Closed
Scientific Research and Experimental Development (SR&ED)
Tax incentives for R&D in Canada
Last Update: June 15, 2026
Funding available
Up to 35% of project cost
Timeline
- Receipt of requests is now closed
Location
Canada
Overview
The Scientific Research and Experimental Development (SR&ED) tax incentives help businesses carrying out eligible research and development in Canada. Claimants may benefit through a deduction against income or an investment tax credit for basic research, applied research, experimental development, and directly related support work.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop a new product or service
- Conduct research and development activities
Eligible Funding
- Up to 35% of project cost
Timeline
- Receipt of requests is now closed
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Sole proprietorship
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Startups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Basic research aimed at advancing scientific knowledge without a practical application in view.
- Applied research conducted to advance scientific knowledge with a practical application in view.
- Experimental development to generate or discover technological knowledge or know-how in order to develop or improve materials, devices, products, or processes, including incremental improvements.
- Support work directly supporting eligible basic research, applied research, or experimental development, in the fields of engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research.
Documents Needed
- Form T661, SR&ED Expenditures Claim
- Form T2SCH31 or Form T2038(IND) for the investment tax credit
- Other required forms and attachments, as needed
Eligibility
Who is eligible?
- Corporations conducting scientific research and experimental development in Canada
- Individuals involved in eligible SR&ED work
- Trusts engaging in eligible SR&ED activities
- Partnerships that carry out SR&ED work
Who is not eligible
- Companies or entities whose main activities are market research or sales promotion.
- Companies engaged primarily in quality control or routine testing of materials, devices, products, or processes.
- Organizations whose core business is research in the social sciences or the humanities.
- Businesses involved in prospecting, exploring, drilling for, or producing minerals, petroleum, or natural gas.
- Companies focused on the commercial production of a new or improved material, device, or product, or the commercial use of a new or improved process.
- Entities whose primary work relates to style changes or routine data collection.
Eligible expenses
- Salaries or wages of personnel engaged in eligible SR&ED activities.
- Materials consumed or transformed during eligible SR&ED work.
- Contract expenditures for work performed on eligible SR&ED activities.
- Overhead and other expenditures related to eligible SR&ED projects, as calculated by the proxy or traditional method.
- Third-party payments directly supporting eligible SR&ED work.
Ineligible Costs and Activities
- Market research or sales promotion
- Quality control or routine testing of materials, devices, products, or processes
- Research in the social sciences or the humanities
- Commercial production of a new or improved product/material, or commercial use of a new or improved process
- Training or on-the-job learning to apply existing knowledge (including hiring experts for what they already know, or purchasing proprietary knowledge)
Eligible geographic areas
- Canada (eligible SR&ED work must be conducted in Canada).
Processing and Agreement
- The CRA reviews claims and may ask for additional information or supporting records.
- Some claims may be selected for review of the work and expenditures.
- The review process may include meetings with technical and financial personnel.
- The CRA issues the decision on the Notice of assessment or reassessment.
Additional information
- The SR&ED Client Portal is available through My Business Account.
- Webinars, pre-claim consultations, and outreach presentations are available as support services.
- The program publishes news, updates, statistics, and success stories.
Contacts
Frequently Asked Questions about the Scientific Research and Experimental Development (SR&ED) Program
What is the Scientific Research and Experimental Development (SR&ED)?
The Scientific Research and Experimental Development (SR&ED) tax incentives help businesses carrying out eligible research and development in Canada. Claimants may benefit through a deduction against income or an investment tax credit for basic research, applied research, experimental development, and directly related support work.
How much funding can be received?
Scientific Research and Experimental Development (SR&ED) Funds up to 35% of admissible expenses.
Who is eligible for the Scientific Research and Experimental Development (SR&ED) program?
To be eligible for the Scientific Research and Experimental Development (SR&ED) program, you must:
The applicant must conduct eligible scientific research and experimental development work.
The applicant can be a corporation, individual, trust, or partnership operating in Canada.
The work must be linked to specific expenditures claimable for SR&ED tax incentives.
What expenses are eligible under Scientific Research and Experimental Development (SR&ED)?
Basic research aimed at advancing scientific knowledge without a practical application in view.
Applied research conducted to advance scientific knowledge with a practical application in view.
Experimental development to generate or discover technological knowledge or know-how in order to develop or improve materials, devices, products, or processes, including incremental improvements.
Support work directly supporting eligible basic research, applied research, or experimental development, in the fields of engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research.
Who can I contact for more information about the Scientific Research and Experimental Development (SR&ED)?
You can contact Canada Revenue Agency (CRA) by email at sredclprtlg@cra-arc.gc.ca or by phone at 1-888-784-8709.
Where is the Scientific Research and Experimental Development (SR&ED) available?
The Scientific Research and Experimental Development (SR&ED) program is available across Canada.
Is the Scientific Research and Experimental Development (SR&ED) a grant, loan, or tax credit?
Scientific Research and Experimental Development (SR&ED) is a Tax Credits