Does my project qualify for innovation capital?
New for 2026: Eligible Canadian public corporations can now qualify for enhanced refundable credits. To qualify, you must be Canadian resident, have shares listed on a designated stock exchange (or elect to be a public corporation), and not be controlled by non-residents.
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Technological Advancement: The goal is to generate or discover new knowledge that advances the understanding of science or technology. In business terms, this means attempting to create something new or improve existing capabilities beyond current knowledge.
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Scientific or Technological Uncertainty: These are challenges where existing methods, procedures, and knowledge cannot solve the problem. Competent professionals in the field must be unable to predict the outcome using their existing training and knowledge base—new knowledge is required to overcome the uncertainty.
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Systematic Investigation: Your research project must follow a systematic approach including: documenting your process, identifying technological uncertainties or problems, formulating hypotheses to solve them, conducting testing and experimentation through means of experiment or analysis, and reaching logical conclusions based on results.
What work doesn’t qualify for SR&ED?
Important Note: Simply adopting or implementing existing technology does not qualify as SR&ED. However, developing new processes or undergoing experimental modifications to overcome technological uncertainties may qualify.
What are SR&ED-eligible expenditures?
Salaries or wages of employees and owners while conducting eligible R&D
Cost of subcontractors involved in the R&D (generally 80% of contractor costs for arms-length contractors)
Materials consumed or transformed in R&D
Overhead costs attributed to the R&D project
Capital expenditures (restored as of December 16, 2024): Equipment and machinery used all or substantially all (?90% of operating time) for SR&ED in Canada, or that consume substantially all of their value in SR&ED
How can I calculate overhead costs?
What are the enhanced credit rates for 2026?
FOR CCPCS
FOR ELIGIBLE CANADIAN PUBLIC CORPORATIONS
FOR OTHER CORPORATIONS, INDIVIDUALS, PARTNERSHIPS AND TRUSTS
These enhanced rates apply to taxation years beginning on or after December 16, 2024.
What documents do I need to apply for SR&ED?
FILING DEADLINE
Must be filed no later than 18 months after your tax year-end.
How can I support my application?
If you’re a new claimant filing for SR&ED, understanding the CRA’s expectations may be challenging. Here are crucial pointers for claim acceptance:
Get the details right
All information must be accurate and complete. Descriptions should clearly convey what technological uncertainties you faced, the systematic approach you took, and the outcomes achieved.
Keep comprehensive records
Track all costs and vendor invoices throughout the project. Document your research steps, experimental results, hypotheses tested, and conclusions reached. This creates the audit trail needed for CRA review.
Incorporate SR&ED into daily workflows
Document in real-time as you design experiments, discuss progress with colleagues, conduct testing, and analyze results. Contemporary documentation is stronger than retrospective reconstruction.
Understand what’s new
Failed experiments still qualify—SR&ED recognizes that unsuccessful attempts contribute to technological advancement. Success is not required; systematic investigation to overcome uncertainty is.
Get expert help
When SR&ED qualification is complex or you want to maximize your claim value, consult with specialists who understand both the technical requirements and CRA review processes.
Questions? Boast can help.
Reach out to talk to one of our SR&ED experts to see if your projects are eligible for non-dilutive funding. Our technology and expertise combined give you the tools to derive greater value from your R&D processes every day.
