SR&ED Tax Credits & NRC IRAP Funding

Canada’s flagship federal R&D tax credit delivering up to 35% cash refunds on qualifying innovation, paired with NRC IRAP wage co-funding.

Maximum Funding

35% Federal SR&ED Refundable Credit + Up to 80% Salary Coverage (IRAP)

35% Match Rate

Assessor Audit Rule

Standard Invoicing

Direct proof of EFT payment

Eligibility Limits

< 500 Staff

< 120 mo trading

Review & Speed

Annual Corporate T2 Filing / Ongoing IRAP Advisor

Non-Repayable Grant

Scheme Overview & Underwriting Criteria

The Scientific Research and Experimental Development (SR&ED) program allows Canadian-Controlled Private Corporations (CCPCs) to earn an investment tax credit of 35% up to $3M of qualified expenditures, 100% refundable as cash for pre-profit innovators.

Approved vs. Ineligible Expenditure Schedule

Approved Costs (Assessor Will Fund)

•Salaries and wages of employees directly engaged in SR&ED projects
•Direct Canadian subcontractor expenditures for scientific research
•Materials consumed or transformed in the course of experiments
•Overhead proxy calculations associated with R&D operations

Strictly Ineligible (Instant Rejection)

•Commercial production and distribution activities
•Quality control and standard product testing
•Market research, sales promotion, and customer acquisition campaigns
•Routine software maintenance and cosmetic front-end redesigns

Required Documents & Assessor Submission Pack

Canadian-Controlled Private Corporation (CCPC) status

Form T661 submitted with the corporate T2 tax return within 18 months of FY end

Detailed project documentation demonstrating scientific/technological advancement

Common Disqualification Red Flags

Failing the 5-question test for technological advancement or uncertainty

Missing the strict 18-month statutory filing deadline (no extensions)

Foreign ownership exceeding 50% stripping CCPC refundable status

Assessor Underwriting Warning & Cashflow Timing

IRAP requires pre-approval by an Industrial Technology Advisor (ITA) before incurring R&D payroll expenses.

Startup Preflight Evaluator

Test your venture against this grant in 60 seconds

Startup Preflight cross-references your concept canvas, headcount, location, and technical work packages against SR&ED Tax Credits & NRC IRAP Funding underwriting criteria before you apply.

100% Free • No credit card required

Official Agency Resources

Official Program Portal

Need 3 quotes? Module D & E include the built-in 3-Quote Concierge to generate compliant RFPs and attach assessor-ready supplier quotes.