What is the SR&ED program?
The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. The SR&ED program is the largest single source of federal government support for industrial research and development.
Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts.
The Canada Revenue Agency (CRA) is responsible for administering the SR&ED program, while the Department of Finance is responsible for the legislation that governs it.
More information about the program including the forms required to apply for a credit/refund, application and sector-specific guides, and information about related services provided by the CRA can be found at their SR&ED website.
The legislation governing the SR&ED program can be found in Section 37 of the Income Tax Act.