This program is designed to encourage Canadian industries of all sizes and in all sectors to invest time and money to develop or improve products or processes, or to do pure and applied research.
Essentially, eligible research and development projects must target the development or improvement of new products or processes, make a significant contribution to eligible basic or applied research, or contribute to the advancement of scientific knowledge.
The SR&ED tax credit program is the federal government’s largest source of financial support for research and development, with billions of dollars paid annually.
The Canada Revenue Agency (CRA) is responsible for the administration of the program, the scientific admissibility of the projects submitted, and the federal payouts.
The provinces also offer individual programs encouraging businesses to invest in research and development in their territory. Provinces are responsible for determining the rate of credit they grant and the type of eligible expenditures that they recognize as SR&ED.
Note: The information in this section (SR&ED Program) is mainly taken from the CRA website and is provided for informational purposes only.