Administered by Government of Canada · Last verified: July 2026
Canada's largest federal innovation incentive, run by the CRA. It reimburses a share of eligible R&D salaries, materials, and contractor costs as an investment tax credit: a 35% refundable credit for qualifying Canadian-controlled private corporations and 15% for other businesses, on eligible expenditures. Claimed on federal Form T661, it has a hard 18-month filing window from fiscal year-end. Most provinces add a stackable R&D credit on top.
You claim this on your tax return, so the money comes back as a lower tax bill or a refund after you file. If you missed it in a past year, you can often still recover it by adjusting a prior return.
Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.
Check my eligibilityScientific Research and Experimental Development (SR&ED) Tax Credit is generally open to incorporated, self-employed, partnership businesses, in any province or territory, that carry out research and development. Confirm the full criteria on the official program page before applying.
The estimated value is 35% refundable for CCPCs, 15% for other businesses, on eligible R&D costs. The actual amount depends on your eligible costs, the program's budget, and approval.
SR&ED has a hard filing window of about 18 months after your fiscal year-end. Within it you can still file or amend a claim; after it, the claim is lost. Confirm your dates with your accountant.
1. Document the technical uncertainty and experimental work as the project happens 2. Identify eligible salaries, materials, and contractor costs with your accountant 3. Complete Form T661 and Schedule 31 and file them with your T2 or T1 4. File within 18 months of your fiscal year-end, the hard reporting deadline 5. Consider a SR&ED specialist for a first claim or a contested one
18 months after your fiscal year-end (hard reporting window).