Government Grant: SR&ED

Looking For a guaranteed Government GRANT?

The Scientific Research and Experimental Development (SR&ED) Program uses tax incentives to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada. These tax incentives come in three forms: an income tax deduction, an investment tax credit (ITC), and, in certain circumstances, a refund.

The SR&ED Program provides more than $3 billion in tax incentives to over 20,000 claimants annually, making it the single largest federal program that supports business R&D in Canada. The program is administered by the Canada Revenue Agency (CRA).

Corporations, individuals, trusts and members of a partnership can use these Government of Canada incentives.

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Are you Eligible for SR&ED?

The definition of SR&ED provided in subsection 248(1) of the Income Tax Act not only describes why and how SR&ED is performed, it also describes what work is eligible:

Paragraphs (a), (b) and (c) of the definition describe the three categories of eligible work that you can include in your claim;
Paragraph (d) lists other work that you can also include in your claim, as long as this work is commensurate with the needs, and directly in support, of the work described in paragraphs (a) to (c) that is performed in Canada; and,
Paragraphs (e) to (k) list work that is excluded, and thus, not eligible.

Note that the list of excluded work is considered only after you have identified that eligible work has been performed. Even if some of your work falls in the excluded categories, you may still have other work that is eligible. What is important is to claim only the expenditures for the eligible work.

In determining what you can claim, it is also important to consider:

what work was done
who performed the work
when the work was conducted
how long it took to do the work

After identifying the eligible work performed, you can claim the allowable expenditures incurred for the work. These may include expenditures for:

Industries we Specialize in:

Agriculture and Agri-food
Aviation
Biotechnology
Construction and Engineering
Consumer Products
Diagnostics
Energy and Natural Resources
Environmental Sciences
Food and Beverage
Life Science
Manufacturing
Marine Engineering
Medical and Healthcare Professionals
Mining
Pharmaceuticals
Oil and Gas
Professional Services Firms
Technology
Veterinary Medicine

Our team can assist you with all of your SR&ED requirements.

Some examples of this support include:
Guidance with gathering required information to support the SR&ED claim and develop the framework for the projects being claimed
Development of accurate project descriptions
Review of your own taxpayer prepared SR&ED claim and provide feedback
Assistance with filing your SR&ED claim and amending previous corporation tax filings, if required

When submitting an SR&ED application, it is important that it follows the CRA application process and meets the eligibility requirements. Our specialists can help you put together the documents you need to support your SR &ED application and create a framework for the projects you are applying for.

A company may encounter discrepancies between its application and the CRA’s eligibility requirements in several instances. Our experts can help you negotiate and resolve disputes with the CRA to ensure that you receive the maximum return on your SR &ED application.

The CRA uses its “Five Questions” to determine SR &ED eligibility. These questions are:

Was there scientific or technological uncertainty?
Did the effort formulate hypotheses specifically aimed at reducing or eliminating that uncertainty?
Does the overall approach taken correspond to a systematic investigation or search, including formulation and testing of hypotheses through experimentation or analysis
Was the overall approach pursued with the goal of achieving scientific or technological progress?
Were records kept of the hypotheses tested and their results during the course of the work?