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Scientific Research and
Experimental Development
(SRED / SR&ED) Program

Finance your R&D efforts through the Scientific Research and Experimental Development or SRED tax credits – the largest federal program that supports R&D in Canada.

Get your application approved with the help of our funding experts.

Check If I Qualify

WHAT IS THE SR&ED PROGRAM?

The SRED or Scientific Research and Experimental Development program is a tax incentive put in place by the Canadian government to give back to the corporations that conduct research and development.

It is designed to encourage businesses of all sizes and in all sectors to undertake R&D activities that will lead to the development of new or improved products, processes, or services, or the advancement of existing ones. The program provides businesses with financial support for their R&D efforts through tax refunds or credits, which can help to offset the costs associated with conducting R&D activities.

SRED Overview

SRED is an incentive from the government claimed as investment tax credits (ITCs) on expenditures in the forms of cash refunds, deduction of taxes, or both (applied to taxes payable for particular tax years). ITCs can be used to reduce businesses’ taxes payable. The difference is when working with SRED, these ITCs can be carried on in Canada.

These tax incentives come in three forms: a reduction of taxes, an investment tax credit, or a cash refund. This program is the largest federal program that supports R&D in Canada.

The program provides tax incentives for three types of research:

BASIC
RESEARCH

Work done to advance scientific knowledge without any practical application in mind.  

Applied
research

Work done to advance scientific knowledge specifically for a practical purpose.  

experimental
development

Work done to achieve technological advancement to create new or improve existing products or processes.  

All research and development efforts must be done in Canada and by the company itself or by another party on behalf of the company such as a contractor or research institute.  

These credits end up calculated by looking at certain different factors, such as:  

  • Looking at the salaries of the people involved directly in the research and development of their innovative projects  
  • Canadian Contract Expenditures for projects performed for the corporation 
  • SRED overhead expenditures     
  • Third-party payments      

Tax credits can also differ depending on the type of corporation your company categorizes under and the amount of funding you can access.   

Taxable income is another way these tax credits are claimable. Filling out mandatory paperwork for each taxation year may be a complicated process for those that aren’t familiar with it. You need to have correct information throughout the paperwork. The CRA can flag your claim, ending with further issues left to resolve.  

Getting a knowledgeable team of SRED consultants like EVAMAX is recommended for companies applying for tax credits without wanting a complicated process.  

WHAT QUALIFIES FOR SRED? ​

It is likely that you can qualify under the said program if you are a Proprietorship, a Partnership, or a Corporation carrying on a business in Canada and conduct any of the following activities:

  • New formulations, new designs, innovations
  • Methods to make products cheaper/faster/better/durable
  • Risk, uncertainty, unproductive time or material
  • Enhancements, efficiency issues, new product development
  • Material changes, inconsistent product or quality issues
  • Reduction in labor and resources needed to make the product
  • Integration issues, new algorithms, software structures, and tools
$

How Much Benefits & Are They Refundable? 

Canadian-controlled private corporations (CCPC)

Private companies controlled by Canadian ownership can earn a refundable tax credit of up to 68% on qualified costs.

Other Corporations?

Public companies or Private companies not controlled by Canadian ownership can earn a tax credit of up to 30% of qualified costs that can be applied to reduce taxes payable.

Individuals and trusts

Public companies or Private companies not controlled by Canadian ownership can earn a tax credit of up to 30% of qualified costs that can be applied to reduce taxes payable.

Members of a partnership

Since a partnership is not a taxpayer, it cannot earn a tax credit itself on SR&ED. The members of the partnership, however, can claim tax credits. They do so by claiming SR&ED at the partnership level and then allocating the credit to the individual partners who can then claim it on their personal tax returns.

Eligible expenses covered

Costs under eligible expenses must be directly related to:

  • New formulations, new designs, innovations
  • Methods to make products cheaper/faster/better/durable
  • Risk, uncertainty, unproductive time or material

What SRED Costs Are Claimable?

  • Salary or wages of Canadian employees involved in R&D projects
  • Materials scrapped in performing R&D
  • Canadian Contract Expenditures for projects performed on behalf of the company
  • SR&ED Overhead expenditures
  • Third-party payments

What Does Not Qualify as SRED?

  • Market research or sales promotion
  • Quality control or routine testing
  • Research in the social sciences or the humanities
  • Prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas
  • Commercial production or use of a new or improved material, device or product
  • Style changes
  • Routine data collection

PROGRAM DEADLINE

18 months after the fiscal year-end, in which the SRED expenditures were incurred

Why Let EVAMAX Assist in
Your SRED Application?

We proudly claim to have a success rate of more than 96% in the last 18+ years.

Our people, processes & practices are specific to our client’s industry.

Our committed, resourceful, and expert team of engineers have a combined experience of 82 years working on the SRED Program which helps expedite the refund process.

Our diverse industry experience helps us identify why & what others are successfully claiming and you are not.

Quick turnaround time and keep time commitments.

We represent & prepare you for Revenue Canada’s technical & financial audits.

We ensure the time spent on the claim process by the client is at minimum, so they can focus on what they do best, while the EVAMAX team does what we are best at: Maximizing R&D refunds for you.

We are always on top of the latest changes in legislation that affect your industry, which is key to maximizing the claim. What could not have been claimed previously could be claimed now.

With our size and infrastructure, we cater to clients located anywhere in Canada.

We not only do SRED but also other grants (including Innovation, Commercialize Innovation, Hiring & Training, Business Expansion).

We’ve helped thousands of
Canadian businesses with their SRED claims.

We can repeat the success with you.

Schedule a Consultation Call

$3 Billion in credit.
Over 20,000 businesses.
Be one of the companies availing SRED refunds.

The SRED program is one of the most generous R&D cash refund/tax incentive programs in the world. The reward of R&D Refunds speaks for itself, as it provides more than $3 billion in tax incentives to over 20,000 claimants each year.

But, the program is more technical than financial.

This is where EVAMAX can help.

Want to learn
more about SRED?

As a business owner or entrepreneur, you understand the importance of investing in research and development to stay ahead in today’s competitive market. However, navigating the SRED claim system can be a daunting task.

Don’t get lost in the process!

If you want to fully understand SRED eligibility, documentation, and the claiming process, here is The Ultimate SRED Guide By EVAMAX.

SRED Myths vs Facts

Focus on innovation.
Let EVAMAX do the rest.

Get your idea funded. Let’s talk about innovation funding.

Increase your chance of getting approved.

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