SR&ED tax credit (Scientific Research and Experimental Development)
SR&ED is the federal tax incentive for scientific research and experimental development carried out in Canada. Most Canadian-controlled private corporations earn a 35% credit on qualifying spending up to the expenditure limit, now $6 million, and that credit is fully refundable on current expenditures. The basic rate for other claimants is 15%.
Start an applicationProgram facts
| Type | Tax credit |
|---|---|
| Who qualifies | Businesses doing scientific research or experimental development in Canada. The 35% rate applies to most Canadian-controlled private corporations, and, for tax years beginning after 15 December 2024, to eligible Canadian public corporations. |
| Amount or rate | 15% basic credit. 35% enhanced credit up to the expenditure limit ($6M for tax years beginning after 15 December 2024). The 35% credit is 100% refundable on current expenditures and 40% refundable on capital expenditures. |
| Intake status | Continuous intake. Claimed with the corporate tax return on Form T661. An optional pre-claim approval process opened on 1 April 2026; CRA aims to give a determination within eight weeks. |
| Run by | Canada Revenue Agency (CRA) |
| Checked on | 8 October 2026 |
| Official page | https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/sred-claim/investment-tax-credit.html |
How it pays
SR&ED is a tax credit, not a grant. The business spends the money on R&D first, then claims the credit with its tax return. A refundable credit is paid out even when the business owes no tax.
Bill C-15 (Royal Assent on 26 March 2026) changed the program for tax years beginning after 15 December 2024: the expenditure limit doubled from $3 million to $6 million, the taxable-capital phase-out moved to $15 million to $75 million, capital expenditures became eligible again for property acquired after 15 December 2024, and CCPCs gained an optional revenue-based expenditure limit.
CRA warns businesses to be wary of anyone who tries to convince them to file a claim when they are not actively doing R&D, and reminds claimants that they are legally responsible for the accuracy of their claims.
Funding your share while you wait
The gap with SR&ED is time: salaries and materials are paid through the year, and the refund arrives only after the return is filed and processed. A line of credit is the usual way to carry that, because it is drawn as costs come in and paid down when the refund lands.
Voxen assesses that line on the business's revenue and bank statements. The expected refund is not taken as security, and Voxen does not prepare SR&ED claims.
The Voxen products that fit this program. Ranges are the ones on each product page; every file is assessed on the business's revenue and bank statements.
| Financing | Range | What it covers here |
|---|---|---|
| Line of Credit | Credit Limit: $10,000 – $1,000,000 | Working capital while you wait for a reimbursement or a refund. Draw what the project needs, pay it down when the money arrives. |
| Bridge Loan | Loan Amount: $30,000 – $5,000,000 | A short loan for a defined gap, when you know where the money that repays it will come from. |
Related programs
| Program | Type | Status | Checked |
|---|---|---|---|
| CRIC tax credit | Tax credit | Open | 8 October 2026 |
| NRC IRAP | Grant (non-repayable contribution) | Continuous intake | 8 October 2026 |
| C3i tax credit | Tax credit | Open | 8 October 2026 |
- Quebec tax credit for research, innovation and commercialization (CRIC)
- NRC IRAP (Industrial Research Assistance Program)
- Investment and innovation tax credit (C3i)
- More programs for this situation: R&D and innovation tax credits
Not sure which program fits? Ask us
Tell us about the project and we will tell you which programs are worth a look and what financing could carry your share. Voxen does not prepare grant applications; if you want help with one, we can point you to specialists who do that work.
Notice
Voxen Capital is a private financing broker, not a government body. It does not decide, influence or guarantee any grant, credit or government loan, and it does not prepare grant applications. Program details change: check the official page before you apply.
Frequently asked questions
What changed in SR&ED for 2026?
Bill C-15, which received Royal Assent on 26 March 2026, doubled the expenditure limit to $6 million, raised the taxable-capital phase-out to $15 million to $75 million, restored capital expenditures for property acquired after 15 December 2024, and added an optional revenue-based limit for CCPCs. These apply to tax years beginning after 15 December 2024.
Is the SR&ED credit refundable?
For most CCPCs, the 35% credit is fully refundable on current expenditures and 40% refundable on capital expenditures.
Can I get a decision before I claim?
Yes. CRA opened an optional pre-claim approval process on 1 April 2026 and aims to give a determination within eight weeks.
My business does not do R&D. Should I claim SR&ED?
No. CRA specifically warns businesses about people who push claims on companies that are not actively doing R&D work. The claimant is legally responsible for what the claim says.