What is SR&ED?
The Scientific Research and Experimental Development (SR&ED) program is Canada’s largest federal tax incentive initiative, designed to encourage innovation by supporting businesses engaged in research and development (R&D) activities.
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Administered by the Canada Revenue Agency (CRA), the SR&ED program provides over $3 billion in financial support to more than 20,000 businesses annually. Companies can recover up to 70% of eligible R&D expenses through refundable and non-refundable tax credits, making it a valuable resource for businesses investing in new technologies, product development, and process improvements.
Whether you're a startup, small business, or large corporation, SR&ED funding can help accelerate innovation, reduce financial risk, and enhance competitiveness in today’s fast-evolving market.
How We Can Help.
At ClaimPlus Consulting, we simplify the entire process:
Document Review
We review all your documents to ensure compliance with CRA requirements.
Filling the Gaps
We help you fill in the gaps if anything is missing.
Accurate Claim Filing
We prepare and file your claim accurately to maximize your benefits.
Tax Refunds & Credits.
The SR&ED program provides two main types of tax incentives:
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Deduction Against Income: Claimants can deduct eligible SR&ED expenses to lower taxable income.
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Investment Tax Credit (ITC): Businesses may also earn an ITC, which can be refundable or non-refundable, depending on the company's tax status.
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Small businesses benefit from higher credit rates under the SR&ED program, with credits fully refundable—meaning they are issued as direct payments.
Additional Provincial Support.
Many provinces offer additional credits to enhance support for R&D. For example, Ontario’s Innovation Tax Credit (OITC) provides an 8% refundable tax credit on qualifying SR&ED expenses, boosting the value of combined federal and provincial incentives.
These programs significantly reduce the financial burden of innovation for businesses.
To qualify for SR&ED program,
a few key conditions must be met:
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​​Eligible expenditures should include salary, subcontractor, or material costs directly linked to the SR&ED work.
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The work itself must qualify as SR&ED, addressing technological challenges or advancing knowledge.
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At least 90% of the claimed work must be conducted within Canada.
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Salary and subcontractor costs must be paid to Canadian entities with a SIN or BN.
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Claimed expenses must have been incurred within 18 months prior to the fiscal year-end of the SR&ED filing.
