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Source verified July 2, 2026
Scientific Research and Experimental Development (SR&ED)
Tax incentives for research and development
Latest source updateLast Update: June 25, 2026Latest change: SR&ED guidance was updated to restore shared-use-equipment eligibility for property acquired after December 15, 2024 and to revise Form T661 instructions.View change
Latest source update
Last Update: June 25, 2026
Latest change: SR&ED guidance was updated to restore shared-use-equipment eligibility for property acquired after December 15, 2024 and to revise Form T661 instructions.
SR&ED rules and Form T661 updated
SR&ED policy guidance now states that first-term and second-term shared-use-equipment rules apply only to property acquired after December 15, 2024, and that capital expenses for scientific research and experimental development for property acquired after that date are eligible again. The Spring 2026 SR&ED update also confirms higher enhanced ITC limits of $3 million -> $6 million, phase-out thresholds of $15 million -> $75 million, and continued eligibility for capital expenditures made after December 15, 2024. Form T4088 and the Form T661 instructions were also updated: the guide is being revised, and users are directed to interim SR&ED news and updates for the new line numbers on Form T661. The new instructions now cover capital expenditures information, pre-claim approval case numbers, and lease-cost rules tied to the December 15, 2024 effective date.
Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Overview
Scientific Research and Experimental Development (SR&ED) tax incentives encourage businesses to conduct research and development in Canada. Claimants can deduct eligible work against income or earn an investment tax credit, with policies, forms, support services, annual statistics, and news updates available.
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Opportunity Score
Moderate potential, but conditions must align.
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
- 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
- Applied research
- Experimental development
- Support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research
Documents Needed
- Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim
- Form T2SCH31 or Form T2038(IND) to claim an ITC
- Other forms as needed, including T1145, T1146, T1174, T1263, and any attachments
Official resources
Program guide
Application form
Supporting document
Eligibility
Who is eligible?
- Corporations
- Individuals
- Trusts
- Partnerships
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
- Training, on-the-job learning, hiring experts to apply existing knowledge, and purchasing proprietary knowledge
Eligible geographic areas
- Canada
How to apply
- Follow the step-by-step guide to prepare your claim yourself.
- Describe your work and report expenditures with Form T661.
- Calculate allowable expenditures.
- Calculate your pool of deductible expenditures.
- Calculate qualified expenditures.
- Get an investment tax credit (ITC).
Processing and Agreement
- The guide for claimants explains the process when the CRA reviews both the work and the expenditures in SR&ED claims.
- The guide outlines what you can expect before, during, and after the review.
- It also includes recommendations on how to prepare for each step of the process.
Additional information
- To receive program updates by email, sign up for the SR&ED tax incentives email list.
- The news and updates page is organized by date, and the program archives are available by year and topic.
- The SR&ED review guide explains what to expect before, during, and after a claim review.
- The SR&ED program policies and guidelines list is available in alphabetical order and can be filtered by type.
Contacts
Frequently Asked Questions about the Scientific Research and Experimental Development (SR&ED) Program
What is the Scientific Research and Experimental Development (SR&ED)?
Scientific Research and Experimental Development (SR&ED) tax incentives encourage businesses to conduct research and development in Canada. Claimants can deduct eligible work against income or earn an investment tax credit, with policies, forms, support services, annual statistics, and news updates available.
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 work must be conducted in Canada.
The work must advance scientific knowledge or achieve a technological advancement.
The work must be a systematic investigation or search by experiment or analysis.
What expenses are eligible under Scientific Research and Experimental Development (SR&ED)?
Basic research
Applied research
Experimental development
Support work in 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 none or by phone at 1-866-578-4538.
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
Who are the financial supporters of the Scientific Research and Experimental Development (SR&ED)?
Scientific Research and Experimental Development (SR&ED) is funded by Canada Revenue Agency (CRA)