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View complete bundle Funding ScenarioQuebec, Canada
How a Montreal FinTech Startup Recovered $150,000 in SR&ED Tax Credits for Software R&D
Leveraging Canada's Largest R&D Incentive Program to Fund Core Algorithm Development
Research review: AshwaniVerified
FSI Digital Funding Research • Reviewed June 9, 2026Modeling Disclaimer: This is an illustrative funding analysis modeling standard CRA SR&ED T661 eligibility criteria, Quebec RD&I credit parameters, and NRC IRAP wage subsidy guidelines for Montreal-based software startups. Outcomes depend on program availability, timing of applications, and compliance documentation.
$150,000Tax Credits RecoveredFederal + provincial R&D refunds
$280,000Qualifying SalariesSR&ED-eligible expenditures filed
47% ReducedEffective R&D CostNet engineering cost after credits
Stacked Programs In This Model
✓ SR&ED Federal Tax Credit (35% Refundable)✓ Quebec R&D Tax Credit (RD&I)✓ NRC IRAP Financial Assistance
1. Business Profile & Challenge
A 14-person Montreal FinTech startup spent $320,000 over 18 months developing a proprietary transaction fraud detection algorithm using reinforcement learning. The founders were unaware that the majority of their core engineering salaries qualified as SR&ED-eligible expenditures, and filed their first two fiscal years without claiming any scientific research credits.
2. The Strategic Roadmap
A retroactive SR&ED filing strategy — permitted up to 18 months after fiscal year-end — was mapped out to recover federal and provincial R&D tax credits on already-incurred qualifying expenses, combined with a forward-looking IRAP contribution to fund the next development milestone.
3. Implementation & Outcomes
A retroactive T661 SR&ED filing identified $280,000 in qualifying salary and contractor expenditures. At the CCPC 35% refundable rate, this generated a $98,000 federal refund. The Quebec RD&I provincial credit added a further $28,000 refund. A forward-looking NRC IRAP contribution of $24,000 funded two months of additional algorithm validation. Combined recovery: $150,000 in cash refunds and co-funding.
TIMELINE TO FUNDING MATCH: 4 MONTHS FROM RETROACTIVE SR&ED DOCUMENTATION TO CRA REFUND DEPOSITED.
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Funding Eligibility Estimator
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Advisory Disclaimer
Calculations provided by the estimator tool are automated estimates. FSI Digital does not represent government agencies. Stacking combinations must comply with anti-double-dipping regulations.