Scientific Research and Experimental Development (SR&ED) — Tax Incentive Program
grant_single|update April 4, 2025
Canada
Scientific research and experimental development tax credit
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Canada Revenue Agency (CRA)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
If your business is engaged in scientific research and experimental development (SR&ED), you can claim a deduction against income or earn an investment tax credit (ITC)
grant_single_labels|terms_and_conditions
The Scientific Research and Experimental Development (SR&ED) Tax Incentive Program provides distinct financing options, focusing on tax incentives that encourage research and development activities within Canada. This approach supports businesses in aligning their eligible research efforts with specific financial benefits.
- Claim a deduction against income through eligible expenditures incurred in SR&ED activities.
- Earn an investment tax credit (ITC), which can be applied towards current or future tax liabilities.
grant_single_labels|projects
The SR&ED Tax Incentive Program supports businesses engaging in scientific research and experimental development in Canada. Projects eligible for this program typically involve innovative research activities aimed at technological advancements or overcoming scientific uncertainties.
- Conducting experimental development to achieve technological advancement.
- Performing applied research to acquire knowledge for a specific practical aim.
- Engaging in basic research to advance scientific understanding without a direct practical application.
- Undertaking support work such as engineering, design, operations research, mathematical analysis, and computer programming related to experimental development.
- Developing prototypes and conducting trials to resolve technological uncertainties.
grant_single|admissibleProjectsExample
$ 300,000
Innovating eco-friendly materials for packaging through experimental development and testing.
$ 250,000
Developing a new AI algorithm to optimize energy consumption in smart buildings.
$ 280,000
Conducting data analysis and management research to develop smarter logistical systems.
$ 240,000
Exploring new composite materials for sustainable packaging
$ 240,000
Enhancing precision agriculture through robotics integrations
$ 240,000
Developing AI-based diagnostic tool for neurological disorders
grant_single_labels|admissibility
- The applicant must be a corporation, individual, trust, or partnership conducting research and development in Canada.
- The project must involve scientific research or experimental development.
- The eligible work must be linked to expenditures that can be claimed for the tax incentives.
grant_eligibility_criteria|who_can_apply
Corporations, individuals, trusts, and partnerships in Canada that conduct scientific research and experimental development (SR&ED) may be eligible for SR&ED tax incentives. These entities can claim deductions and earn investment tax credits for their eligible SR&ED work.
- Corporations
- Individuals
- Trusts
- Partnerships
grant_eligibility_criteria|who_cannot_apply
Some types of companies may not be eligible for the Scientific Research and Experimental Development (SR&ED) tax incentives. The eligibility criteria typically exclude companies that do not conduct eligible research and development work in Canada.
- Companies that do not conduct eligible research and development work in Canada
grant_eligibility_criteria|eligible_expenses
Eligible expenses for the SR&ED tax incentives include various types of work performed to achieve scientific and technological advancements. These expenses must be meticulously documented to support your claim.
- Experimental development costs
- Basic research expenditures
- Applied research costs
- Support work expenses (engineering, design, etc.)
grant_eligibility_criteria|zone
This program is designed to support R&D activities across Canada without specifying particular eligible regions or provinces. While the program is broadly accessible, participants must ensure their activities comply with national guidelines.
grant_single_labels|criteria
The evaluation and selection criteria for the Scientific Research and Experimental Development (SR&ED) tax incentives emphasize scientific or technological advancement and a systematic approach to the work. Ensure that your work meets the "Why" and "How" requirements to be eligible.
- Work performed for the advancement of science or technological progress.
- Presence of scientific or technological uncertainty that justifies the work.
- The work must be conducted through a systematic scientific or technological investigation or research, carried out through experimentation or analysis.
- Categories of eligible work: experimental development, pure research, applied research.
- Supporting work must be proportional to the needs and directly support the SR&ED.
- Exclusion of work related to market studies, routine quality control, research in social or human sciences, prospecting, commercial production, style modifications, and routine data collection.
grant_single_labels|apply
1
2
3
4
5
6
7
grant_single_labels|otherInfo
The guidelines outline the specifics on Scientific Research & Experimental Development (SR&ED) tax incentives, offering clarity on eligibility requirements and steps for claiming deductions. They stress the importance of proper documentation to support SR&ED claims and provide a comprehensive breakdown of eligible and ineligible work.
- Basic research aims to advance scientific knowledge without specific practical applications.
- Applied research is directed towards scientific knowledge with practical applications in view.
- Experimental development focuses on technological advancements for new or improved products, devices, or processes.
- Support work includes engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, and psychological research.
- Excluded work includes market research, quality control, routine testing, social sciences research, prospecting for natural resources, commercial production or use of new/improved products and processes, style changes, and routine data collection.
- Proper documentation must show what work was done, who did it, when it was done, and how expenditures were calculated.
- SR&ED claims should be filed together with the income tax return for the year and must be submitted before the reporting deadline.
- Other government funding for R&D must be reported in the SR&ED claim and will reduce the amount of ITC you can earn.
grant_single_labels|contact
sredclprtlg@cra-arc.gc.ca
Apply to this program
More grants like this
Other Supportgrant_card_status|open
Sell your innovation to government
Expert Advicegrant_card_status|open
Personalized advisory services for innovators
Grant and Fundinggrant_card_status|open
Money for transit solutions in rural and remote communities
Partnering and CollaborationGrant and Fundinggrant_card_status|open
Funding for large-scale genomics projects
Wage Subsidies And Internsgrant_card_status|open
Connect with international IT professionals immigrating to Canada
Researchers And FacilitiesPartnering and Collaborationgrant_card_status|open
Accelerate your path to commercialization
Partnering and Collaborationgrant_card_status|open
Collaboration opportunities across the food ecosystem
Grant and Fundinggrant_card_status|open
Financing for natural product innovations
Expert Advicegrant_card_status|open
Strategic investment, advice and services for sustainable technologies
Expert Advicegrant_card_status|open
Support for technology startups