SR&ED from Coast to Coast
Federal SR&ED Tax Credits
Through the Scientific Research and Experimental Development (SR&ED) tax credit, qualified Canadian-Controlled Private Corporations (CCPCs) can receive a refund of up to 35% on eligible expenditures incurred in the development of new or improved products or processes. Foreign owned or public corporations can qualify for a 15% tax credit on eligible expenditures. Additional provincial tax credits are available to qualifying companies that operate in conjunction with the SR&ED program.
- Eligible Costs: SR&ED expenditures, including wages, subcontracts, materials, and overhead costs;
- Criteria: Companies performing SR&ED in a permanent establishment in the province during the year.
Select Provincial SR&ED Tax Credit Amounts
| Province | Credit Value | Filing Due |
|---|---|---|
| Alberta (AB) | 10% refundable (up to $4 million in eligible expenses) | 15 months after year end |
| British Columbia (BC) | 10% refundable for CCPCs up to 10% of expenditure limit ($3 million); non-refundable for non-CCPCs |
18 months after year end |
| New Brunswick (NB) | 15% refundable (projects after 2003); 10% nonrefundable (before 2003) |
Not Applicable |
| Newfoundland and Labrador (NL) | 15% refundable | 12 months after year end |
| Nova Scotia (NS) | 15% refundable | 18 months after year end |
| Prince Edward Island (PEI) | There is not currently a provincial program for Prince Edward Island; however, companies in this province may still receive the federal credit. |
Please note that companies in Manitoba, Ontario, Saskatchewan, the Yukon, and Québec may be eligible for provincial/territorial SR&ED tax credits. The federal SR&ED tax credit is also available to all companies conducting SR&ED-eligible activities in Canada, including those in the Northwest Territories and Nunavut. For more details on provincial/territorial tax credits or for additional information about SR&ED tax credit eligibility, please contact us!
