Government Programs for Canadian Manufacturers

Scientific Research and Experimental Development (SR&ED) Tax Incentive Program

Website and Administrative Organization(s):   Scientific Research and Experimental Development (SR&ED) Tax Incentive Program
Canada Revenue Agency
Relevance: Program or service that is supportive of innovation-related initiatives, or provides substantial large scale (non-debt) funding that could be used for a technology initiatives.
Industry: All Industries
Location: Canada
Objective(s): The Scientific Research and Experimental Development program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development in Canada that will lead to new, improved, or technologically advanced products or processes.
Focus:
  1. Financing
  2. Primary Research
  3. Pre-commercialization Technology Development
Eligibility: Canadian-controlled private corporations and other Canadian corporations, proprietorships, partnerships, and trusts carried out in Canada
Value:
  • Canadian-controlled private corporation: Tax credit of up to 35 percent of the first $2 million of qualified expenditures, and 20 percent on the balance
  • Other Canadian corporations, proprietorships, partnerships, and trusts: Tax credit of up to 20 percent on qualified expenditures
Application Process: Complete Form T661:Claim for Scientific Research and Experimental Development (SR&ED) in Canada. Also complete one of the following:
  • Schedule T2SCH31, Investment Tax Credit — Corporations, if you are a corporation; or
  • Form T2038(IND), Investment Tax Credit (Individuals), if you are an individual.