Scientific Research & Experimental Development Tax Credit

Also known as: SR&ED

Canada's largest R&D incentive. CCPCs receive a 35% refundable investment tax credit on up to $6M of eligible R&D expenditures per year, for tax years beginning on/after Dec 16, 2024 — up to $2.1M refundable annually. (History: the Dec 2024 Fall Economic Statement first proposed raising the limit from $3M to $4.5M; Budget 2025 then raised it further to $6M, confirmed as now in effect on CRA's own SR&ED updates page. A prior version of this entry stopped at the $4.5M interim figure — corrected 2026-07-10.) Non-CCPCs get 15% non-refundable. Eligible capital expenditures were also restored (property acquired after Dec 15, 2024). Claimed annually on the T2 corporate tax return. ⚠️ Must be prepared by a specialist — refer client to SR&ED consultant or their accountant.

Who qualifies

• Any Canadian corporation conducting scientific research or experimental development
• Work must advance scientific knowledge or resolve technological uncertainty
• CCPCs: 35% refundable credit on first $6M of eligible expenditures (for tax years beginning on/after Dec 16, 2024; raised in two steps from $3M → $4.5M → $6M, the last confirmed via Budget 2025) — phase-out now at $15M–$75M taxable capital
• Non-CCPCs: 15% non-refundable credit
• Capital expenditures eligible again for property acquired after Dec 15, 2024
• Filed on T2 with Form T661 — requires detailed project descriptions
• ⚠️ Complex — requires SR&ED specialist. Contingency-fee SR&ED consultants are widely available

Typical applicant

Any company developing new technology, software, processes, or products — from startups to large manufacturers. Especially valuable for companies with significant technical staff payroll

Verified against the official program page as of 2026-07-10. Programs change — always confirm current details with the program office before committing project spend.