About SR&ED

The Canadian Government supports and incentivizes business that invest in and develop technological advancement, scientific knowledge and related research via the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program. This program provides R&D refunds for expenses incurred through research and experimentation.

Canada Revenue Agency defines work qualifying for SR&ED tax credits as follows:

“To qualify for the SR&ED program, work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.

Work qualifying for SR&ED tax credits includes:

  • Experimental development to achieve technological advancement to create new materials, devices, products or processes, or to improve existing ones.
  • Applied research to advance scientific knowledge with a specific practical application in view.

  • Basic research to advance scientific knowledge without a specific practical application in view;  and

  • Support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing or psychological research, but only if the work is commensurate with and directly supports the eligible experimental development or applied or basic research.

For a complete overview of the scope of the Canadian Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, please follow the link to the Canada Revenue Agency website.

Learn more about SR&ED on CRA website

Industrial Research Assistance Program (IRAP) Tech Funding

This program has two types of grants available for Canadian businesses. They include:

  • IRAP ARP: When internal technical challenges are solved, such as product or technology improvements, grants are given to projects that span 1 year or less at a maximum of $50,000.
  • IRAP Mid-Size: The projects that are eligible for this grant are usually continued from a successful IRAP ARP project. Coverage can reach 65-80% of your expenses.

Sustainable Development Technology Canada (SDTC)

These grants are offered to late-stage development or pre-commercialization strategies for technological innovations that benefit the environment. If your project is geared at helping mitigate environmental concerns, such as clean air, potable water, and climate change, a SR&ED consultant may be able to help you file and prepare a successful claim, so you can continue your research, or keep developing innovations that respond to these issues.

R&D Project Hiring Grants Program

These grants maximize the potential for industry-specific academic research partnerships concerning technological innovations, and include:

  • R&D Project Hiring Grants Internship Program: Working with a college or university student, post-grad, or Master’s grad through an internship can provide coverage for up to 50% of expenses per internship.
  • R&D Project Hiring Grants Fellowship Program: Working with a PhD grad or post-doctoral fellow for a 12 month period can provide up to $35,000 in grants per fellowship, and up to $70,000 in total funding of your project.

National Sciences and Engineering Research Council (NSERC)

This grant leverage is split into two categories:

  • NSERC Engage: Grants for short-term projects completed within 4-6 months are provided with up to $25,000 of coverage per academic researcher.
  • NSERC Collaborative Research and Development (CRD): Grants for long-term projects that usually follow NSERC Engage projects can provide up to $200,000 a year for 5 consecutive years.

Mitacs Research Grants for Canadian Small Businesses

  • A small business that hires a PhD student can access up to $30,000 of coverage for labour costs for 2 years.

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