Open
Source change captured:
Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program
Tax incentives for business R&D in Canada
Funding available
Up to 35% of project cost
Deadline
Open continuously
Location
Canada
Overview
Scientific Research and Experimental Development (SR&ED) tax incentives help corporations, individuals, trusts, and partnerships conducting eligible research and development in Canada through a deduction against income and an investment tax credit, generally at 15% and up to 35% in some cases. Eligible work includes basic research, applied research, and experimental development.
/100
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
- Conduct research or evaluation activities
Eligible Funding
- Up to 35% of project cost
Funds Providers
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
- All groups
Next Steps
1
Determine your project
Availability timeline
2026
Periods: 1
Activities funded
- Basic research
- Applied research
- Experimental development
- Support work that matches the needs of and directly supports eligible SR&ED work
Documents Needed
- Form T661, SR&ED Expenditures Claim
- Form T2SCH31 or Form T2038(IND) to claim an investment tax credit
- Other forms, as needed: T1145, T1146, T1174, T1263, and any attachments
Sources and recorded changes
- Source change captured
- Change recorded
- Record updated
A captured source change or record update does not confirm eligibility. Check the funder’s current rules before applying.
SR&ED pre-claim approval steps updated
The SR&ED guidance now adds post-application pre-claim approval steps, including CRA review, RTA meetings, and next steps if approval is denied.
The SR&ED pre-claim approval guidance now includes what happens after you apply: the CRA will provide a decision within 8 weeks of a complete application and will assign a Research and Technology Advisor to the file. It also explains that meetings are mandatory for businesses other than existing claimants in good standing, and outlines what to prepare, what happens if approval is denied, and how to proceed after material project changes. The main SR&ED tax incentives page also now states that a claim must be submitted whether or not pre-claim approval is sought.
Program guide
Application form
Eligibility
Who is eligible?
- Corporations that conduct eligible work
- Individuals that conduct eligible work
- Trusts that conduct eligible work
- Partnerships that conduct eligible work
Eligible expenses
- Salary or wages for SR&ED work
- Materials consumed or transformed
- Contracts for SR&ED and third-party payments
- Lease costs of equipment incurred after December 15, 2024
- Overhead and other expenditures under the traditional method, and capital expenditures resulting in the acquisition of depreciable property after December 15, 2024
Ineligible Costs and Activities
- Interest and other financing costs
- A due or fee for membership in a scientific or technical society or organization
- Legal or accounting fees
- Expenditures for the acquisitions of used equipment
- Lease expenditures for buildings
Eligible geographic areas
- Canada
How to apply
- Before beginning SR&ED work, you may apply for optional pre-claim approval; you must still submit an SR&ED claim whether or not you apply for pre-claim approval.
- Review the claim to ensure it is complete, accurate, and supported by evidence.
- Include the current version of Form T661, SR&ED Expenditures Claim.
- Include Form T2SCH31 or Form T2038(IND) to claim an ITC, plus other forms as needed.
- Submit the SR&ED claim with the original income tax return or with an amended return for the year.
- Submit electronically using CRA-certified tax preparation software; most corporations must file electronically. Individuals, trusts, and partnerships filing a paper return may mail the claim to the Tax Centre where they normally send their tax or information return.
Processing and Agreement
- Complete claims are generally processed within 60 calendar days after the CRA receives the completed claim and the income tax return for the year.
- Refundable claims selected for review are generally completed within 180 calendar days of receipt of the complete claim. Claims selected for an expenditure review under the pre-claim approval process are generally processed within 90 calendar days of receipt of the complete claim; additional projects without pre-claim approval or materially different projects trigger review of both work and expenditures under normal processing times.
- If your claim is incomplete, you must submit the missing information before the SR&ED reporting deadline; after that deadline, additional information will not be accepted and the SR&ED expenditures and related ITC will be lost.
- If further review is needed, the CRA may request an on-site or virtual meeting and supporting records. Acceptance as filed is communicated on your Notice of assessment or reassessment; if you disagree with the decision, you may file an objection up to 90 days from the date of that notice.
- For optional pre-claim approval, the CRA assigns a Research and Technology Advisor (RTA). A meeting may be requested for existing SR&ED claimants in good standing with the CRA and is mandatory for all other businesses. The RTA communicates the decision in writing within 8 weeks of submission of the completed application; there is no formal objection process if pre-claim approval is not granted.
Additional information
- Optional pre-claim approval lets the CRA assess, before work starts or costs are incurred, whether a project will meet the definition of SR&ED.
- You can apply for pre-claim approval for up to 3 projects, and each approval is valid for a duration of up to 3 years.
- If this is your first SR&ED claim or you have not submitted a claim in the last 3 years, you may be selected for the First-Time Claimant Advisory Service, a mandatory virtual service for selected claimants.
- The SR&ED Client Portal within My Business Account includes a pre-claim workbook and an exclusive version of the SALT that lets you save and retrieve an in-progress or completed self-assessment.
Contacts
Frequently Asked Questions about the Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program Program
What is the Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program?
Scientific Research and Experimental Development (SR&ED) tax incentives help corporations, individuals, trusts, and partnerships conducting eligible research and development in Canada through a deduction against income and an investment tax credit, generally at 15% and up to 35% in some cases. Eligible work includes basic research, applied research, and experimental development.
How much funding can be received?
Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program Funds up to 35% of admissible expenses.
What is the deadline to apply?
The program is accepting continuous intake
Who is eligible for the Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program program?
To be eligible for the Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program program, you must:
Claimants must be corporations, individuals, trusts, or partnerships that conduct eligible work.
The work must be conducted in Canada.
The work must be carried out for scientific knowledge advancement or technological advancement and be a systematic investigation or search by experiment or analysis.
What expenses are eligible under Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program?
Basic research
Applied research
Experimental development
Support work that matches the needs of and directly supports eligible SR&ED work
Who can I contact for more information about the Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program?
You can contact Canada Revenue Agency (CRA) by email at OESCPB-SVEDGPO@cra-arc.gc.ca.
Where is the Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program available?
The Scientific Research and Experimental Development (SR&ED) - Tax Incentive Program program is available across Canada.