Scientific Research and Experimental Development (SR&ED) Tax Incentive
Also known as: SR&ED · SRED · SR&ED investment tax credit
SR&ED is Canada's tax incentive for research and development. Most Canadian-controlled private corporations earn a refundable 35% investment tax credit on qualified R&D spending up to the expenditure limit ($6 million for tax years beginning after December 15, 2024) and 15% above it. It is claimed with your income tax return, not applied for, and an optional pre-claim approval can test eligibility first.
Key facts
- Amount
- Up to 35% of costs Most Canadian-controlled private corporations earn a refundable 35% investment tax credit on qualified SR&ED spending up to the expenditure limit ($6 million for tax years beginning after December 15, 2024), and 15% on spending above it.
canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source
Most Canadian-controlled private corporations (CCPCs), whether stand-alone or associated, may earn a refundable ITC at the enhanced rate of 35% on qualified SR&ED expenditures, up to the expenditure limit.
- Instrument
- Tax credit
- Status
- Open, continuous intake no fixed deadline; approvals on the funder's cycle
- Who qualifies
- Businesses Individuals Other applicants
- corporation
- individual
- trust
- partner in a partnership (the partnership itself cannot claim)
- Claimed for qualified research and development carried out in Canada
- The enhanced 35% rate applies to most Canadian-controlled private corporations, up to the expenditure limit
canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source
The basic ITC rate is 15% on qualified SR&ED expenditures for corporations, individuals, trusts, and partners in a partnership.
- Where
- Algoma District · Cochrane District · Greater Sudbury (single-tier census division) · Kenora District · Manitoulin District · District Municipality of Muskoka · Nipissing District · Parry Sound District · Rainy River District · Sudbury District (excl. Greater Sudbury) · Thunder Bay District · Timiskaming District
11 of 11 Northern Ontario districts are eligible for this program. A filled dot is eligible, an outline is not.
How do you apply?
- Optional: apply for pre-claim approval before the work starts
- Do the R&D work and keep records
- Submit the SR&ED claim with the income tax return
canada.ca · Last verified Oct 29, 2026 · Auto-checked against official source
You can submit an SR&ED claim with your income tax return to access the 2 available tax incentives:
Common questions
Do I apply for SR&ED like a grant?
No. You claim it with your income tax return. CRA now offers an optional pre-claim approval to assess whether proposed work will be eligible before you begin; you still file the claim either way.
Is the SR&ED credit refundable?
For most Canadian-controlled private corporations, the 35% credit on qualified expenditures up to the expenditure limit is refundable, so it can produce a refund even without tax owing.
Where else could this money come from?
Chosen by what these programs have in common with this one, not by hand. The reason is shown for each, so you can judge whether it holds.
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Mitacs Accelerate
Open, continuous intake both for small business, expansion and startups & new entrepreneurs; national · Varies; see program
Notes on this record
The expenditure limit was $3 million for tax years beginning before December 16, 2024.
Apply
Apply on the funder’s site and confirm current terms there: