Provincial and Territorial Research Development (R&D) Tax Credits
Learn more about what the R&D tax credits have to offer in your province or territory.
SR&ED is a federal program; however, each province has its own tax credit that is based on the federal program. For a detailed explanation of a specific provincial or territorial tax credit, see table below.
| Jurisdiction | Type | Administered By | Rate | Schedule Number |
|---|---|---|---|---|
| Newfoundland and Labrador | Refundable | CRA | 15% | NL Schedule 301 |
| Nova Scotia | Refundable | CRA | 15% | NS Schedule 340 |
| New Brunswick | *Refundable1 | CRA | 15% | NB Schedule 360 |
| Ontario (OITC) | *Refundable2 | CRA | 8% max. ITC $240,000 unless PUC is $25 million | ON Schedule 566 |
| Ontario (OITC) | *Refundable3 | CRA | 20% max. ITC $4 million | ON Schedule 568 |
| Ontario (ORDTC) | Non-Refundable | CRA | 3.5% | ON Schedule 508 |
| Manitoba | *Refundable & Non-refundable4 | CRA | 3.5% | MB Schedule 380 |
| Alberta | Refundable5 | CRA | 10% for max. ITC $400,000 for expenditures incurred before January 1, 2020. 8% or an enhanced rate6 of 20% for expenditures incurred after December 31, 2020. | AB Schedule 9 (for activities before January 1, 2020) AB Schedule 29 (for activities after December 31, 2020) |
| British Columbia | *Refundable7 | CRA | 10% for max. ITC $300,000 Non-refundable ITC for expenditures over limit | BC Schedule 425 |
| Yukon | *Refundable8 | CRA | 15% Additional 5% if paid to Yukon College | YT Schedule 442 |
| Quebec | *Refundable | Revenu Quebec | 30% for small corporations, which gradually reduces to 14% for larger corporations. | RD-1029.7 |
1. If prior year taxable income exceeds $800,000, OITC is not claimable.
2. Available only to Corporations and corporations that are members of partnerships that work with eligible research institutes (ERIs: Universities, Colleges, Hospital Research Institutes, Other Organizations).
3. 50% of the total tax credits earned are refundable and the other 50% is non-refundable. The credit is fully refundable for eligible expenditures after 2009 for corporations that work with eligible institutes in Manitoba.
4. Refundable until an expenditure limit of $1M. Any expenditures exceeding the expenditure limit will earn a 10% non-refundable credit. Refundable only for CCPC, otherwise non-refundable.
5. The Alberta R&D Tax Credit phased out after December 31, 2019. A program called the Innovation Employment Grant was opened to replace the Alberta R&D credit and covers activities that occur after December 31, 2020. This grant is claimable by completing Schedule 29 and follows the same eligibility criteria as the SR&ED program.
6. Enhanced rate of 20% is available for R&D spending that exceeds the corporations base spending level. Base spending level determined by calculating the corporations average qualified R&D expenditures in the previous two years.
7. Refundable only for CCPC, otherwise non-refundable.
8. Many specific rules. Quebec Canadian-controlled corporations with less than $50 million in assets (small corporations), on an associated basis, can claim the 30% rate on up to the spending limit of $3 million of R&D wages, on an associated basis. For those with assets between $50 million and $75 million (large corporations), the 30% rate is gradually reduced to 14%. The rate is 14% for all other taxpayers.
Expenses must be greater than $50k for smaller corporations and $225k for larger corporations.
9. In Newfoundland and Labrador, Quebec and the Yukon, individuals can also claim the provincial credits. Credits can be fully claimed against a taxpayer’s provincial or territorial income tax.
10. For Nova Scotia, New Brunswick, OBRTIC, Manitoba, Saskatchewan and British Columbia, corporations that are members of a partnership also have availability to the provincial tax credit.
Learn More About SR&ED
