SR&ED Tax Credit Program for R&D and Innovation
Understanding the SR&ED (R&D) Tax Credit Program
The Scientific Research and Experimental Development (SR&ED) tax credit program, commonly referred to as R&D tax credits, is Canada’s primary tax incentive program supporting innovation. Primarily administered by the Canada Revenue Agency, it is designed to encourage businesses to invest in research and development (R&D) activities.
The SR&ED program provides financial support to companies undertaking work that involves scientific or technological uncertainty, whether through developing new products, improving existing processes, or creating new technological knowledge and expertise.
It represents the largest source of government funding for R&D in Canada, enabling eligible businesses to claim refundable or non-refundable tax credits on qualified expenditures. In many cases, these credits result in cash refunds, directly improving a company’s cash flow and investment capacity.
Businesses Eligible for SR&ED Tax Credits
he SR&ED program is available to a broad range of legal entities, regardless of company size. Eligible entities include:
- Canadian-controlled private corporations (CCPCs)
- Public corporations
- Partnerships
- Sole proprietorships
- Canadian trusts
Eligibility is primarily determined by the nature of the research and development work performed, rather than the industry sector.
Optimizing and Maximizing Your SR&ED Tax Credits | Pro Gestion
A thorough understanding of SR&ED eligibility criteria and qualifying expenditures is essential to maximize your R&D tax credits while maintaining full compliance with tax authority requirements. Since 1993, Pro Gestion has supported Canadian businesses in the analysis, structuring, and defense of their SR&ED claims. Our objective is to maximize eligible claims while minimizing risk in the event of a tax review or audit.
Optimize your SR&ED tax credits today
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