Scientific Research and Experimental Development (SR&ED) Tax Incentive Program: Who Qualifies and What You Get
Learn how Canadian businesses can claim tax credits or cash refunds for eligible research and experimental development expenditures.
This program provides financial support to businesses in Canada that conduct scientific research and experimental development.
Who it's for
This is for businesses performing research and development activities within Canada. This includes sectors like tech, including game studios that are developing new engine technology.
What you get
You can receive tax credits or cash refunds to help cover the costs of your eligible research and experimental development expenditures.
What it costs you
While there is no direct fee to apply, the process requires significant time and effort. You must maintain extensive documentation, including project logs and records of technical challenges. Because of the complexity, most businesses require the help of a specialized accountant to manage the claim.
The catch to know
The government is very strict about what qualifies as research. To be eligible, you must prove "technological uncertainty." This means standard work, such as basic game asset creation, does not qualify for this incentive.
How to apply
- Maintain detailed logs and documentation of all technical challenges faced during your projects.
- Ensure all expenditures meet the specific criteria for research and development.
- Work with a specialized professional to prepare your technical and financial documentation.
- Submit your claim through the official portal.