SR&ED news and updates

Instructions pertaining to new line numbers in Part 2:

Line 207 – Canada Research and Development Classification (CRDC) field of research code

From the Statistics Canada Canadian Research and Development Classification (CRDC) 2020 Version 2.0, go to the list beginning on page 18 and select the field of research (FOR) code that best describes the primary field in which you were attempting to achieve a scientific or technological advancement. Enter only the first five digits of the code (RDF#####).

Note that the FOR code that you select for each SR&ED project may differ from the field of science or technology in which you carry out your regular business.

Statistics Canada uses the FOR code you enter on this line to collect data related to research and development conducted in Canada.

Lines 212 and 214 – Pre-claim approval case number

If you got pre-claim approval for this project through the CRA's pre-claim approval process, tick the box on line 212. Enter the pre-claim approval case number on line 214.

Lines 262 and 263 - Capital expenditures information

Line 262

If you are claiming capital expenditures, enter the names of the 10 most expensive SR&ED properties you acquired after December 15, 2024, used in each project. Only include the names of depreciable property that you claimed on line 390 of Form T661 in this tax year.

Line 263

Write the percentage of total operating time for each SR&ED property you acquired after December 15, 2024, from line 262. Calculate the total operating time for each tax year. Then calculate the operating time in the project as a percentage of the total operating time for the entire tax year, for each depreciable property listed on line 262.

Instructions pertaining to new line numbers in Part 3:

Line 350 – Lease costs of equipment used all or substantially all for SR&ED

Enter the lease costs you incurred after December 15, 2024, for equipment that you used all or substantially all (ASA) (90% of the time or more) to carry out SR&ED in Canada. Lease costs you incurred before December 16, 2024, do not qualify for SR&ED tax incentives. You must calculate the SR&ED use as a percentage of the total operating time for each tax year. Generally, operating time means the time the equipment usually runs or functions. If your tax year began before December 16, 2024, you must calculate the SR&ED use as a percentage of the total operating time for the period after December 15, 2024. If you are using the proxy method, do not include lease costs for general purpose office equipment or furniture (GPOEF).

Line 355 – Lease costs of equipment used primarily for SR&ED

Enter “0” if you are using the traditional method.

If you are using the proxy method, enter half of the lease costs you incurred after December 15, 2024, for equipment that you used primarily (50% of the time but less than 90%) for SR&ED. Do not enter the lease costs for general purpose office equipment or furniture. You must calculate the SR&ED use as a percentage of the total operating time in the tax year. Generally, operating time means the time the equipment usually runs or functions. If your tax began before December 16, 2024, calculate SR&ED use as a percentage of the total operating time after December 15, 2024. Lease costs you incurred before December 16, 2024, do not qualify for SR&ED tax incentives.

Note

When you use the traditional method, you may be able to claim the lease costs you incurred after December 15, 2024, for equipment you used in SR&ED less than 90% of the time. Claim these costs on line 360 as overhead and other expenditures.

Line 380 – Total current SR&ED expenditures

The total current SR&ED expenditures on line 380 is the total of lines 306 to 370, not including line 315.

Line 390 – Capital Expenditures for depreciable property acquired after December 15, 2024

Enter the amount of SR&ED capital expenditures you made after December 15, 2024. Expenditures for depreciable property you acquired before December 16, 2024, do not qualify for SR&ED tax incentives.

An SR&ED capital expenditure is an expenditure you made to acquire new or used depreciable property that you intended to use in either of the following ways:

• use all or substantially all (ASA) (90% or more) of the operating time in its expected useful life to perform SR&ED in Canada
• consume ASA (90% or more) of its value to perform SR&ED in Canada

In addition, the capital expenditure must be for SR&ED carried out in Canada and the SR&ED must be related to your business. Depreciable property can only be claimed as a capital expenditure when it becomes available for use. Therefore, only the expenditures you made for depreciable property that became available for use after December 15, 2024, will qualify for SR&ED tax incentives. You must consider the intended use of the property in the year in which you claim the expenditure and over its expected useful life. When you sell the SR&ED property or convert it to commercial use, there may be an SR&ED investment tax credit (ITC) recapture. There may also be a recapture of capital cost allowance (CCA). Refer to line 440 for more details on the recapture of CCA.

