What provincial incentives are available?
In addition to the Federal SR&ED tax credits, most Canadian provinces and territories offer their own SR&ED credits. The scientific and technological requirements for these credits are identical to the Federal program - a single technical review is conducted by the CRA for both Federal and Provincial credits. Once the claim has passed the Federal review, the province or territory is generally only concerned that the work was performed in their jurisdiction, and for certain provinces and territories, that the corporation meets the required expenditure or income limits.
The Provincial and Territorial SR&ED credits available to qualified Canadian Controlled Private Corporations (CCPC) are summarized in the table below, along with their effect on the Federal Credit, and the resulting combined credits available. Note: the federal tax credit is reduced by the provincial/territorial tax credits receivable, but the combined total is always greater than if only the federal tax credit were claimed. For further information see How does government funding received for a project affect my SR&ED claim?
More information about eligibility, credits for non-CCPCs, and alternative or supplemental research investment programs is available by following the link for each province or territory.
|Province/ Territory||Provincial Credit||Provincial Refundable?||Federal Credit Refundable (reduced by Provincial credit)||Combined|
Note 1: Quebec structures their SR&ED tax credits differently than the other provinces and territories - for CCPCs they offer 37.5% on wages and salary only (no overhead, no materials, etc.). The 20% value used in this summary is an approximate comparable value, for comparison purposes only. Please see the Quebec - Research Investment Programs page for the exact details of the credits they offer.