SR&ED – Scientific Research & Experimental Development Tax Credits

Turn Innovation into Refunds

The SR&ED (Scientific Research & Experimental Development) program is Canada’s largest federal tax incentive for innovation. It rewards corporations that push boundaries in science, technology, or engineering by offering substantial cash refunds or tax credits on eligible R&D expenses.

Who Qualifies for SR&ED?

You don’t need a lab coat or a research department to qualify. If your business is solving technical problems, building new systems, or improving existing products or processes, you may be eligible for SR&ED.

To Qualify, Your Project Must Involve:

  • Technological Uncertainty: You faced challenges that couldn’t be solved by standard practices.
  • Technological Advancement: You developed or improved knowledge, processes, or materials.
  • Systematic Investigation: You followed a structured, documented approach to testing and learning.

How the SR&ED Claim Process Works

Claims are submitted with your corporate tax return and can be calculated based on actual expenses or via the proxy method (a simplified approach using a standard overhead percentage). Once approved, you can receive both federal and provincial SR&ED tax credits—often as a cash refund even if you paid little or no tax.

The process may look simple on paper, but success depends on detailed documentation and a clear technical narrative. That’s where our SR&ED team steps in.

If the CRA Reviews Your Claim

The CRA may assign a scientific or financial auditor to evaluate your project, documentation, prototypes, and expense records. Their goal is to confirm that your work meets the definition of eligible SR&ED. With Capex CPA, you’ll have a dedicated team preparing, defending, and managing that process to minimize delays and maximize results.

No Approval, No Fee

We work on a contingency basis—you pay nothing until your SR&ED claim is approved by the CRA. Our success fee is 20% of the approved tax credits. If you don’t get approved, you don’t pay. Simple and transparent.

Next Steps

  1. Send us a quick message or book a discovery call.
  2. We’ll review your projects for eligibility and identify qualifying costs.
  3. Meet your dedicated SR&ED CPA and technical writer.
  4. We’ll prepare your claim, supporting schedules, and technical report.
  5. Submit with your corporate tax return and manage CRA communications.
  6. Receive your SR&ED refund cheque once approved.

Book your free SR&ED consultation today and discover how much refund your innovation is worth.

SR&ED Tax Credit FAQs:
Expert Insights for Scientific Innovators

  • The Scientific Research & Experimental Development (SR&ED) program is a federal tax incentive that rewards Canadian businesses for developing or improving products, processes, or technologies. It provides cash refunds or tax credits for eligible R&D expenses.

  • Any Canadian-controlled private corporation (CCPC), partnership, or sole proprietorship that performs eligible research and development in Canada may qualify. Even small businesses without formal labs or engineers can be eligible if they’re solving technical problems.

  • Eligible work must involve:

    • A technological uncertainty (a problem with no known solution).

    • A technological advancement (creation of new knowledge or improvement).

    • A systematic investigation (testing, experimentation, and documentation).
      Software development, manufacturing improvements, product design, and material innovation are common examples.

  • You can claim employee salaries, contractor fees, materials, and a portion of overheads related to R&D work. Some prototype costs, testing supplies, and even cloud computing fees may also qualify.

  • Most Canadian-controlled private corporations can receive up to 35% refundable tax credits on eligible SR&ED expenses, plus additional provincial incentives.
    Larger or foreign-owned companies can still benefit through non-refundable credits.

  • Not at all. Many SR&ED claims come from software developers, manufacturers, and startups. The key is technical uncertainty, not having a lab, PhD, or white coat.

  • You can file or amend an SR&ED claim within 18 months after your corporate tax year-end.


    For example, if your fiscal year ended December 31, 2023, you have until June 30, 2025 to file.

  • The CRA may assign a technical reviewer or financial auditor to verify your claim. They’ll look at your project documentation, employee timesheets, invoices, and experimental evidence.

  • Keep project notes, design files, test results, prototypes, meeting logs, and payroll records. Anything that shows the problem, your approach, and the results helps support your claim.

  • Processing times vary. If your company is up to date with CRA filings, refunds are usually received within 60–120 days after submission.

  • You’ll receive written reasons from the CRA. We can help you request a second administrative review or appeal to the Tax Court of Canada if necessary.

    • Refundable credits: Paid out even if you owe no taxes (for eligible CCPCs).

    • Non-refundable credits: Reduce taxes payable but can’t create a refund.
      We’ll determine which applies to your company during your consultation.

  • Yes. Startups often receive cash refunds because the program is designed to support innovation, not just profitability. Even pre-revenue companies can claim SR&ED.

  • Possibly. Other grants may reduce the eligible amount but don’t automatically disqualify you. We’ll coordinate your SR&ED with IRAP, CMF, or provincial grants to avoid double-dipping.

  • We handle everything, eligibility assessment, technical report preparation, cost analysis, filing, and CRA representation.

    Our team ensures your claim is complete, defensible, and optimized for maximum refund.
    Best of all: no approval, no fee.