Tax incentiveEquity-free Canada
Scientific Research and Experimental Development (SR&ED)
Canada Revenue Agency (CRA)
Apply / official page ↗Typical funding
Refunds can reach about 15% of qualifying R&D expenses for many businesses, with higher effective rates for some SMEs.
Maximum
No fixed maximum; constrained by qualifying expenditure and programme rules.
Startup stage
Any stage conducting eligible R&D, from early‑stage tech startups to established firms.
Sector focus
All sectors performing systematic experimental development or applied research.
Overview
Refundable and non‑refundable tax credits that reimburse a portion of eligible R&D expenditure for Canadian businesses.
Who's eligible
Canadian businesses performing eligible R&D, filing detailed SR&ED claims as part of annual tax returns.
How to apply
Identify eligible R&D activities and costs, then file SR&ED schedules with corporate tax returns via CRA systems.
Good to know
Not a grant but often the single largest non‑dilutive funding source for R&D‑heavy startups when combined with other grants.