NorthGrants
Federal · Tax Credit · Verified 2026-08-24

Scientific Research & Experimental Development (SR&ED)

SR&ED is the largest single source of R&D funding in Canada. If you're a CCPC doing technical work to resolve uncertainty, you can recover 35% of eligible expenditures as a refundable tax credit. Budget 2025 raised the CCPC expenditure limit from $3M to $6M, restored capital equipment eligibility, and lifted the maximum refundable ITC to $2.1M.

Common questions

What counts as SR&ED-eligible work?
Work that attempts to resolve scientific or technological uncertainty through systematic investigation. The work doesn't need to succeed; it needs to be documented, technically uncertain at the start, and conducted by qualified personnel.
When do I file an SR&ED claim?
SR&ED claims are filed with your T2 corporate tax return for the fiscal year in which the work was performed. You have 18 months from the end of the tax year to file. Earlier is better, since refunds typically arrive within 60-120 days of acceptance.
How much does an SR&ED claim cost to prepare?
Most consultants charge 15-30% of the recovered amount. NorthGrants gives you the full claim framework (technical narratives, project tracker, expenditure mapping) so you can either submit directly or hand it to an accountant for filing only.
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What is Scientific Research & Experimental Development (SR&ED)?

Scientific Research & Experimental Development (SR&ED) is delivered by CRA as a tax credit. Funding is typically 35% refundable on up to $6M of qualified expenditures (CCPCs); 15% for others. This page covers eligibility, intake status, and what an application actually requires.

At a glance

Funding amount35% refundable on up to $6M of qualified expenditures (CCPCs); 15% for others
Cost shareClaim on tax return
LevelFederal
Program typeTax Credit
Delivered byCRA
Available inAll provinces
Intake statusOpen - Rolling
Last verified2026-08-24

Who qualifies

  • Eligible industries: All industries with R&D activity
  • Eligible activities: Basic/applied research; experimental development; eligible support work

Watch out for

Non-R&D activities; social sciences/humanities; routine testing or data collection

Deadlines & how to apply

MATERIALLY EXPANDED. Bill C-15 received Royal Assent March 26, 2026, effective for tax years beginning after Dec 15, 2024. What changed: the annual expenditure limit for the enhanced 35% refundable rate rose from $3M to $6M, doubling the maximum refundable credit from $1.05M to $2.1M. The taxable capital phase-out range moved from $10M-$50M to $15M-$75M, so materially larger CCPCs now keep the enhanced rate. Capital expenditures are eligible again for property acquired or available for use after Dec 15, 2024 (enhanced-rate CCPCs get partial refundability up to 40% on capital ITCs; current expenditures remain fully refundable). Eligible Canadian public corporations can now access the 35% enhanced ITC. Note the $4.5M limit announced in Dec 2024 never took effect as a standalone; it was superseded by Budget 2025. Claim on Form T661 with the corporate return, within 18 months of year end. CRA policy documents and the T4088 guide are still being revised.

View official program page →

How NorthGrants helps with Scientific Research & Experimental Development (SR&ED)

Most business owners read about Scientific Research & Experimental Development (SR&ED), see the funding amount, and stop. The hard part isn't finding the grant. It's building an application that actually wins.

NorthGrants builds the full application framework for you: a tailored project narrative aligned to this program's evaluation criteria, a budget structure that maps to eligible costs, and the supporting documentation checklist. You review it, refine the parts only you can write, and submit.

Related grants

Crédit d’impôt pour la recherche, l’innovation et la commercialisation (CRIC) - Quebec
30% refundable on first $1M of qualified expenditures above exclusion threshold; 20% above $1M
Ontario SR&ED Provincial Tax Credit
OITC 10% refundable (CCPCs) + ORDTC 3.5% non-refundable (all corporations)
Atlantic SR&ED - NS/NB/NL Provincial Components
15% of eligible provincial R&D expenditures, fully refundable (NS, NB, NL)
Canada Small Business Financing Program (CSBFP)
Up to $1.15M

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