Budget 2025 doubled Canada's SR&ED enhanced credit limit to $6 million, opening access to up to $2.1 million in annual refundable tax credits for qualifying companies.

On March 5, 2026, Boast and Easly hosted a live roundtable breaking down what changed, who benefits, and how Canadian innovators can access these enhanced credits on their timeline, not the CRA's.

Missed the session? Here's what you need to know (and why you should watch the full recording).

The Big Picture: Five Major Enhancements You Need to Understand

The 2026 SR&ED changes represent Canada's largest R&D tax credit expansion in over a decade. As Carlos Coelho, Head of Sales at Boast, explained:

"These aren't just incremental tweaks. Budget 2025 introduced five fundamental changes that require companies to rethink their entire SR&ED strategy."

  1. Doubled Enhanced Credit Limit: $3M ? $6M

The change: Enhanced credit expenditure limit increased from $3 million to $6 million for taxation years beginning on or after December 16, 2024.

The impact: Qualifying CCPCs can now access up to $2.1 million in annual refundable credits, double the previous $1.05 million maximum.

Who benefits: Mid-market R&D-intensive companies, growth-stage companies with substantial qualifying expenditures, and companies planning major R&D investments.

Real-world example from the webinar: A mid-market SaaS company with $5M in annual qualifying R&D expenditures can now capture an additional $1.05M in refundable credits, which could be equivalent to 6-9 months of extended runway without dilution.

  1. Expanded Eligibility for Canadian Public Corporations

The change: Certain Canadian public corporations now qualify for the enhanced 35% refundable credit that was previously limited to CCPCs.

The impact: Eliminates the "cliff" where going public meant immediately losing enhanced credits.

Who benefits: Growth-stage companies planning IPOs or recently public corporations meeting specific criteria (listed on designated exchange, not controlled by non-residents). 

  1. Restored Capital Expenditure Eligibility

The change: Capital expenditures are back, eligible for both the deduction and the investment tax credit for property acquired after December 15, 2024.

What qualifies: Laboratory equipment, specialized testing apparatus, custom R&D equipment, dedicated infrastructure (like AI server farms) if used 90%+ for R&D.

Critical requirement: The "all or substantially all" test means 90%+ R&D usage, with robust documentation starting from purchase date.

Carlos's key insight: "Companies often ask what qualifies. The answer is straightforward: if equipment is purpose-built for R&D and you can demonstrate 90%+ usage through logs and project allocation, it qualifies. But you can't retroactively create documentation—start tracking from day one."

  1. Higher Phase-Out Thresholds: $15M-$75M

The change: Phase-out range increased from $10M-$50M to $15M-$75M taxable capital.

The impact: Companies with $30M in taxable capital that previously faced reduced credits now maintain full $6M enhanced credit access.

  1. Administrative Reforms (Launching April 1, 2026)

Three major improvements:

  • Pre-claim approval process: Submit projects before spending, get CRA validation in 90 days
  • AI-powered triage: Faster processing for low-risk claims
  • Streamlined documentation: Reduced administrative burden (but not lower quality standards)

 

The Problem Enhanced Credits Don't Solve: Cash Flow Timing

Here's the challenge: even with doubled credits, there's still a 12-18 month gap between when you spend on R&D and when you receive your refund.

As Samara Chandran, Executive Vice President of Sales at Easly, explained:

"For a company spending $500K per month on R&D, that's over $6 million in capital tied up waiting for reimbursement. You're forced to choose between funding aggressive R&D or preserving runway—and that's a false choice."

Two real scenarios from the webinar:

Scenario 1: Startup scaling from 5 to 20 engineers, burning $200K+/month in eligible costs. Won't see refund for 15+ months. Options? Raise dilutive equity or slow hiring and lose momentum.

Scenario 2: Manufacturing company making a $2M equipment purchase (now eligible under restored capital rules). Equipment vendor wants payment in 30 days. SR&ED refund arrives in 12+ months. Traditional financing? Expensive and misaligned with R&D cycles.

The Solution: SR&ED Financing Explained

SR&ED financing bridges the gap by allowing companies to access accrued credits before filing their claim.

How it works in three steps:

  1. You conduct qualifying R&D activity
  2. Your SR&ED credits accrue monthly based on spending
  3. You access that accrued value on-demand through financing, before filing

Real example: Company spending $100K/month on qualifying R&D accrues ~$210K in credits after six months (at 35% rate). They can access up to 75% of that now instead of waiting another 12 months.

