Closed
Source verified July 19, 2026
SR&ED Lease Expenditures Policy
Rules for claiming eligible lease costs
Funding available
Varies by project
Deadline
Closed
Location
Canada
Overview
The SR&ED Lease Expenditures Policy explains how claimants can treat lease expenditures for scientific research and experimental development carried on in Canada, with rules applying to expenditures incurred after December 15, 2024. It covers equipment, premises and facilities leased under the traditional or proxy method, including operating-time thresholds and the special exclusion for buildings.
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At a glance
Funding available
Financing goals
- Conduct research and development activities
Eligible Funding
- Varies by project
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- All legal structures
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Official resources
Program guide
Eligibility
Who is eligible?
- Taxpayers who claim SR&ED expenditures
Eligible expenses
- Lease expenditures for premises, facilities or equipment that are all or substantially all attributable to SR&ED carried on in Canada
- Under the traditional method, lease expenditures for equipment used 90% or more of the time for SR&ED, claimable at 100%
- Under the traditional method, lease expenditures for equipment used less than 90% of the time for SR&ED, claimable in proportion to SR&ED use
- Under the proxy method, lease expenditures for equipment other than general purpose office equipment or furniture, claimable at 100% when used 90% or more of operating time for SR&ED in Canada
- Under the proxy method, lease expenditures for equipment other than general purpose office equipment or furniture, claimable at 50% when used more than 50% but less than 90% of operating time for SR&ED in Canada
Ineligible Costs and Activities
- Lease expenditures incurred before December 16, 2024
- Lease expenditures for buildings, other than lease costs incurred after December 15, 2024 for a special-purpose building prescribed by the Regulations
- Lease expenditures for premises, facilities or equipment used 50% or less of operating time for SR&ED in Canada under the proxy method
Frequently Asked Questions about the SR&ED Lease Expenditures Policy Program
What is the SR&ED Lease Expenditures Policy?
The SR&ED Lease Expenditures Policy explains how claimants can treat lease expenditures for scientific research and experimental development carried on in Canada, with rules applying to expenditures incurred after December 15, 2024. It covers equipment, premises and facilities leased under the traditional or proxy method, including operating-time thresholds and the special exclusion for buildings.
Who is eligible for the SR&ED Lease Expenditures Policy program?
To be eligible for the SR&ED Lease Expenditures Policy program, you must:
The claimant must be a taxpayer who claims SR&ED expenditures.
The lease expenditures must be incurred after December 15, 2024.
The expenditures must be for SR&ED carried on in Canada.
Who can I contact for more information about the SR&ED Lease Expenditures Policy?
You can contact Canada Revenue Agency (CRA).
Where is the SR&ED Lease Expenditures Policy available?
The SR&ED Lease Expenditures Policy program is available across Canada.
Is the SR&ED Lease Expenditures Policy a grant, loan, or tax credit?
SR&ED Lease Expenditures Policy is a Tax Credits
Who are the financial supporters of the SR&ED Lease Expenditures Policy?
SR&ED Lease Expenditures Policy is funded by Canada Revenue Agency (CRA)