Scientific Research & Experimental Development

The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive under Canada’s Income Tax Act, designed to encourage innovation by offering tax credits or cash refunds for eligible R&D work conducted in Canada. The program applies across a wide range of sectors—including medicine, engineering, software, manufacturing, and agriculture.

SR&ED-eligible activities can include:

• Experimental development, applied research, or basic research
   
• Testing new methodologies, techniques, prototypes, or treatment approaches
   
• Addressing scientific or technological uncertainties through structured investigation
   
• Formulating and testing hypotheses using the scientific method
   
• Comparing alternative procedures, tools, or formulations with the goal of advancing knowledge or function
   

Importantly, projects do not need to succeed to qualify—the focus is on the process, not just the outcome.

Claims can be made by corporations, individuals, trusts, or partnerships, and may result in:

• Investment Tax Credits (ITCs) of up to 35% federally, plus provincial credits, potentially recovering up to 68% of eligible costs
   
• Deductions from taxable income for qualifying R&D expenditures
   
• Refundable credits for Canadian-controlled private corporations (CCPCs)
   

To claim SR&ED, detailed documentation is required to demonstrate the work performed, its scientific or technological challenges, and the approach taken to address them. This includes records of planning, experimentation, data collection, and outcomes.

At RCM, we understand the nuances of regulated and research-driven environments. We help ensure your claim reflects the reality of your work and is compliant with CRA expectations—minimizing risk, maximizing return, and reducing the effort on your end.