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BC Scientific Research & Experimental Development Tax Credit
Last Update: March 4, 2026
British Columbia, Canada
Tax credit for R&D in British Columbia
Tax Credits
Overview
Tax credit of 10% for scientific research and experimental development expenditures in British Columbia. Refundable for expenditures under $3 million.
At a glance
Funding available
Financing goals
- Research and experimental development
Eligible Funding
- Maximum amount : 3,000,000 $
- Up to 10% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Professional, scientific and technical services
Location
- British Columbia
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Activities funded
- Projects involving scientific research conducted in British Columbia.
- Experimental development activities aimed at technological advancement or innovation in B.C.
Examples of admissible projects:
$ 180,000
Creating AI algorithms for predictive maintenance in manufacturing plants
$ 30,000
Researching cutting-edge biotechnology for medical diagnostics
$ 27,000
Developing an advanced waste-water treatment system for urban areas
$ 22,000
Creating an innovative mobile app for improving mental health
$ 200,000
Development of a novel biodegradable packaging solution for the food industry
$ 250,000
Innovating sustainable energy solutions for remote communities
Eligibility
- The applicant must be a corporation with a permanent establishment in British Columbia.
- The corporation must carry out scientific research and experimental development (SR&ED) activities within British Columbia.
- The credit can be claimed by Canadian-controlled private corporations (CCPCs) or other qualifying corporations.
- Eligible expenditures must be incurred before September 1, 2027.
Who is eligible?
- Qualifying corporations with a permanent establishment in British Columbia
- Canadian-controlled private corporations (CCPCs) conducting scientific research and experimental development (SR&ED) in British Columbia
- Other qualifying corporations (not CCPCs) carrying out SR&ED in British Columbia
- Active members of partnerships that are qualifying corporations with SR&ED activities in British Columbia
Eligible expenses
- Qualified expenditures related to scientific research and experimental development (SR&ED) activities carried out in British Columbia.
Eligible geographic areas
- Corporations with a permanent establishment in British Columbia.
How to apply
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).
2
Gather Documentation
Collect all necessary documents related to SR&ED expenditures, including financial statements and technical reports, for the tax year.
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.
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.
5
Submit Tax Return
Submit your completed T2 Corporation Income Tax Return and the T666 form to the Canada Revenue Agency (CRA).
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.
Additional information
- If property used in SR&ED is sold or converted to commercial use within 10 years, a recapture of credits previously claimed may be required.
- Active partners in partnerships may claim a share of the partnership’s non-refundable credit if they are qualifying corporations.
- Questions regarding the credit can be directed to designated government contacts via phone or email.
- The British Columbia Income Tax Act, Part 6, outlines legislative requirements for this tax credit program.
Contacts
itbtaxquestions@gov.bc.ca
1-877-387-3332
