BC Scientific Research & Experimental Development Tax Credit
BC, Canada
Tax credit for R&D in British Columbia
grant_single|update January 24, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Professional, scientific and technical services
grant_single|grantors
- Ministry of Finance (BC)
- Government of British Columbia
grant_single|status
grant_card_status|open
grant_single_labels|preview
Tax credit of 10% for scientific research and experimental development expenditures in British Columbia. Refundable for expenditures under $3 million.
grant_single_labels|terms_and_conditions
This grant provides tax credit financing modalities designed to support corporations engaged in qualifying scientific research and experimental development activities in British Columbia. These modalities ensure that both refundable and non-refundable credits are efficiently utilized for financial planning.
- A refundable tax credit of 10% for Canadian-controlled private corporations (CCPCs) based on the lesser of the corporation's SR&ED qualified B.C. expenditures or an expenditure limit, generally set at $3 million.
- Non-refundable tax credit for expenditures exceeding the expenditure limit, applicable to other qualifying corporations and CCPCs not eligible for the refundable credit.
- The non-refundable credit is calculated as 10% of the qualified B.C. expenditures minus any refundable credit and amounts renounced for the year.
- Possibility to carry forward the non-refundable credit for up to 10 years or carry it back for up to three years.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 180,000
Creating AI algorithms for predictive maintenance in manufacturing plants
$ 27,000
Developing an advanced waste-water treatment system for urban areas
$ 30,000
Researching cutting-edge biotechnology for medical diagnostics
$ 200,000
Development of a novel biodegradable packaging solution for the food industry
$ 22,000
Creating an innovative mobile app for improving mental health
$ 250,000
Innovating sustainable energy solutions for remote communities
grant_single_labels|admissibility
To be eligible for this grant, corporations must meet specific requirements related to their structure and activities in B.C.
- The corporation must carry on scientific research and experimental development (SR&ED) activities in British Columbia.
- The corporation must be a Canadian-controlled private corporation (CCPC) to be eligible for the refundable tax credit.
- Other qualifying corporations can claim a non-refundable tax credit for expenditures exceeding their expenditure limit.
- The corporation's SR&ED activities must incur qualified expenditures within the specified tax year limits.
grant_eligibility_criteria|who_can_apply
Qualifying corporations that carry on scientific research and experimental development in British Columbia before September 1, 2027 are eligible for this grant. Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit of 10% of their SR&ED qualified B.C. expenditures.
- Corporations conducting scientific research and experimental development in B.C.
- Canadian-controlled private corporations (CCPCs)
grant_eligibility_criteria|who_cannot_apply
There are types of companies that are not eligible for the Scientific Research and Experimental Development (SR&ED) tax credit in British Columbia:
- Companies that do not carry out qualified SR&ED activities in B.C. before September 1, 2027
- Companies that are not Canadian-controlled private corporations (CCPCs)
grant_eligibility_criteria|eligible_expenses
The BC Scientific Research and Experimental Development (SR&ED) tax credit encourages corporate activities focused on advancing scientific research and experimental development. Eligible projects align with conducting qualifying SR&ED within British Columbia.
- Developing new technologies or substantially improving existing ones through systematic investigation.
- Applying scientific principles to design and evaluate prototypes, models, or simulations.
- Conducting experimental or computational analysis for the enhancement of energy efficiency processes.
- Innovating in fields such as biotechnology, software development, or environmental sciences to resolve scientific or technological uncertainty.
- Undertaking collaborative research initiatives with educational institutions or other corporations to foster innovation.
grant_eligibility_criteria|zone
The BC Scientific Research & Experimental Development Tax Credit is applicable to companies conducting qualifying research and development activities within British Columbia. Eligible geographical areas are confined to this province.
- Corporations conducting Scientific Research and Experimental Development activities in British Columbia.
grant_single_labels|criteria
For the British Columbia Scientific Research and Experimental Development (SR&ED) tax credit, the evaluation and selection criteria include the corporation's eligible SR&ED qualified B.C. expenditures and adherence to the eligibility requirements.
- Corporation's SR&ED qualified B.C. expenditures for the tax year
- Compliance with the expenditure limit
- Corporation type (Canadian-controlled private corporation or other qualifying corporations)
- Adherence to eligibility requirements
- Timely submission of the claim within the specified deadline
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Verify Eligibility
- Ensure that your corporation qualifies as a Canadian-controlled private corporation (CCPC) engaged in SR&ED in B.C. before the applicable date.
- Review the eligibility requirements in the bulletin, British Columbia Scientific Research and Experimental Development Tax Credit (CIT 007).
- Step 2: Gather Documentation
- Collect all necessary documents related to SR&ED expenditures, including financial statements and technical reports, for the tax year.
- Step 3: Complete Forms
- Fill out the British Columbia Scientific Research and Experimental Development Tax Credit (T666) form.
- Prepare your T2 Corporation Income Tax Return, including Schedule 5, Tax Calculation Supplementary – Corporations.
- Step 4: Claim Credit in Tax Return
- Enter the refundable credit amount on line 674 of Schedule 5.
- Enter the non-refundable credit amount on line 659 of Schedule 5.
- Step 5: Submit Tax Return
- Submit your completed T2 Corporation Income Tax Return and the T666 form to the Canada Revenue Agency (CRA).
- Step 6: Meet Deadlines
- Ensure that the claim is made no later than 18 months after the end of the tax year in which the qualified expenditures were incurred.
grant_single_labels|otherInfo
Here are additional relevant details for the B.C. Scientific Research and Experimental Development tax credit:
- The credit must be claimed no later than 18 months after the end of the tax year in which the expenditures were made.
- The non-refundable credit can be carried forward for up to 10 years or back for three years.
- For full details, refer to the British Columbia Scientific Research and Experimental Development Tax Credit (CIT 007) bulletin.
- Claim requires submission of the British Columbia Scientific Research and Experimental Development Tax Credit (T666) form with your T2 Corporation Income Tax Return.
- Contact information is available for inquiries about the program and next steps.
grant_single_labels|contact
itbtaxquestions@gov.bc.ca
1-877-387-3332
