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OngoingFederalOther incentives

Scientific Research and Experimental Development (SR&ED) Tax Incentive

Canada Revenue Agency

Up to $6M

Basic ITC 15%; enhanced ITC 35% for most CCPCs on up to $6 million of qualified expenditures for tax years beginning after December 15, 2024 ($3 million before). ITC at 35% on current expenditures is 100% refundable; on capital expenditures 40% refundable; other qualifying corporations get a 40% refund of the 15% ITC.

Tax deduction plus investment tax credit for businesses conducting eligible R&D in Canada. Most CCPCs earn an enhanced, refundable 35% ITC up to an expenditure limit; other claimants earn 15%.

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How to apply

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Who qualifies

Corporations, individuals, trusts and partnerships conducting eligible SR&ED in Canada. The enhanced 35% rate applies to most CCPCs (and, for tax years beginning after December 15, 2024, eligible Canadian public corporations) up to the expenditure limit. For CCPCs with tax years starting after December 15, 2024, the $6 million limit is reduced by prior-year taxable capital: it starts reducing at $15 million and becomes nil at $75 million (previously $10 million to $50 million). The limit is shared by associated corporations.

Small businessCorporation

Good to know

  • Funding: $6,000,000 is the expenditure limit, not a payment cap (max enhanced credit = 35% x $6M = $2.1M per year). Excess expenditures earn 15%. Unused ITCs carry back up to 3 years and forward up to 20 years.
  • Cost share: 35% of eligible costs
  • Notes: Ontario provincial R&D credits are covered in the Ontario segment.

Evidence from the official page

  • amount“The ITC earned at the 35% enhanced rate on current expenditures is 100% refundable” source ↗
  • amount“The basic ITC rate is 15% on qualified SR&ED expenditures” source ↗
  • amount“$6 million for tax years beginning after December 15, 2024” source ↗
  • amount“The ITC earned on capital expenditures is 40% refundable” source ↗
  • amount“carry it forward up to 20 tax years” source ↗

Verified 2026-10-08 · High confidence. Always confirm on the official page before applying.