SR&ED Program


  • The  Government of Canada provides tax incentives to encourage Canadian  companies of all sizes and in all industry sectors to conduct Scientific  Research and Experimental Development (SR&ED). These tax incentives  come in three forms: an income tax deduction, an investment tax credit  (ITC), and, more commonly, a refund.
  • The  SR&ED Program provides more than $3 billion in tax incentives to  over 20,000 claimants annually, making it the single largest federal  program that supports business R&D in Canada, in addition to further  provincial incentives. The program is administered by the Canada  Revenue Agency (CRA).
  • Most  claims made by small businesses are for Experimental Development.  Experimental Development is work undertaken to create or incrementally  improve products, processes, materials and devices.
  • Projects  are evaluated in terms of the program’s three criteria: evidence of a  systematic investigation within the context of the business,  technological uncertainty, and technological advancement.
  • Scientific Research and Experimental Development Tax Incentive Program.

Your projects may be eligible if you:

  • Attempt  to overcome limitations in the existing technology or extend  capabilities (don’t know and cannot look it up, not in a datasheet);
  • Conduct trials, experiments, or analyses to solve these problems; and
  • Require knowledge, experience or technologies not readily available to your company to solve these problems.

Even if your project is unsuccessful, you may still qualify if you spent time and money on it. Finding out what does not work is useful knowledge!