Non-depreciable assets, buildings, and leasehold interests in buildings are not eligible SR&ED capital expenditures. Enter the expenditures you incurred for used equipment at line 390. These expenditures are part of the pool of deductible SR&ED expenditures but do not qualify for the SR&ED investment tax credit (ITC) (refer to line 532).

Example

After December 15, 2024, a claimant acquires land, a building, and equipment to be used ASA to perform SR&ED. The only eligible expenditure is the equipment because it was available for use after December 15, 2024. Land is a non-depreciable asset, and buildings are generally excluded. The only difference in determining capital expenditures under the traditional method and the proxy method is that you cannot include expenditures for general purpose office equipment or furniture if you use the proxy method.

Notes

1. The capital expenditures claimed on line 390 must not be included on Schedule T2SCH8, Capital Cost Allowance (CCA).
2. You may be entitled to include capital expenditures that do not meet the ASA test in your SR&ED claim if they qualify as shared-use-equipment (SUE). Refer to line 504 for more details on SUE.
3. There may be an SR&ED investment tax credit (ITC) recapture when you sell the SR&ED property or convert it to commercial use. Refer to the Recapture of SR&ED Investment Tax Credit Policy for information on how to calculate the recapture amount. Calculate the amount of recapture using Schedule T2SCH31, Investment Tax Credit – Corporations or Form T2038-IND, Investment Tax Credit (Individuals) and add the amount to Part I - Tax Payable. Members of a partnership can also use these forms.

Line 400 – Total allowable SR&ED expenditures

Allowable SR&ED expenditures are the total current and capital expenditures you made in the tax year. On line 400, enter the total of the amounts from lines 380 and 390.

Instructions pertaining to new line numbers in Part 4:

You must separate your expenditures between current expenditures and capital expenditures.

Line 504 – Expenditures on shared-use-equipment (SUE)

You can earn a partial SR&ED ITC on depreciable property that you acquired after December 15, 2024, and you used primarily (more than 50% of the time) for carrying out SR&ED in Canada.

You could apply shared-use treatment to new equipment that:

• is not a prescribed depreciable property (PDP)
• you used for both SR&ED and non-SR&ED purposes in two periods as described below (first term and second term).

We consider you to have acquired the equipment when it becomes available for use. Therefore, expenditures you made for equipment that became available for use after December 15, 2024, may qualify for SR&ED tax incentives.

The shared-use rules are for SR&ED ITC purposes only. The SR&ED ITC calculation for SUE is the same for both the traditional method and the proxy method. The capital cost of the equipment is not part of the pool of deductible SR&ED expenditures. You must depreciate this cost under the regular capital cost allowance (CCA) rates and rules in Schedule T2SCH8.

Note

The SR&ED ITC you earned on SUE and applied to reduce payable or refunded federal taxes reduces the undepreciated capital cost of the CCA class in the next tax year in Schedule T2SCH8.

The maximum amount of an SR&ED ITC that you can earn for the acquisition of SUE is 50% of the capital cost of the equipment over two periods. If the equipment meets the requirements of both the first and second-term SUE, on line 504, claim:

• 25% of the capital cost of the equipment that was used primarily in SR&ED in the first period (first-term SUE)
• the other 25% in the second period (second-term SUE)

The first term starts when you acquired the equipment and finishes at least 12 months after the date of acquisition at the end of the first tax year. The second term starts when you acquired the equipment and finishes at least 24 months after the date of acquisition at the end of the first tax year.

Note

You should be prepared to give us documents to support the calculation of the percentage of time you used the equipment for SR&ED. For an example of first-term and second-term SUE, refer to section 3.5 of the SR&ED Shared-Use-Equipment Policy.

