SR&ED Tax Credits for Canadian Businesses
SR&ED is Canada's largest R&D tax incentive, a refundable tax credit that puts cash back in your business for the research and development you're already doing.
What Is SR&ED?
SR&ED (Scientific Research and Experimental Development) is a federal tax credit, not a grant, filed alongside your corporate tax return. Canadian-Controlled Private Corporations receive it as a refundable cash payment, meaning you get money back whether or not your company is profitable, which makes it especially valuable for startups and R&D-heavy businesses alike.
Eligible costs include Canadian technical employee salaries, contractor costs, and materials used directly in genuine R&D work, developing new processes, testing new approaches, and resolving real technological uncertainty. Routine maintenance, standard operations, and work with no technical uncertainty don't qualify.
SR&ED also works differently from a typical grant in timing. Grants are applied for before a project starts, with funding flowing as the project progresses. SR&ED works in reverse, it's a reimbursement claimed after your fiscal year ends, based on the R&D work you have already completed.
How We Help
Claiming SR&ED well requires more than filling out a form. It takes a strong technical narrative, defensible time-tracking, and careful handling if the CRA asks follow-up questions. We manage the entire process for you:
- Identifying and documenting eligible R&D work as it happens
- Writing the technical narrative that gets claims approved
- Preparing and filing your claim on time, every time
- Audit defense: if your claim is selected for CRA review, we manage the entire process, documentation, meetings, and communication with the CRA, to defend your credit
- Ongoing advisory support: we work with your team throughout the year, not just at filing time, to strengthen your documentation practices and build stronger, more defensible claims year after year
Straightforward, Competitive Pricing
SR&ED is included as one of the five core services in every Full-Service Grant Management plan. Clients on a monthly plan get SR&ED support at a more competitive rate than hiring it out as a standalone service, one team, one monthly engagement, covering your entire non-dilutive funding stack.
Stack SR&ED with IRAP
SR&ED doesn't have to stand alone. When combined with IRAP funding, Canadian businesses can recover as much as 94% of eligible R&D costs, IRAP covering the bulk of the cost upfront, with SR&ED recovering a further share of what's left. We help structure both together so you get the maximum combined recovery, not just one program in isolation.
Programs we work with
Grant programs commonly covered by sr&ed tax credits engagements
Frequently asked questions
Do I need to be profitable to claim SR&ED?
No. CCPCs receive SR&ED as a refundable credit, meaning you get cash back regardless of profitability.
Is SR&ED applied for before or after the work is done?
After. Unlike a grant, where you apply before a project starts and get paid as it progresses, SR&ED is a reimbursement claimed after your fiscal year ends, based on eligible R&D work you've already completed.
Is SR&ED a grant or a tax credit?
A tax credit. It's filed with your corporate tax return rather than applied for like a grant, and it can be claimed alongside other grants and subsidies.
What kind of work actually qualifies for SR&ED?
Genuine R&D: developing new processes, testing new approaches, and working through real technological uncertainty. Routine maintenance, standard operations, and work with no technical uncertainty don't qualify. Eligible costs can include technical employee salaries, contractor costs, and materials used directly in R&D work.
Can I claim SR&ED alongside other funding, like IRAP?
Yes. In fact, stacking SR&ED with IRAP is one of the most effective ways to maximize your total recovery. We handle the structuring so both claims work together rather than against each other.
What happens if my SR&ED claim is selected for a CRA review?
We manage the entire process on your behalf, gathering documentation, attending meetings, and communicating directly with CRA staff to defend your claim.
What does Impact Applications handle as part of this service?
Everything: identifying eligible work, writing your technical narrative, preparing and filing your claim, and managing any CRA follow-up, so your team isn't managing this alongside running the business.
Talk to Impact Applications about sr&ed tax credits
Free eligibility assessment. No obligation. Typical response within one business day.