SR&ED Tax Credit Refund Rates & Eligible Expenditures

Maximize Your Returns through Strategic Incorporation

SR&ED tax credit refund rates in Québec are influenced primarily by the legal status and structure of your business. Corporations generally benefit from significantly higher reimbursement rates than unincorporated businesses. In many cases, incorporating can nearly double the refundable portion of eligible R&D expenditures.

What Other Factors Determine Your SR&ED Refund Rate?

Beyond incorporation status, several additional factors affect the SR&ED refund rate and how the credits are received (refundable cash refunds versus non-refundable tax credits), including:

• Taxable income level.
• Value of corporate assets.
• Business size and ownership structure.
• Type of eligible R&D activities and expenditures.

Breakdown of SR&ED Reimbursement Rates in Quebec

The table below outlines the main expenditures eligible for SR&ED tax credits as well as the corresponding reimbursement rates.

Eligible Expenditures	Below 50,000$ (total)	Above 50,000$ (total)
Salaries for SR&ED	54%	74%
Materials	35%	35%
Outsourcing - SR&ED activities	28%	38%
Outsourcing - Support activities	0%	10%
Support salaries	0%	20%

Strategic Planning for Long-Term SR&ED Success | Pro Gestion

Maximizing your refund starts long before the deadline. Pro Gestion provides the strategic planning needed to structure your projects and expenditures for optimal recovery. We navigate the complexities of CRA and Revenu Québec requirements, ensuring your claims are both robust and secure so you can focus on innovating for the future.

Optimize your SR&ED tax credits today

Call Us: (877) 433-7183 ext. 223 (Toll-free across Canada)

Email Us: info@pro-gestion.com