Scientific Research and Experimental Development (SR&ED) tax incentives
Scientific Research and Experimental Development (SR&ED) tax incentives / Encouragements fiscaux à la RS&DE
Open continuously
No deadline — apply whenever you are ready.
No fixed award. Two incentives: a deduction against income, and an investment tax credit (ITC). CRA's ITC policy states 'CCPCs may earn the SR&ED ITC at an enhanced rate of 35%' on qualified expenditures up to an expenditure limit (the policy page states a maximum threshold of $3 million; the limit has been the subject of announced federal increases which we did not verify on the CRA page), and 'The basic rate of SR&ED ITC is 15%'. Refundability: up to 100% of the unclaimed balance earned at the 35% enhanced rate for qualifying CCPCs, and 40% of the unclaimed balance at the basic rate.
Canada Revenue Agency (CRA)
public · national
Deadline: rolling — Claimed with the corporate income tax return for the year: 'Claimants should submit their SR&ED claim with their income tax return for the year.' Statutory reporting deadlines apply (not verified on this page).
This funder does not publish a success rate. We rank it using the rate observed across similar programmes and label it as an estimate rather than implying we know.
Moderate — a form and supporting documents.
Who can apply
- Stage: pre_seed, seed, series_a, growth
- R&D activity required
- Locally registered entity required
'Corporations, individuals, trusts, and partnerships that conduct eligible work may be able to claim SR&ED tax incentives for the year.' The enhanced 35% refundable rate is limited to Canadian-controlled private corporations (CCPCs). Work must be conducted in Canada.
How to apply
- Determine that your work meets the SR&ED definition (scientific or technological uncertainty, systematic investigation, advancement). — link
- Link eligible work to claimable expenditures: 'To benefit from the incentives, you must link your eligible work to expenditures you can claim.' — link
- File Form T661 (and T2SCH31 for corporations or T2038(IND) for individuals) with the income tax return. — link
What you will need
- Form T661 – Scientific Research and Experimental Development (SR&ED) Expenditures Claim
- Schedule T2SCH31 (corporations) or Form T2038(IND) (individuals)
- Contemporaneous technical and financial documentation supporting the claim (if applicable)
Source. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program.html — checked 2026-08-14
"The Scientific Research and Experimental Development (SR&ED) tax incentives are intended to encourage businesses to conduct research and development in Canada. ... There are 2 tax incentives: Claim a deduction against income; Earn an investment tax credit (ITC)."