Overview
| Scheme | Scientific Research and Experimental Development (SR&ED) tax incentive program |
|---|---|
| Administered by | Canada Revenue Agency (CRA) |
| Benefit type | Investment tax credit, and a deduction against income |
| Rates | Enhanced rate of 35% on qualified expenditure up to the expenditure limit, for most CCPCs and, for tax years beginning after 15 December 2024, eligible Canadian public corporations. Basic rate of 15%. |
| Expenditure limit | C$6 million a year, for tax years beginning after 15 December 2024 |
| Refundable | For most CCPCs at the enhanced rate, current expenditure is 100% refundable and capital expenditure 40% refundable, up to the limit. |
| Before you claim | No registration. Optional pre-claim approval has been available since 1 April 2026. |
| Claim deadline | 12 months after the filing due date of the income tax return |
Who can claim. Corporations, individuals, trusts and partnerships that carry on SR&ED in Canada. The enhanced 35% credit is for most Canadian-controlled private corporations (CCPCs) and, for tax years beginning after 15 December 2024, eligible Canadian public corporations.
Eligibility
SR&ED is systematic investigation or search carried out in a field of science or technology by means of experiment or analysis. It covers basic research, applied research and experimental development, and support work that directly supports them.
Documentation
Form T661 asks you to describe the work and calculate your expenditure. Keep records made as the work happens, such as hypotheses, test results and time records, that show the systematic investigation.
Calculation and rates
| Item | Detail |
|---|---|
| Enhanced credit | 35% on qualified expenditure up to C$6 million |
| Basic credit | 15% on expenditure above the limit, and for other claimants |
| Refunds for most CCPCs | 100% of the enhanced credit on current expenditure, 40% on capital expenditure |
| Unused credits | Can be carried back 3 years or forward 20 years |
How to claim
- Consider pre-claim approvalOptional, and available since 1 April 2026, to have planned work assessed before you incur most of the cost.
- Complete Form T661Describe the SR&ED work and calculate the expenditure.
- Calculate the creditCorporations use Schedule 31. Individuals use Form T2038 (IND).
- File by the reporting deadlineNo later than 12 months after the filing due date of the income tax return for the year.
| Event | When |
|---|---|
| Pre-claim approval | Optional, available since 1 April 2026 |
| Claim | With the income tax return, and no later than 12 months after its filing due date |
Official sources
- Scientific Research and Experimental Development (SR&ED) tax incentivesCanada Revenue Agency
- Get an investment tax credit (ITC)Canada Revenue Agency
- How to apply for pre-claim approvalCanada Revenue Agency
Educational content only, not tax advice. General information on the Canada scheme, checked against the sources above on 1 October 2026. See the disclaimer.
Programs for Canada
SR&ED eligibility, the enhanced and basic credits, the C$6 million limit, Form T661 and Schedule 31, and pre-claim approval.
| Program | For | |
|---|---|---|
| R&D Tax Fundamentals The grounding every claimant needs, in any of the countries we cover: what research and development means for tax purposes, how a claim is built from project to filing, which records stand up to review, and how to work with an advisor from an informed position. | Companies & in-house finance teams | Register interest |
| Technical Teams Program For engineers, scientists and project leads whose work is the subject of a claim: why their input matters, how to identify uncertainty, record work as it happens and write the narrative. | Companies & in-house finance teams | Register interest |
| Startups and Scale-ups For founders and early finance hires: whether a claim is worth making, how to set up records from day one, how funding interacts with the incentive and what the first claim involves. | Companies & in-house finance teams | Register interest |
| In-House Finance Team Program For finance and tax teams that want to run R&D claims internally, or manage an external advisor from a position of knowledge: project identification workshops, time capture, cost allocation, the technical narrative, internal review and fee benchmarking. | Companies & in-house finance teams | Register interest |
| Advisor and Practitioner Program For accountants and advisors who prepare claims for clients: legislation and guidance, eligibility analysis, advanced calculations, technical interviews, reports, disputes, and ethics, integrity and fee arrangements. | Tax professionals | Register interest |
| Leadership Briefing: R&D Tax Relief for Executives A short, board-level overview for founders, directors and executives: what the incentive is worth to the business, the risks of a poorly prepared claim, how to govern the process, and what good advisors cost. | Companies & in-house finance teams | Register interest |
Guides
05 Sept 2026How to document R&D activities as you go: a calendar for the financial yearContemporaneous records are the difference between a claim that is defended in an afternoon and one that is argued about for a year. Here is a documentation routine a busy team can actually keep.Documentation and compliance28 Aug 2026Common R&D claim mistakes and how to avoid themThe same handful of errors appear in weak claims in every jurisdiction. Most are avoidable with a little structure. Here are the ones that matter, why they matter, and what to do instead.Running a claim