Maximizing Scientific Research & Experimental Development (SR&ED) Claims

Maximizing Non-Dilutive Capital Through SR&ED Tax Credits

The Scientific Research and Experimental Development (SR&ED) program is Canada's largest federal tax incentive, awarding billions annually to innovative Canadian businesses.

For eligible Canadian-Controlled Private Corporations (CCPCs), federal SR&ED investment tax credits provide up to 35% refundable cash back on eligible R&D expenditures, augmented by provincial credits.

The 3 Pillars of SR&ED Eligibility

To qualify, your R&D work must satisfy three fundamental CRA tests:

1. Scientific or Technological Uncertainty: Attempting to resolve a technological problem that cannot be solved using standard publicly available practices.
2. Scientific or Technological Advancement: Generating new technological knowledge or improving software/hardware capability.
3. Technological Content & Systematic Investigation: Conducting work through systematic testing, hypotheses, and documented experiments.

Contemporaneous Technical Documentation

The CRA routinely rejects SR&ED claims that rely on retrospective summaries. Maintain continuous technical evidence — code commit histories, test logs, design iterations, and timesheets linking developer hours directly to technological obstacles.