Canada’s mining sector is in the middle of a technology transformation. From autonomous drilling systems and AI-powered ore sorting to advanced tailings management and real-time subsurface sensing, the companies pushing mining forward are doing exactly the kind of work that Canada’s SR&ED program was designed to reward.

What most mining technology companies don’t realize is how much of their everyday R&D spend is already eligible for government recovery, or how dramatically the rules have improved. The 2025 federal budget introduced the most significant SR&ED enhancements in over a decade, with changes that are especially valuable for equipment-intensive, capital-heavy operations like mining technology development. 

This guide breaks down what’s changed, what qualifies, and how Ontario-based mining tech companies can build a smarter, more complete 2026 claim.

What Is SR&ED? A Quick Primer for Mining Innovators

SR&ED — Scientific Research and Experimental Development — is Canada’s largest federal innovation incentive, distributing more than $4 billion annually to over 20,000 businesses. It’s designed for companies that face genuine technological uncertainty in the course of their work: problems you can’t solve by simply applying existing knowledge, and challenges that require experimentation to resolve.

For a qualifying Canadian-controlled private corporation (CCPC), the program provides:

  • A 35% refundable Investment Tax Credit (ITC) on eligible expenditures up to the annual expenditure limit
  • A 15% non-refundable ITC on eligible expenditures above that limit
  • A full income deduction on SR&ED-related expenditures in the year incurred

The key word for mining technology companies is “refundable” — even if your company isn’t profitable in a given year, you receive the credit as a cash payment. For capital-intensive operations investing ahead of revenue, this is a critical source of non-dilutive funding that reduces your cost of innovation without giving up equity.

The 2025-2026 SR&ED Enhancements: Why Now Is the Best Time to Claim

The federal government’s 2025 budget delivered the most meaningful SR&ED overhaul since the program was restructured in 2014. For mining technology companies, three changes matter most:

  1. The Expenditure Limit Doubled to $6 Million

Previously, CCPCs could only earn the enhanced 35% refundable rate on the first $3 million of eligible SR&ED spending. That limit has now been raised to $6 million, meaning qualifying companies can earn up to $2.1 million annually in refundable federal credits (up from $1.05 million). For a sector where R&D programs routinely involve multiple engineers, specialized equipment, and multi-year development cycles, this change substantially improves the return on innovation investment.

  1. Capital Expenditures Are Eligible Again

This is especially significant for mining technology. Before 2014, equipment and capital assets used in SR&ED activities could be included in eligible expenditures. That eligibility was removed. It’s now been reinstated for property acquired after the 2024 Fall Economic Statement; meaning specialized drilling rigs, processing equipment, sensor hardware, prototype machinery, and other capital assets used in eligible R&D work can now generate SR&ED credits again.

For mining technology developers building physical prototypes, testing novel extraction equipment, or deploying sensing systems in field environments, this change dramatically expands what can be included in a claim.

  1. Eligible Public Corporations Can Now Access the Enhanced Rate

For the first time, certain eligible Canadian public corporations (ECPCs) can access the 35% refundable credit; a rate that was previously available only to private companies. Mining technology companies that have grown to the public stage no longer have to accept a lower-tier benefit.

  1. Streamlined Administration Starting April 1, 2026

The CRA is implementing a voluntary pre-claim approval process, reducing standard review timelines from 180 days to 90 days. AI-assisted claim triage will also reduce the frequency of full technical audits for well-documented claims. For companies with large, complex SR&ED programs, the opportunity to validate eligibility before expenditures are incurred reduces risk and improves planning certainty.

These changes apply retroactively to taxation years beginning after December 15, 2024. This means most companies are already operating under the new rules for their current fiscal year.

What Qualifies: SR&ED in a Mining Technology Context

Mining technology R&D is richer in SR&ED-eligible work than most companies recognize. The program applies to any work that involves genuine technological uncertainty and requires systematic investigation to resolve; it doesn’t require a major breakthrough or a successful outcome.

Common qualifying activities for mining technology companies include:

Autonomous and Semi-Autonomous Systems

  • Developing machine learning algorithms for real-time equipment control in underground environments
  • Testing sensor fusion approaches for autonomous navigation in low-visibility, high-dust conditions
  • Overcoming challenges in reliable communication infrastructure for remote or underground autonomous systems

Process and Extraction Technology

  • Experimental development of novel ore sorting, separation, or beneficiation processes
  • Developing and testing new reagent formulations for more efficient or sustainable leaching processes
  • Designing and testing new approaches to tailings management, dewatering, or paste backfill
  • Developing advanced grinding or comminution technologies to reduce energy intensity

Sensing, Monitoring, and Data Systems

  • Developing subsurface sensing systems for real-time geological characterization
  • Addressing uncertainty in signal processing and data interpretation from novel sensor configurations
  • Creating custom machine vision systems for ore quality analysis or equipment inspection

Environmental and Sustainability Technology

  • Developing new water treatment or recirculation processes for mine sites
  • Designing and testing innovative approaches to acid rock drainage mitigation
  • Experimental work on carbon capture or emissions reduction processes specific to mining operations
  • Developing novel approaches to land remediation or mine closure

Safety and Structural Engineering

  • Developing new ground control systems or monitoring approaches for underground stability
  • Experimental testing of novel structural or support systems for underground workings
  • Developing predictive models for rockfall, seismicity, or geotechnical failure modes

Important note: Routine mineral exploration, prospecting, drilling-for-production, and commercial extraction activities do not qualify for SR&ED. However, the technology development supporting those activities — the sensing systems, the automation platforms, the data analytics, the novel processing methods — absolutely can qualify, provided they involve genuine technological uncertainty and systematic investigation.

