SR&ED rewards companies for scientific or technological advancement not just commercial success.
SR&ED encourages Canadian businesses of all sizes to perform R&D by offering:
Tax Deductions for eligible expenditures
Investment Tax Credits (ITCs)
Provincial Credits
Work aims to create or improve technology, not just cosmetic or routine improvements.
Structured testing, experimentation, and analysis — not random trial-and-error.
You must be tackling a technical problem without a known solution.
Majority of the R&D must take place domestically.
Corporations (especially CCPCs), sole proprietors, partnerships, and trusts.
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