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SR&ED Tax Credit

Scientific Research & Experimental Development

Up to 35% Back

Canada's longest-running R&D incentive program. Claim a refundable tax credit on eligible R&D expenditures including software development, AI research, and experimental development.

Recommended: Work With a SR&ED Specialist

SR&ED claims require detailed technical documentation. We strongly recommend partnering with a certified SR&ED consultant. Our invoices for AI/software development can serve as eligible expenditure documentation.

🆕 2026 Enhancements

  • • Expenditure limit doubled to $6M (from $3M) — up to $2.1M refundable credit
  • • Capital expenditures eligible again (equipment ≥90% for SR&ED)
  • • New pre-claim approval process starting April 2026 — 90-day fast-track
  • • Phase-out thresholds raised: taxable capital now $15M–$75M

What Qualifies as R&D

Custom AI/ML Development
Novel algorithms, model training, NLP systems with technical uncertainty
✓ Qualifies
Experimental Software Development
Solving technical challenges without known solutions
✓ Qualifies
Standard Website Development
Routine coding, template-based sites, known-solution implementations
✗ Not eligible

How to Claim (Step-by-Step)

1

Identify Eligible Projects

Review your R&D activities with a SR&ED consultant. Custom AI application development with technical uncertainty typically qualifies.

2

Document Technical Work

Maintain detailed records of technical challenges, hypotheses tested, and results — throughout the project, not after.

3

File T661 Form

Submit your SR&ED claim with your annual tax return using CRA Form T661. Include our invoices as eligible subcontractor expenditures.

4

Receive Tax Credit

CRA processes the claim and issues a refundable tax credit of up to 35% for CCPCs (15% for others) on eligible R&D expenses.

Have an AI R&D Project?

If you're developing innovative AI solutions, our services may qualify as SR&ED-eligible subcontractor costs.

Discuss Your R&D Project
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