SR&ED in 2026: What’s new for innovation tax credits

Canada’s Scientific Research and Experimental Development tax incentives have changed. In this French-language helloDarwin webinar, Jeff Carrier speaks with government funding analysts Antoine Giroir and Charles Couture-Lebrun about the federal updates, Quebec’s new CRIC, practical project examples and the records businesses should keep.

What this webinar covers

The discussion is designed for Canadian business leaders, finance teams and technical managers who need to decide whether innovation work may fit SR&ED and how tax credits can interact with grants or other government support. For current rates, eligible costs, required documents and filing steps, use helloDarwin’s SR&ED program guide.

• How to distinguish technological uncertainty and experimentation from routine implementation

• Examples involving custom software and AI, automation, robotics, industrial equipment and prototypes

• The federal changes now in force and the role of Quebec’s CRIC

• How to document time, tests, materials, contracts, failures and technical decisions

When work may fit SR&ED

For the official eligibility test, the CRA’s current eligibility guidance focuses on systematic investigation or research carried out through experiment or analysis to achieve scientific or technological advancement. A project does not need a laboratory, but buying a standard solution or repeating a known process is not enough on its own. For more examples and claim-planning guidance, read helloDarwin’s practical SR&ED explainer.

Practical examples discussed

• Developing custom software or AI systems when available knowledge cannot resolve the technical problem

• Testing several versions of a product, process or prototype and learning from unsuccessful approaches

• Integrating equipment in a way that requires new engineering work, rather than repeating a proven installation

• Adapting a technology to Canadian operating conditions when technical barriers still need to be resolved

What changed federally in 2026

For the enacted federal changes, the CRA confirms that Bill C-15 received royal assent on March 26, 2026. For tax years beginning after December 15, 2024, the annual expenditure limit for the enhanced 35% federal investment tax credit increased from $3 million to $6 million. The taxable-capital phase-out range moved to $15 million through $75 million, and eligible Canadian public corporations gained access to the enhanced credit.

For capital-cost details, eligible SR&ED capital expenditures incurred after December 15, 2024 can also be claimed, subject to the current rules. Review the CRA’s capital-expenditures policy before treating equipment, facilities or rental costs as eligible.

Quebec’s CRIC broadens the conversation

For the Quebec rules, Revenu Québec describes the refundable tax credit for R&D, innovation and pre-commercialization (CRIC) as a 20% base credit, with a 30% rate on up to the first $1 million of qualifying R&D or pre-commercialization expenses above the applicable exclusion threshold. Qualifying categories can include wages, certain subcontracting and research-organization payments, and capital property acquired for eligible work in Quebec.

Prepare a defensible claim

A strong claim connects the technical story to the accounting record. Start during the project rather than rebuilding the evidence after year-end. Keep enough detail to show what was unknown, what was tested, what changed and which costs relate to the eligible work.

• A dated description of the technological problem and the hypotheses tested

• Test plans, versions, results, failures and decisions

• Employee time tied to specific SR&ED activities

• Invoices, contracts, material usage and ownership of resulting intellectual property

For filing deadlines, the CRA’s filing-requirements policy says the SR&ED reporting deadline is 12 months after the income-tax return filing due date. For corporations, this is generally 18 months after the tax year ends. Filing with the return is still the practical target.

Combining credits with other funding

SR&ED credits can form part of a wider funding plan, but grants, contract payments and other government assistance may change the eligible expenditure calculation. Build one project-level model that assigns each cost once, respects each program’s stacking limit and preserves the supporting agreements.

Next steps

Watch the webinar, identify the projects where your team faced genuine scientific or technological uncertainty, and review the current federal and provincial rules before calculating a claim. Explore helloDarwin’s SR&ED consulting services if you want help validating projects, documenting technical work or preparing the claim. Eligibility and refundability depend on the claimant, the work, the timing and the expense. This recap is general information and is not tax or legal advice.