Scientific Research and Experimental Development (SR&ED) is a tax incentive program administrated by Canada Revenue Agency and designed to encourage innovation in Canadian manufacturing. The aim of the program is to foster experimentation and technological advancement for the benefit of the Canadian economy.

SR&ED is the most generous program of its kind in the world which is rewarding companies that strive to develop new materials, products, devices and processes or simply enhance, modify and improve existing materials, products, devices or processes.

Unfortunately, it is a general misconception throughout our industry, and initially with a vast majority of our clients, that SR&ED has to occur in dedicated research facilities or a lab setting. However, this is not the case. Through the SR&ED program, common everyday activities on the shop floor or in an industrial setting are eligible. It is also important to emphasise that work does not have to represent a ‘breakthrough’ in our industry. Small incremental steps of improvements and advancement of product, process, and device are sufficient.

The eligible SR&ED work only has to be new to your company. Similar or more advanced product and/or process may already exist in the marketplace. As long as you encountered technological challenges that could not be readily resolved using knowledge available in the public domain, and you tried to resolve these challenges in a systematic approach, then you are eligible for the SR&ED tax credit.

The commercial or technological success of your product and/or process is not a determining factor in assessing the viability of your claim. Failed or postponed projects still qualify for the SR&ED tax credit. The technological advancement in unsuccessful projects lies in “lessons learned” and in-house expertise accumulated in the course of your systematic investigation.

You can learn more about the SR&ED tax credit program by visiting the CRA web site ( You can also call us now for a free on-site evaluation of your projects eligibility. One of our specialists will quickly get back to you to set an appointment for a visit of your facilities at your earliest convenience.