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The Scientific Research and Experimental Development (SR&ED) Program 


The program concept is simple. If we can demonstrate that the work you do is SR&ED-eligible, and if you meet certain criteria like that you are a privately-held company, have less than $50M in capital, and have a taxable income of less than $500,000 per year, then in Quebec, for example, you will earn c.80% of the salaries that you pay out back, by Federal and Provincial government cheques. The amounts vary in extent from province to province. In Ontario, the same work would yield c.70% in credits. We also recover a significant portion of the money that your firm has spent on contracts/sub-contracts and materials.

The question of how much of your work qualifies is where we step in. For your work to qualify, we demonstrate, on your behalf, that the work you have done meets the following three criteria:

  1. Technological Advancement was sought;
  2. Technological Obstacles were encountered; and,
  3. Systematic Investigation was carried out.

SR&ED Eligible work likely exists in any of the following:

  • Creation or improvement of materials, devices, products, or processes;
  • Applied research to advance scientific knowledge with a specific practical application in view;
  • Basic research to advance scientific knowledge without a specific practical application in view; and,
  • Support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research, but only if the work is related to and directly supporting the work described above.

 

For more information, please visit the Canada Revenue Agency's web site for a comprehensive overview of the Scientific Research and Experimental Development (SR&ED) program.

http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html