Line 510 – Qualified expenditures transferred to you

To transfer the performer's qualified SR&ED expenditures to you (the payer), both of you must complete and sign Form T1146, Agreement to Transfer Qualified Expenditures Incurred in Respect of SR&ED Contracts Between Persons Not Dealing at Arm's Length.

For more information on how to calculate the amount to be transferred from the performer to the payer, refer to Form T1146. The payer must report the agreed upon transferred amounts from line 020 of Form T1146 to line 510 of Form T661. The performer must report the same amount on line 546 of their Form T661.

Expenditures for depreciable property or for the right to use property that you acquired before December 16, 2024, do not qualify for SR&ED tax incentives. Only include lease costs of equipment for capital expenditures that the performer made after December 15, 2024.

Line 514 – Provincial/territorial government assistance

On line 514, enter the amounts of provincial or territorial government assistance you got for SR&ED property you acquired after December 15, 2024. Include expenditures for SUE. For a brief overview of what provincial or territorial government assistance is, see the explanation for line 429. Exclude the amount from line 514 if your provincial or territorial government assistance includes an amount for a capital expenditure that you incurred for property that you acquired and was available for use before December 16, 2024.

Line 516 – Other government assistance (other than provincial and territorial R&D tax credits)

Enter the amounts of other government assistance you got for your capital SR&ED expenditures. For a brief overview of what other government assistance is, see the explanation for line 431.

Line 518 – Non-government assistance and contract payments

Enter the amounts of non-government assistance and contract payments you got for capital SR&ED expenditures. For a brief overview of what non-government assistance is, see the explanation for line 432.

Line 532 – Prescribed expenditures not allowed by regulations

There are certain expenditures that you can include in your pool of deductible SR&ED expenditures but you cannot include in your qualified SR&ED expenditures for ITC purposes. These expenditures are called prescribed expenditures and the most common are expenditures for the acquisition of used equipment.

Expenditures for depreciable property you acquired before December 16, 2024, do not qualify for SR&ED tax incentives. Only include amounts related to expenditures for property you acquired after December 15, 2024.

Line 535 – Other deductions

Enter any SR&ED expenditures you incurred while earning income that is not subject to income tax. A business can receive an SR&ED ITC only if the business's income for a particular expenditure is subject to income tax.

Expenditures of a capital nature for depreciable property that you acquired before December 16, 2024, do not qualify for SR&ED tax incentives. On line 535, include only the amounts related to depreciable property acquired after December 15, 2024.

Line 540 – Assistance allocated to you

When a related group carries out an ongoing SR&ED project, and the amount of assistance for one of the members is more than its SR&ED expenditures, you must allocate the excess amount of assistance to the other members of the group. A related group consists of people or partnerships that the claimant had not been dealing with at arm's length when they carried out the SR&ED. Assistance refers to government assistance, non-government assistance, and contract payments as defined under lines 513 to 518.

To allocate the excess assistance, use Form T1145, Agreement to Allocate Assistance for SR&ED Between Persons Not Dealing at Arm's Length. You should file Form T1145 with Form T661. The performer must report the agreed transferred amount on line 540 of Form T661.

Expenditures for depreciable property you acquired before December 16, 2024, do not qualify for SR&ED tax incentives. Only include amounts related to expenditures for property you acquired after December 15, 2024.

Line 543 – Adjustments to purchases of goods and services from non-arm's length suppliers

Enter the difference between the amount you included as SR&ED expenditures for the purchases of goods or services from non-arm's length suppliers and the deemed amount of the SR&ED expenditure on line 543.

Expenditures for depreciable property you acquired before December 16, 2024, do not qualify for SR&ED tax incentives. Only include amounts related to expenditures for property you acquired after December 15, 2024.

Line 546 – Qualified expenditures you transferred

Enter the amount of qualified expenditures you transferred to a non-arm's length party. See the explanation under lines 510.

