What is the SR & ED Program?

The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program positioned to encourage Canadian businesses to conduct research and development (R&D) in Canada that will lead to advancement of products or processes.

At up to 68.475% of eligible expenditures in the form of refundable tax credits, this is the most generous program benefiting industrial research and development provided by the government. Expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts may be eligible going back up to 2 fiscal years.

A program specific department of the CRA is responsible for the administration of the SR&ED incentive and your company may be eligible regardless of its tax status.