British Columbia scientific research and experimental development tax credit

A qualifying corporation with a permanent establishment in British Columbia can claim this credit on expenditures incurred before September 1, 2027, in the tax year, for scientific research and experimental development (SR&ED) carried on in British Columbia.

An active member of a partnership can also claim its share of the partnership's non-refundable tax credit for SR&ED carried on in British Columbia. Only partners that are qualifying corporations can claim the credit.

Refundable credit

A qualifying corporation that is a Canadian-controlled private corporation (CCPC) may claim the refundable tax credit.

The amount of the credit is equal to 10% of whichever of the following amounts is less:

Non-refundable credit

Qualifying CCPCs with SR&ED qualified expenditures that are more than their expenditure limit and qualifying corporations that are not CCPCs may claim a non-refundable tax credit.

The annual non-refundable tax credit is 10% of the SR&ED qualified BC expenditure for that year less the total of:

The credit may be deducted against the income tax payable for that year. You must claim the maximum tax credit available in the year it is earned. You can carry back an unused credit to the 3 previous tax years from the year the expenditures were incurred. You can also carry forward the unclaimed credit to the 10 tax years that follow the tax year in which the expenditures were incurred.


A corporation that disposed of a property used in SR&ED, or converted it to commercial use within 10 years of acquiring the property, may be required to report a recapture of any British Columbia SR&ED tax credit previously calculated on that property. Any recapture will create or increase British Columbia tax otherwise payable.

Claiming the credit

File Form T666, British Columbia (BC) Scientific Research and Experimental Development Tax Credit, with your return.

You must file this form no later than 18 months after the end of the tax year in which the qualified expenditures are incurred (even if you do not claim the credit for that year).

For more information, see Form T666 and Part 6, sections 98 and 99 of the British Columbia Income Tax Act.

On line 674 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the refundable credit you are claiming.

On line 659 of Schedule 5, enter the amount of the non-refundable credit you are claiming.

Reporting a recapture

Complete Form T666 to calculate the recapture and attach it to your return. For more information, see Form T666 and Part 6, sections 102.1 to 102.6 of the British Columbia Income Tax Act. 

On line 241 of Schedule 5 enter the amount of recapture calculated.

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