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Can ITC's earned for SR&ED be carried either back or forward?

Yes, SR&ED Investment Tax Credits can be carried both back and forward. The carry-forward period was extended in the 2006 federal budget:

  • ITC's earned in taxation years ending before January 1, 2006 can be carried back up to 3 years and be carried forward 10 years.
  • ITC's earned in taxation years ending after December 31, 2005 can be carried back up to 3 years and be carried forward 20 years.