Does my project qualify for innovation capital?
New for 2026: Eligible Canadian public corporations can now access enhanced refundable credits. To qualify, you must be a Canadian resident, have shares listed on a designated stock exchange (or elect to be a public corporation), and not be controlled by non-residents.
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Technological Advancement: The objective is to generate or discover new knowledge that advances scientific or technological understanding. In business terms, this means you’re aiming to create something new or significantly improve what already exists, beyond current industry knowledge.
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Scientific or Technological Uncertainty: These are challenges that can’t be solved with existing methods, procedures, or knowledge. Even experienced professionals in the field can’t predict the outcome—new knowledge is needed to resolve the uncertainty.
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Systematic Investigation: Your research project must follow a structured process: document your work, identify technological uncertainties or challenges, develop hypotheses to address them, conduct tests and experiments, and draw logical conclusions from your results.
What types of work are not eligible for SR&ED?
Important Note: Simply adopting or implementing existing technology does not qualify as SR&ED. However, if you develop new processes or make experimental modifications to overcome technological uncertainties, your work may qualify.
What expenditures are eligible for SR&ED?
Salaries or wages paid to employees and owners while performing eligible R&D activities
Costs of subcontractors involved in R&D (generally 80% of costs for arm’s-length contractors)
Materials consumed or transformed during R&D
Overhead costs directly attributable to the R&D project
Capital expenditures (reinstated as of December 16, 2024): Equipment and machinery used all or substantially all (about 90% of operating time) for SR&ED in Canada, or that are almost entirely consumed in SR&ED
How do I calculate overhead costs?
What are the enhanced credit rates for 2026?
FOR CCPCS
FOR ELIGIBLE CANADIAN PUBLIC CORPORATIONS
FOR OTHER CORPORATIONS, INDIVIDUALS, PARTNERSHIPS, AND TRUSTS
These enhanced rates apply to tax years beginning on or after December 16, 2024.
What documents do I need to apply for SR&ED?
FILING DEADLINE
You must file no later than 18 months after your tax year-end.
How can I strengthen my application?
If you’re a first-time SR&ED claimant, understanding CRA’s expectations can be challenging. Here are key tips to help your claim get accepted:
Be precise and thorough
All information must be accurate and complete. Your descriptions should clearly explain the technological uncertainties you faced, the systematic approach you used, and the results you achieved.
Keep detailed records
Track all costs and vendor invoices throughout your project. Document your research steps, experimental results, hypotheses tested, and conclusions. This creates the audit trail CRA will look for.
Make SR&ED part of your daily routine
Document in real time as you design experiments, discuss progress with your team, run tests, and analyze results. Real-time documentation is much stronger than trying to reconstruct events later.
Know what’s new
Failed experiments still qualify—SR&ED recognizes that unsuccessful attempts can advance technology. You don’t need to succeed; what matters is a systematic effort to overcome uncertainty.
Get expert support
If SR&ED eligibility is complex or you want to maximize your claim, consult with specialists who understand both the technical requirements and CRA review processes.
Questions? Boast is here to help.
Contact us to speak with one of our SR&ED experts and find out if your projects qualify for non-dilutive funding. Our technology and expertise help you get more value from your R&D every day.
