About the program

The federal government and many of the provincial governments provide incentives through the taxation system to individuals and companies that perform scientific research and experimental development (SR&ED) in Canada. These incentives take the form of tax credits, and accelerated or additional tax deductions for expenditures made on SR&ED.

Where SR&ED is conducted by in Canada, the expenditures are deductible as a regular business expense, and also generate substantial tax credits. These tax credits range from 20% of the expenditure, to almost 50%, in favourable circumstances. Often these credits are refundable (even if no taxes have been paid), and thus offer a critical source of financial support for many companies.