The key eligibility test is: Were you uncertain whether the technical approach would work? Did you need to experiment to find out? If yes, you likely have an SR&ED claim.

What Expenses Can You Claim?

For each qualifying SR&ED project, eligible expenditures typically include:

  • Salaries and wages of employees directly engaged in SR&ED activities (and their direct overhead)
  • Materials consumed or transformed in the course of SR&ED work
  • Capital equipment used in SR&ED activities (now reinstated under 2025 changes)
  • Contract payments for SR&ED performed on your behalf by Canadian contractors (80% eligible)
  • Lease costs for equipment directly used in SR&ED

The documentation of how employee time is allocated between SR&ED and non-SR&ED activities is critical. Time-tracking systems that contemporaneously capture SR&ED work are strongly recommended — they create a defensible record if the CRA reviews your claim.

Common SR&ED Mistakes Mining Technology Companies Make

The complexity of SR&ED claims creates several common pitfalls that can leave significant value on the table or create audit vulnerabilities:

Underidentifying Eligible Projects

Many mining technology companies file only the projects that are most obviously “research” — missing routine engineering work, software development, process optimization, and field testing that also qualifies. A thorough eligibility review often uncovers significant additional claim value.

Inadequate Technical Documentation

The CRA’s standard for SR&ED documentation requires clear articulation of the technological uncertainty, the systematic investigation process, and the advancement achieved or attempted. Mining technology claims that simply describe what was done — rather than explaining the unknowns that had to be resolved — are more vulnerable to audit challenge.

Not Reinstating Capital Expenditures

With capital expenditures back on the eligible list effective December 2024, companies need to review recent capital projects for potential SR&ED eligibility. Field prototype deployments, novel testing equipment, and R&D-specific hardware may now generate credits that weren’t available under the old rules.

Missing the 18-Month Filing Deadline

SR&ED claims must be filed within 18 months of the fiscal year-end in which the qualifying expenditures were incurred. Missing this deadline means permanently forfeiting the credit — there is no late-filing provision.

How Boast Helps Mining Technology Companies Maximize SR&ED

Boast has helped more than 2,000 companies across Canada access over $675 million in R&D tax credits. Our approach to mining technology SR&ED combines deep technical expertise with an AI-powered platform that makes documentation systematic, defensible, and ongoing.

Where generic accounting firms treat SR&ED as one item among many, and tech-only platforms miss the subjective judgment calls that define maximum returns, Boast’s hybrid model delivers:

  • Expert technical review: Our team includes engineers and technical specialists who understand how to articulate technological uncertainty in mining technology terms that satisfy CRA standards
  • Platform-enabled documentation: Our system integrates with your existing project and financial data to build contemporaneous records throughout the year — not just at filing time
  • Capital expenditure optimization: With the 2025 reinstatement of capital eligibility, we help mining technology companies comprehensively review equipment and infrastructure investments for SR&ED qualification
  • Ontario stacking strategy: We identify OITC, ORDTC, and OBRITC opportunities alongside federal claims to maximize total recovery
  • 100% audit defense: Every Boast claim is backed by complete documentation and expert representation if the CRA reviews your file

Ready to see what your mining technology R&D is worth? Boast offers a free SR&ED assessment that identifies eligible activities, estimates your potential claim value, and outlines a documentation strategy tailored to your operations.

Frequently Asked Questions

No. Routine mineral exploration, prospecting, and production drilling are explicitly excluded from SR&ED. However, the technology you develop to improve how exploration is done — novel sensing systems, data interpretation algorithms, automated drilling guidance — can qualify if it involves genuine technological uncertainty.

Yes, significantly. Equipment specifically acquired for SR&ED work after the December 16, 2024 Fall Economic Statement is now eligible for both deduction and ITC generation. This includes prototype equipment, specialized testing infrastructure, and novel hardware deployed in experimental field conditions.

Boast works on a contingency basis — you pay only when your claim is approved and funded. There are no upfront costs to assess your eligibility or begin the claims process.

With the new CRA administrative improvements taking effect April 1, 2026, standard processing targets are 90 days for pre-approved claims. Most Boast clients receive their refunds within 1–3 months of CRA processing.

Next Steps for Mining Technology Companies

The SR&ED program has never offered more value for mining technology innovators. The 2025 enhancements — doubled expenditure limits, reinstated capital eligibility, and new public corporation access — combined with Ontario’s stackable provincial credits create an exceptional opportunity to fund the R&D that will define the next generation of mining.

Whether you’re building autonomous underground systems, developing next-generation processing technology, or creating environmental monitoring platforms, there’s a strong likelihood that a meaningful portion of your current R&D spend is already eligible for government recovery.

Boast is currently supporting mining technology companies ahead of key 2026 filing deadlines. Reach out for a no-obligation assessment of your SR&ED eligibility and a clear picture of what your innovation investment could return.