Who Qualifies

Wondering if your organization qualifies? Confused about the type of projects that are eligible?

 

Any business operating in Canada that is involved in basic or applied research, or in developing new or improved materials, devices, products, or processes may be eligible under the SR&ED program. To qualify for the SR&ED program, work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel. A project does not have to succeed to qualify for the SR&ED tax credit. But, you only have a maximum of 18 months from the end of your fiscal year to submit a claim for SR&ED for that year. If this deadline is missed, the window of opportunity is closed.

 

Work that qualifies for SR&ED tax credits includes:

• Experimental development: this is work done to achieve technological advancement for the purpose of creating new, or improving existing materials, devices, products, or processes.

• Applied research: this is work done to advance scientific knowledge with a specific practical application in view.

• Basic research: this is work done to advance scientific knowledge without a specific practical application in view.

SR&ED can also include other work that is directly in support of the experimental development, applied research or basic research. This support work includes only the following eight specific areas:

• Engineering • Design • Operations research • Mathematical analysis

• Computer programming • Data collection • Testing • Psychological research