify to receive the scientific research and experimental development (SR&ED) tax incentive, the work, for the most part, must be conducted in Canada and must be either basic research, applied research or experimental development.

The SR&ED work must be a systematic investigation or search through experiment or analysis. This means that each approach you take to resolve your uncertainty should be a planned experiment based on an idea or a concept. You start with a problem that you cannot solve with your existing scientific or technological knowledge base. Then, you suggest new ideas for solving that problem and you test them. This will eventually lead you to increase your scientific or technological knowledge base. Generally, your work qualifies as SR&ED if you are doing a systematic investigation or search, through experiment or analysis, to advance science or technology.

The following types of work are not SR&ED:

You can also read our Eligibility of Work for SR&ED Investment Tax Credits Policy, which explains what work meets the definition of SR&ED.

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