What is SR&ED?
The Scientific Research and Experimental Development (SR&ED) tax credit is a federal and provincial incentive program designed to encourage innovation by supporting businesses that invest in research and development (R&D).
At the federal level, companies can receive a 15% non-refundable tax credit on eligible R&D expenditures. Canadian-controlled private corporations (CCPCs) may qualify for a 35% refundable credit on the first $4.5 million of eligible costs.
Additional refundable or non-refundable credits are also available at the provincial level—ranging from 10% in British Columbia, 8% in Ontario, and up to 20% in Alberta—making SR&ED a powerful tool for funding innovation.
How Can Fundomation Help?
In practice, SR&ED allows companies to claim upwards of 64% of their R&D expenditures in mostly refundable tax credits that add directly to the bottom line and help CCPCs fund their innovation. However, the SR&ED program includes a rigorous regulatory regime, which means claimants need to focus on eligibility criteria and substantiation of claims. This is where Fundomation comes in.
To help navigate this maze of requirements, Fudomation has developed an AI assisted methodology specifically for this purpose. We help companies, from starups to large multi-nationals everything in between win top dollar on the program. In addition to supporting our clients with claim preparation and compliance, we assist with review and help establish SR&ED tracking process.
Who’s Eligible for SR&ED?
If you’re doing research or development work in Canada, there’s a good chance you qualify for SR&ED. Whether you’re a startup, an established tech company, or even a sole proprietor, the program is open to Canadian corporations (especially Canadian Controlled Private Corporations or CCPCs), individuals or partnerships and trusts.
To be eligible, your work needs to go beyond routine development—it should aim to solve technical challenges, push the boundaries of what’s known, or improve processes, products, or technologies. Think experiments, prototypes, or testing out new ideas with a structured approach.
Eligible costs include things like salaries, materials, and even certain subcontractors—if the work is happening in Canada. If you’re unsure reach ot to our team, many companies are doing SR&ED without even realizing it or underclaiming what whay they are eligible for.