SR&ED Tax Credit

SR&ED (Scientific Research and Experimental Development) is Canada's federal tax incentive for businesses that resolve technological uncertainty through experimentation. Qualifying companies claim it on the T2 return for refundable or non-refundable investment tax credits against eligible labour, materials and contractor costs. Canadian-controlled private corporations receive the most generous, often refundable, treatment, making SR&ED a key cash-flow tool for innovating firms.