Line 559 – Qualified SR&ED expenditures

Enter the total of lines 557 and 558 on line 559. This is your qualified SR&ED expenditures amount for this tax year.

Instructions for Part 6

We divided Part 6 into three parts: Part 6A Project costs, Part 6B Capital expenditures, and Part 6C Shared-use-equipment.

Part 6A: Project costs

Box 759 – Lease costs of equipment

For each project, list the leased equipment costs you incurred for SR&ED after December 15, 2024. The total of this column must equal the total of lines 350 and 355 in Part 3.

Part 6B – Capital expenditures

In this part, you will give us information for the 20 most expensive capital expenditures for all of the SR&ED projects you claimed in the tax year.

Box 780 – Name of the property that was used for SR&ED

Name the 20 most expensive expenditures for depreciable property that you used for SR&ED and that you acquired after December 15, 2024. Use the same names you entered on line 262 of Part 2 of Form T661 for each of these depreciable property items.

Box 782 – Capital expenditure amount

Enter the capital cost amount of the depreciable property. Generally, the capital cost of the property means the full cost for you to acquire the property. The cost could include the purchase price, installation costs, customs and excise duties, transportation, and other acquisition costs.

Box 786 – List of project numbers

List the numbers of all the projects in which you used the depreciable property. Separate the project numbers using commas. Use the same project numbers as line 750 in Part 6A.

Part 6C – Shared-use-equipment

In this part, you will give us information for the 20 most expensive SUE expenditures for SR&ED property that you acquired after December 15, 2024, for all SR&ED projects you claimed in the tax year.

Box 788 – Name of the SR&ED property that is shared-use-equipment

• consists of the 20 most expensive expenditures
• you acquired after December 15, 2024
• are shared-use-equipment you used for SR&ED

Box 790 – Purchase date

Write the date you purchased the property that is shared-use-equipment. Use the YYYY-MM-DD format to write the date.

Box 792 – 25% of the capital cost

Enter 25% of the capital cost of property that is shared-use-equipment and that you primarily used for SR&ED. Generally, the capital cost of the property means the full cost for you to acquire the property. This cost includes the purchase price, installation costs, customs and excise duties, transportation, and other acquisition costs.

Box 794 – First-term or second-term SUE

Enter “1” for first-term shared-use-equipment (SUE) or “2” for second-term shared-use-equipment (SUE).

Box 796 – Project numbers

List the numbers of all the projects in which you used the shared-use-equipment. Separate the project numbers with commas. Use the same project numbers as line 750 in part 6A.

Key updates to the SR&ED tax incentives

• Higher expenditure limits: The maximum annual expenditure limit for the enhanced 35% investment tax credit (ITC) has increased from $3 million to $6 million. ^{Footnote 1}
• Increasing the prior-year taxable capital phase-out thresholds: The expenditure limit for the enhanced 35% ITC will now phase out over a broader taxable capital range, from $15 million to $75 million. ^{Footnote 1}
• Expanded access to the enhanced tax credit: Eligible Canadian public corporations now have access to the enhanced ITC. ^{Footnote 1}
• Restored SR&ED capital expenditures: SR&ED capital expenditures businesses made after December 15, 2024, are eligible for them to claim.

Together, these updates give stronger incentives and more support, helping to strengthen Canada’s innovation and economic growth. They make sure that the SR&ED program stays an important contributor to R&D in Canada.

You can find up-to-date information on these legislative changes by visiting the following pages:

• Calculate allowable expenditures
• Calculate pool of deductible expenditures
• Calculate qualified expenditures
• Get an investment tax credit (ITC)

SR&ED policies and forms are being reviewed and will be updated soon to align with the new legislation.

Get the latest on SR&ED

To stay up to date on the latest SR&ED program news, you can subscribe to our electronic mailing list.

If you have questions or need more support, contact us- SR&ED today!

