What is SR&ED?
Every country wants to be at the forefront of innovation, and Scientific Research & Experimental Development ("SR&ED") is Canada's primary tax incentive to encourage investment in innovation. It does this by providing refundable and non-refundable tax credits as a percentage of certain expenses incurred by business. In the fiscal 2024 year, over $4 billion dollar in tax credits were awarded to over twenty thousand companies, individuals or partnerships.
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Who Qualifies?
You don’t need a lab coat or to be in a traditional tech company. Companies in manufacturing, software, AI, engineering, agriculture, food processing, and more can qualify.
To be eligible, your work should involve:
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Technological uncertainty – A challenge without a ready-made solution.
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Systematic investigation – A structured approach to testing or problem-solving that usually includes a hypothesis and some experimentation.
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Advancement of knowledge – Generating new insights, methods, or improvements. Note that the project does not need to succeed to potentially qualify for SR&ED​​​
Why Work With an SR&ED Advisor?
While the program is generous, the entire process can be complex. As the SR&ED program is administered by the Canada Revenue Agency ("CRA"), the information required to make a successful claim is found in Canada's Income Tax Act and supported by forty plus years of tax court decisions. The application is different from typical grants and is part of the corporate T2 return (T1/T5013 for individuals/partnerships respectively. It requires detailed technical and financial documentation to support claims. Each province also has a complicated method of claiming the provincial tax credit, with Alberta's Innovation Employment Grant ("IEG") being notoriously challenging.
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By working with an SR&ED advisor, you can:
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Maximize the value of your claim
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Ensure compliance with CRA requirements
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Save time by focusing on your business while experts handle the claim
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Reduce risk of SR&ED reviews
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Support in case of a SR&ED audit
Email us for a free consultation!
PO Box 21093
Edmonton RPO Terwillegar, AB T6R 2V4
780-700-9091