Scientific Research and Experimental Development (SR&ED)
Official funding support offered by the Canada Revenue Agency (CRA). Offset costs with up to Up to 64% of R&D salaries refunded.
How does a business qualify for the SRED TAX CREDIT?
To qualify for the Scientific Research and Experimental Development (SR&ED), a business must be incorporated in Canada and demonstrate active operations. The program offers up to Up to 64% of R&D salaries refunded in non-dilutive capital, which is categorized under a Moderate funding difficulty level. Applicants must ensure they meet all technical benchmarks and file using official channels before funds are fully allocated for the fiscal period.
Typical Applicant Profile: Technology & R&D Funding (IRAP/SR&ED)
Key Qualifiers
- •Active internal software, hardware, or biotech engineering team
- •Solving novel technical uncertainties (not simple API integrations)
- •Clear commercialization & market growth roadmap
Rejection Risk Factors
- •Pure service/consulting business models
- •Contract R&D performed for other clients
- •No proprietary intellectual property
How Does Your Business Compare?
Applications are evaluated against detailed technical and commercial criteria. Many applicants discover eligibility issues only after beginning the application process. Estimate your Funding Match Score (e.g. 82/100) based on your team, location, and development activities.
- •Updated April 2026: CRA issued new guidelines emphasizing contemporaneous developer log compliance during technical reviews.
Canada's largest tax incentive for businesses conducting scientific research or experimental development. Provides a fully refundable investment tax credit (ITC) for eligible R&D expenditures.
Key Features
| Funding Limit | Up to 64% of R&D salaries refunded |
| Program Agency | Canada Revenue Agency (CRA) |
| Funding Type | Tax Credit |
| Jurisdiction | Canada Federal |
Deadlines & Difficulty
| Difficulty | Moderate Match |
| Deadline Status | Rolling Intake |
| Official Portal | Visit Official Site |
💡 Expert Insider Tips
- •Do not wait until tax season to document. CRA auditors heavily look for contemporaneous logs, JIRA tickets, and test records.
- •Routine software coding using standard React/Node libraries without architectural challenge is a frequent reject reason.
Estimate your potential T4 salary refunds in real-time:
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Related Resources & Guides
SR&ED Application & Documentation Guide
Playbook for tracking software development hours and claiming CRA R&D credits.
Industrial Research Assistance Program (IRAP)
Stack direct wage grants alongside your year-end SR&ED R&D tax tax credits.
Regional Directories & Industry Guides
Determine Your Funding Match Probability
Our pre-qualification review analyzes program requirements, stacking possibilities, and alignment to minimize filing rejections.
Comparison Guides
Compare Scientific Research and Experimental Development (SR&ED) against other active programs:
Local Business Guides
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Official Program Alignment
FSI Digital reviews eligibility standards in accordance with official guidelines. We never guarantee funding; all approvals are subject to official government program review.
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