Has a third party indicated that you would be eligible for Scientific Research and Experimental Development (SR&ED) tax incentives if your dental practice uses their commercial product on patients as part of a study? Has this same party offered to give you strategies or advice to help you claim the tax incentives?

If so, we encourage you to be cautious before taking their advice and applying for SR&ED tax incentives.

What are tax schemes

Tax schemes are plans or arrangements that go against Canadian tax laws. Individuals and organizations that promote these arrangements are often referred to as “promoters”. Promoters try to encourage people to participate in the schemes by promising to reduce their taxes or offer the opportunity to receive benefits they are not entitled to receive.

Tips to consider before applying for SR&ED tax credits

Before engaging with a third party that promises you access to SR&ED tax incentives for conducting a study that uses their product, consider the following:

• If you are using a commercial product for its intended purpose, you are most likely not performing SR&ED work.
• Even if your study combines commercial products in a new way or changes their dosage concentration, you must still be trying to solve a scientific or technological uncertainty to be eligible for tax credits.
• A study that involves a large number of patients may indicate that the treatment being carried out is not experimental, and would not be considered as SR&ED.
• If a study’s end results cannot be measured or counted, the work may not be considered as SR&ED.
• When signing your tax credit application, remember it is your responsibility to ensure that you are filing a compliant claim. You are legally responsible even if you have been misled by third party promotions.

How can you protect yourself

Get a second opinion. If a third party tells you that you are eligible to claim SR&ED tax incentives or proposes to submit a claim for you, we recommend consulting resources directly from the CRA before moving forward.

The SR&ED program offers several free support services and tools that can help you explore your eligibility and submit a compliant claim on your own. Refer to the links below to connect with us and learn more about the supports available to assist you:

• Register for one of our webinars.
• Explore your eligibility using our Self-Assessment and Learning Tool.
• Request a Pre-claim consultation to discuss your ongoing or completed project with an SR&ED specialist, and get more certainty on eligibility before you file a claim.
• Access the SR&ED Client Portal, available within My Business Account, to start building your claim.
• Contact us through your local Tax Services Office, if you have questions.

If you decide to move forward with a third-party preparer, we encourage you to:

• Verify the qualifications and expertise of your preparer to ensure that they are knowledgeable on what counts as eligible SR&ED work and expenditures.
• Read the terms and conditions of any contract you are asked to sign in detail. Make sure you understand the terms of the fees listed in the contract and any termination clauses.
• Be cautious of contracts that make you commit to filing SR&ED claims for multiple tax years.
• Never sign a partially filled out or blank claim form and always keep a copy of all your tax filings for your own records.
• If you are approached with an offer to file your SR&ED claim or have any doubts about your eligibility, or simply want to explore if the SR&ED program is the right fit for you and your business, contact us directly.

If you are using a third party to prepare your SR&ED claim, you will also be required to provide the following information in Part 9 of Form T661:

• Confirmation that a claim preparer was engaged in preparing the claim
• Claim preparer name, business number and billing information
• Total fees paid, payable or expected to be paid

Failure to provide complete and accurate information may result in a $1,000 penalty.

Get the latest on SR&ED

To stay up to date on the latest SR&ED program news and future outreach opportunities, you can subscribe to our electronic mailing list.

If you have questions or need more support, contact us today!

Visit canada.ca/taxes-sred to learn more about the SR&ED program.

Each issue will bring fresh insights, helpful resources, and the latest on all things SR&ED, from policy updates to upcoming webinars.

We are eager to share what we’ve got planned in celebration of Small Business Week, taking place next week.

We’re also excited to put a spotlight on our revamped Support services and tools web page. The SR&ED program is continuously working to improve the client experience, and this newly re-designed page makes it easier to find the help you need, based on where you are in the claim process.

As part of this edition, we want to highlight some of the ways we’re connecting with innovators and entrepreneurs across the country to raise awareness about the program.

Finally, we’re pleased to announce upcoming SR&ED webinar dates so you can plan ahead. We’re also providing a quick recap of recent updates to our policies and guides.

