How Canada’s expanding SR&ED program creates unprecedented opportunities for transportation and mobility innovators

Boast recently partnered with SmartTO to host an interactive webinar exploring how mobility startups and SMEs can maximize their returns from Canada’s Scientific Research and Experimental Development (SR&ED) tax credit program. With over $4.1 billion distributed annually, SR&ED remains Canada’s largest source of federal R&D support, and 2025 brings game-changing expansions that particularly benefit mobility companies.

Our discussion with Carlos Coelho (Head of Sales) and Mat Rutishauser (Solutions Consultant) revealed why the mobility sector is uniquely positioned to benefit from these changes, and how companies can optimize their approach to unlock significant funding.

Watch the Full Webinar Here

Why 2025 is a Transformative Year for Mobility R&D Funding  

The proposed updates to Canada's SR&ED program represent the most significant expansion in over a decade. For mobility companies, these changes address long-standing limitations that previously restricted access to the program's full benefits. 

Major Proposed Program Enhancements  

Enhanced Credit Limits: The refundable credit ceiling increases from $3M to $4.5M annually, potentially delivering up to $1.575M in cash back versus the previous $1.05M maximum.  

Return of Capital Expenditures: For the first time since 2014, companies can claim equipment and machinery costs when used 90%+ for R&D activities. This includes testing equipment, development servers, specialized sensors, and prototyping hardware.  

Public Company Eligibility: Canadian public companies will be able to access the enhanced 35% refundable rate, removing a major barrier for scaling mobility firms.  

Higher Phase-Out Thresholds: The taxable capital limits are pitched to increase from $10M-$50M to $15M-$75M, allowing larger companies to maintain program eligibility longer.  

As Carlos noted during the webinar: "Your sector is R&D-intensive by nature. Whether you're developing autonomous vehicle technology, smart traffic management systems, or mobility-as-a-service platforms, you're likely doing work that qualifies for SR&ED; and soon there could be more money available than ever before." 

The Mobility Advantage: Why Transportation Companies Are Well-Positioned

During our discussion, we identified six key technology areas where mobility companies consistently demonstrate the scientific and technological uncertainty that qualifies for SR&ED:

  • Autonomous vehicle technology
  • Smart traffic management systems
  • Electric vehicle infrastructure
  • Mobility-as-a-service platforms
  • Advanced driver assistance systems
  • Connected vehicle solutions

The webinar revealed that mobility companies often underestimate their SR&ED eligibility, focusing too narrowly on whether their work feels “research-y” enough. Mat Rutishauser emphasized the key test:

“Ask yourself: Could an expert in your field have achieved this result through routine application of existing knowledge? If the answer is no, you likely have SR&ED.”

Real-World Mobility R&D Examples  

Our attendees represented diverse mobility innovations, from waste heat recovery systems for commercial trucks to portable EV charging solutions. Through interactive polling, we discovered that most participants were already incurring SR&ED-eligible expenditures across three categories:  

Personnel Costs: Engineers developing optimization algorithms, data scientists creating predictive models, developers building real-time processing systems  

Equipment & Materials: Testing infrastructure, specialized sensors, cloud computing resources for R&D activities  

Third-Party Services: Custom algorithm development, specialized consulting, integration services for novel applications 

Documentation Strategies That Maximize Returns  

One of the webinar's most practical segments focused on documentation, which is the critical factor that determines claim success. Carlos outlined a framework that resonates particularly well with mobility companies:  

Technical Documentation Essentials  

  • Hypotheses and approaches: Document what you thought would work and why  
  • Test plans and protocols: Show systematic investigation rather than trial-and-error  
  • Results and analysis: Capture what worked, what didn't, and key learnings  
  • Iterations and refinements: Track how your approach evolved  

Mobility-Specific Tips  

For Hardware Development: Document design iterations, maintain testing protocols, track performance metrics against improvement goals  

For Software/Algorithm Development: Use meaningful version control, benchmark performance results, document A/B testing outcomes  

For System Integration: Specify interface challenges, document compatibility solutions, track scalability optimization efforts  

Mat shared a crucial insight: "Think in projects, not products. You might have multiple SR&ED projects within one product. Start documenting from day one; don't reconstruct later." 

Avoiding Common Pitfalls  

The interactive Q&A session revealed several misconceptions that mobility companies should avoid:  

Misconception #1: "We're just building an app"   

Reality: If you're solving complex algorithms or creating new interaction methods, it may qualify  

Misconception #2: "We're using existing technology"   

Reality: Combining technologies in new ways or optimizing for specific applications can be SR&ED  

Misconception #3: "It's too applied to be research"   

Reality: Experimental development specifically covers practical applications 

Maximizing Your 2025 Strategy  

Based on webinar discussions, here's an action plan for mobility companies:  

Immediate Actions  

  • Project Inventory: Assess current work using the SR&ED lens  
  • Documentation Systems: Implement systematic tracking if not already in place  
  • 2025 Planning: Review strategy to maximize the new $4.5M limit and capital eligibility  

For First-Time Claimants  

  • Start with a comprehensive R&D work inventory  
  • Implement proper time tracking systems  
  • Consider professional consultation for eligibility assessment  

For Existing Claimants  

  • Review processes against 2025 updates  
  • Assess capital expenditure opportunities  
  • Ensure capture of all eligible activities 

The Broader Impact: SR&ED as Growth Strategy  

Perhaps the most compelling insight from our webinar was reframing SR&ED from a tax consideration to a growth enabler. As one attendee noted, SR&ED funding can extend runway, accelerate development timelines, and enable projects that might otherwise be financially unfeasible.  

The documentation habits required for SR&ED also provide secondary benefits: Better progress tracking, clearer communication with investors, and systematic approaches to innovation that strengthen overall R&D practices.  

Key Takeaways for Mobility Innovators  

  1. 2025 presents unprecedented SR&ED opportunities with expanded limits and restored capital eligibility  
  2. Mobility companies are naturally well-positioned due to the sector's R&D-intensive nature  
  3. Systematic documentation from day one is crucial for maximizing returns  
  4. Technical uncertainty, not business innovation, is the key qualification test  
  5. Professional guidance can significantly impact both returns and audit protection 

Ready to Explore Your SR&ED Potential?  

The mobility sector's rapid evolution creates ongoing opportunities for companies pushing technological boundaries. Whether you're developing next-generation autonomous systems, optimizing electric vehicle infrastructure, or creating integrated mobility platforms, your innovation work likely qualifies for substantial government support.  

Access the full webinar recording to hear detailed discussions on mobility-specific SR&ED strategies, documentation best practices, and the expanded opportunities available in 2025.  

For companies interested in exploring their SR&ED potential, Boast offers free eligibility assessments specifically tailored to mobility and transportation technologies. Our team understands the unique challenges and opportunities in your sector, helping you maximize returns while ensuring full compliance.  

Contact Carlos Coelho at ccoelho@boast.ai to schedule your free SR&ED assessment. 

 

Special thanks to SmartTO for partnering with us on this educational initiative and to all webinar participants for their engaging questions and insights. 

About Boast: Boast helps innovative companies maximize their R&D tax credits and government funding. With over $600 million secured for North American businesses, our technology-enabled approach combines deep expertise with automated processes to ensure maximum returns with minimal effort from your team. 

About SmartTO: SmartTO is York Region's transportation technology hub, fostering innovation in mobility solutions and connecting startups with the resources they need to scale.