How it's different from traditional loans:

  • It's your earned money, just accessed earlier (not traditional debt)
  • Secured against expected SR&ED credits, not personal guarantees
  • Flexible timing: monthly, quarterly, as-needed
  • No monthly repayments; CRA refund repays the advance directly
  • No use restrictions

The Compounding Effect: A Game-Changer for Growth

One of the most powerful insights from the webinar was how reinvesting SR&ED advances creates a compounding effect.

Samara's example: A software company plans to spend $300K on R&D each quarter.

Without SR&ED financing: Annual budget of $1.2M

With SR&ED financing + reinvestment:

  • Q1: Spend $300K, access $135K advance
  • Q2: Reinvest $135K ? spend $435K, access $195K advance
  • Q3: Reinvest $195K ? spend $495K, access $222K advance
  • Q4: Reinvest $222K ? spend $522K

Result: Annual R&D budget grows from $1.2M to over $1.7M—a 45% increase or $550K boost—just by reinvesting accessed credits.

"It's a powerful lever for ambitious companies looking to get to market faster," Samara explained.

Enhanced Credits + Strategic Financing = Maximum Impact

The 2026 enhancements make SR&ED financing dramatically more powerful:

Before: Financing against $1.05M in credits (old $3M limit)

Now: Financing against up to $2.1M in credits (new $6M limit)

Impact: Double the accessible capital for qualifying companies

As Samara put it: "For high-growth R&D companies, this is transformational. A company that previously could access $800K through SR&ED financing might now access $1.6M or more."

Real Success Stories from the Webinar

Cleantech manufacturing company:

  • Challenge: Needed $1.5M for R&D equipment; 18-month wait for refund, 60-day supplier payment terms 
  • Solution: Accessed accrued credits through Easly
  • Outcome: Purchased equipment on schedule, avoided dilutive equity round, extended runway by 8 months

AI/ML startup:

  • Challenge: Scaling team 10?35 engineers, $400K/month burn, Series A delayed
  • Solution: Quarterly SR&ED financing to bridge to funding
  • Outcome: Maintained hiring, hit milestones, raised from strength
  • CFO quote: "SR&ED financing gave us the runway to negotiate rather than capitulate"

The scale: Easly has supported 500+ companies, deployed $330M+, issued 1,500+ advances.

[Watch more case studies in the recording ?]

How Boast + Easly Work Together

The partnership solves complementary problems:

Boast: Maximizes your SR&ED credits through specialized expertise and technology, ensuring you capture every eligible dollar under the new $6M limit, optimize documentation, and maintain audit defense.

Easly: Transforms those maximized credits into predictable cash flow on your timeline, turning annual refunds into on-demand growth capital.

Together: Maximum credits, accessed on your schedule, without dilution or 18-month waits.

As Carlos noted: "It's about solving the complete problem: maximize credits AND optimize timing. It's not either/or—it's both/and."

What You Need to Do Now 

The companies benefiting most from 2026 enhancements are optimizing their approach now—in Q1 and Q2—not waiting until Q4.

Three strategic actions:

  1. Assess eligibility under the new $6M limit and identify newly qualifying capital expenditures
  2. Implement documentation practices immediately—especially for capital assets acquired after December 15, 2024
  3. Evaluate SR&ED financing for accessing credits on your timeline if you're scaling teams, purchasing equipment, or managing cash flow between rounds

Watch the Full 60-Minute Roundtable

This recap covers the highlights, but the complete webinar includes:

  • Detailed documentation requirements and best practices
  • Strategic planning frameworks for multi-year optimization
  • April 1 reform preparation guidance
  • Technical Q&A covering specific scenarios
  • Calculation examples and real-world case studies

WATCH THE FULL RECORDING

 

Take Action: Connect with Boast and Easly

Maximize your 2026 SR&ED credits:

Boast combines expertise with technology to help you capture every eligible dollar under the new $6M limit.

Schedule a Free SR&ED Assessment ?

Optimize your R&D cash flow:

Easly transforms SR&ED credits into on-demand capital on your timeline.

Explore SR&ED Financing Options ?

 

About the Speakers:

Carlos Coelho, Head of Sales, Boast – Helps Canadian companies maximize SR&ED returns. Boast has supported 2,000+ companies to access $675M+ in R&D credits with 100% audit defense.

Samara Chandran, EVP of Sales, Easly – Leads SR&ED financing efforts. Easly has helped 500+ companies access $330M+ in non-dilutive capital through 1,500+ advances.