Whether you’re new to the program or a seasoned SR&ED claimant, there’s something here for everyone!

Latest SR&ED news

Small Business Week: October 19 to 25, 2025

This October, we’re proud to recognize the contributions of Canadian small businesses, including start-ups and young entrepreneurs, who are pushing boundaries and driving innovation through research and development (R&D).

On average, 64% of SR&ED claims come from small businesses each year, and we know that every dollar counts. That’s why we want to make sure you can keep more money in your business and maximize your SR&ED tax incentives by filing your own claim. Before you seek outside help, we encourage you to consult our Support services and tools web page, or give us a call if you need assistance.

During Small Business Week, we will host two free SR&ED general information webinars. Join us for the English session on October 20 or attend the French session on October 23. We will walk you through:

• Eligibility requirements
• What expenses can be claimed
• How to file a claim
• And more

We hope to see you there!

Empowering businesses to file their claims independently

The SR&ED program offers a suite of tools and services to help you file your claim directly, so you can keep and re-invest more of the tax credits you receive.

Our newly re-designed Support services and tools web page organizes resources into clear categories, helping you access the right support, depending on where you are in the claim process. Whether you want to learn more about the program, explore your eligibility or start preparing your claim, this page will guide you every step of the way:

Step 1: Learn about the program

• Register for an SR&ED webinar to gain a deeper understanding of the program
• Request a one-on-one presentation that is tailored to the needs of your business
• Explore our multimedia gallery where you can access infographics, videos, and other products that can help you get familiar with program requirements

Step 2: Find out if your work may be eligible

• Consult our Guidelines on the eligibility of work for scientific research and experimental development (SR&ED) tax incentives to learn about what work is eligible
• Use our Self-Assessment and Learning Tool to find out if your work may be eligible, estimate the amount of investment tax credit you could receive, and understand the documentation you need to support your claim
• Request a pre-claim consultation to discuss your ongoing or completed projects with an SR&ED specialist so you can get more certainty on eligibility before you file a claim

Step 3: Prepare your claim

• Follow our step-by-step guide to identify and calculate qualifying expenses, and to help prepare your claim
• Learn how to access the SR&ED Client Portal within My Business Account, a secure, self-service space designed to help you prepare your claim
• Contact an SR&ED specialist if you have questions about your claim

Helping you access the SR&ED Client Portal

We recently published the SR&ED Client Portal web page that explains how to access the SR&ED Client Portal in My Business Account. It also offers an overview of the resources available within the portal, including:

• A pre-claim workbook that helps you compile the information you need to complete Form T661
• An exclusive version of the Self-Assessment and Learning Tool, with a save and retrieve feature
• An easy option to request assistance from an SR&ED specialist
• Up-front information on processing times
• And more

Engaging with innovators across Canada

SR&ED is not just a program, it plays a critical role in Canada’s innovation ecosystem, improving competitiveness and positioning your business to succeed in a fast-changing global market.

Throughout the year, we actively engage with Canadian innovators and entrepreneurs to improve the client experience, increase knowledge of SR&ED tax incentives and ensure businesses have the information they need to get the most out of the program.

Here are some highlights from recent engagements:

2025 Web Summit Vancouver

We attended Web Summit Vancouver, where we made over 480 new connections, presented the SR&ED program’s masterclass at the Black Innovation Zone, and offered a masterclass and free office hours in partnership with the Trade Commissioner Service.

University outreach

We partnered with 15 university incubators and accelerators to help early-stage entrepreneurs understand the claim process and maximize the value of SR&ED tax incentives as part of their financing strategy.

Expanding partnerships

We joined leading events including the Inventures Conference, Global Energy Show, Atlantic Venture Forum, H2O Conference and True Blue Expo to strengthen our ties with organizations that support Canada’s innovation ecosystem.

Engagement with multinational companies

In partnership with Invest in Canada, we delivered 10 information sessions to multinational companies considering Canada for their next R&D investment.

