Scientific Research & Experimental Development (SR&ED) Tax Incentive
A federal tax incentive that reduces income tax payable — or provides a cash refund — for qualifying R&D done in Canada. Applies to basic research, applied research, and experimental development, and can stack with provincial R&D credits. Changed in 2026: Budget 2025 (Bill C-15) doubled the enhanced-credit expenditure limit from $3M to $6M, retroactive to tax years beginning on or after December 16, 2024, and raised the taxable-capital phase-out to $15M–$75M.
Who can apply
Eligibility is guidance only — always confirm directly with Canada Revenue Agency (CRA) before planning around this program. Never assume you qualify based on this summary alone.
Frequently asked
What is the Scientific Research & Experimental Development (SR&ED) Tax Incentive?
A federal tax incentive that reduces income tax payable — or provides a cash refund — for qualifying R&D done in Canada. Applies to basic research, applied research, and experimental development, and can stack with provincial R&D credits. Changed in 2026: Budget 2025 (Bill C-15) doubled the enhanced-credit expenditure limit from $3M to $6M, retroactive to tax years beginning on or after December 16, 2024, and raised the taxable-capital phase-out to $15M–$75M.
Who can apply for the Scientific Research & Experimental Development (SR&ED) Tax Incentive?
Scientific Research & Experimental Development (SR&ED) Tax Incentive is open to Canadian corporations, partnerships, or individuals doing eligible R&D; highest benefit for CCPCs in Canada (all provinces including Ontario). Not eligible: Market research, routine data collection, quality control, social-science research. Confirm your specific eligibility directly with Canada Revenue Agency (CRA) before applying.
How much funding does the Scientific Research & Experimental Development (SR&ED) Tax Incentive provide?
The Scientific Research & Experimental Development (SR&ED) Tax Incentive can provide up to Up to 35% refundable credit on up to $6M of eligible R&D (CCPCs). Coverage: 35% refundable ITC for CCPCs; 15% for other businesses. Current funding availability and your specific entitlement must be confirmed with Canada Revenue Agency (CRA) — amounts depend on program budget and individual circumstances.
How do I apply for the Scientific Research & Experimental Development (SR&ED) Tax Incentive?
Work must advance scientific knowledge or achieve technological advancement; file with your corporate return; consult a qualified SR&ED practitioner. Visit the official program page for the full application process. Deadline: Filed annually with your corporate tax return.
This page summarizes publicly available program information verified against official sources. All amounts, deadlines, and eligibility details must be confirmed with the program administrator before applying.
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