Underserved communities outreach

We worked to strengthen relationships with organizations supporting women entrepreneurs, Indigenous Peoples, and Black communities.

Connect with us

The SR&ED Outreach Program offers several engagement opportunities, including one-on-one meetings, financial deep dives, and guided workshops.

Contact us today at OESCPB-SVEDGPO@cra-arc.gc.ca to schedule your tailored session!

Upcoming SR&ED webinars

Each month, we offer free webinars on Microsoft Teams to help businesses gain a deeper understanding of our program. Register for one of our upcoming general information sessions:

*If you received this email, you are already subscribed to our electronic mailing list and will be notified when registration opens for our December dates. Space is limited, so make sure to sign up early to take advantage of these great learning opportunities!

In case you missed it

Strengthening program transparency

To strengthen transparency and trust with our SR&ED claimants and stakeholders, we are committed to sharing annual program statistics.

Consult our SR&ED program statistics web page for the latest 2024 to 2025 figures.

Updated guide for claimants

In July, we updated The SR&ED Review Process: A Guide for Claimants to better support businesses with a claim under review. This guide helps claimants understand what happens when the Canada Revenue Agency (CRA) reviews both the work and the expenditures in SR&ED claims. It outlines what you can expect before, during, and after the review, while also providing recommendations on how to prepare for each step of the process.

Policy updates

We recently updated the following three policies:

• SR&ED Salary or Wages Policy
• SR&ED Filing Requirements Policy
• Gross Negligence Penalty on Overstated SR&ED Claims Policy (formerly Application Policy SR&ED 96-05)

Spread the word

Did you enjoy this update? Did you learn something new? If so, we’d love for you to spread the word. Share this email with a colleague and encourage them to sign up for the SR&ED program’s electronic mailing list.

Published on: October 29, 2025

These changes may impact claimants that have previously deducted government assistance on Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim, if that government assistance meets the definition of an excluded loan. Claimants affected by this change can submit amended tax returns with their revised SR&ED forms for the years affected as long as the tax year is not statute-barred, even if their SR&ED reporting deadline has passed. If you are past your reporting deadline, new SR&ED expenditures will not be accepted in your amended Form T661. If the tax year affected is statute-barred, investment tax credit (ITC) will still be recoverable when you include the repayment in your tax return for the year the repayment is made.

Schedule T2SCH31, Investment Tax Credit – Corporations, or Form T2038-IND, Investment Tax Credit (Individuals), must be included with the amended T2 return to claim the additional ITC earned. If, in the same tax year, additional amounts of government assistance related to the excluded loan were included as income on Schedule T2SCH1, Net Income (Loss) for Income Tax Purposes, then these amounts can also be removed through an amended Schedule T2SCH1.

For more information about this legislative amendment, go to Explanatory Notes Relating to the Income Tax Act and Other Legislation.

For any questions, contact us.

However, this extension does not apply to the British Columbia Scientific Research and Experimental Development Tax Credit and Nova Scotia Research and Development Tax Credit. For example, British Columbia and Nova Scotia corporations with a December 31, 2019 tax year-end should file their Forms T661, T2SCH31, T666 British Columbia (BC) Scientific Research and Experimental Development Tax Credit or T2SCH340 Nova Scotia Research and Development Tax Credit, and other relevant forms at the latest, June 30, 2021.

For more information go to British Columbia Scientific Research and Experimental Development Tax Credit and Nova Scotia Research and Development Tax Credit for tax year-ends from November 30, 2019, to February 29, 2020.

Since this order has not yet been issued, claimants with a SR&ED reporting deadline on or after March 13, 2020, and who were unable to file an SR&ED claim because of the COVID-19 pandemic, are encouraged to file their claim on the expectation that such an order will be released. Claimants are encouraged to submit their SR&ED claims as early as possible, preferably with their income tax return. For more information on federal draft legislation amending the Income Tax Act that impacts on the SR&ED Program, go to Federal SR&ED legislative proposals status.