SR&ED & Government Incentives

Research and development incentives are some of the most valuable — and most under-claimed — programs available to Canadian companies. RN Canada helps Alberta and British Columbia businesses identify eligible work, document it properly and claim the federal SR&ED investment tax credit alongside Alberta's Innovation Employment Grant, so the credits you are entitled to actually reach your return.

Federal SR&ED investment tax credit

The Scientific Research and Experimental Development (SR&ED) program is the federal government's primary R&D incentive. The mechanics:

• A basic investment tax credit of 15% on qualified expenditures.
• An enhanced, refundable 35% credit for most Canadian-controlled private corporations (CCPCs) on qualified expenditures up to the expenditure limit.
• An expenditure limit of $6 million for tax years beginning after December 15, 2024 (up from $3 million).
• The enhanced limit phases out over $15 million to $75 million of prior-year taxable capital; spending above the limit earns the basic 15% rate.

To qualify, the work must be conducted in Canada and must constitute a systematic investigation seeking a scientific or technological advancement. Source: SR&ED tax incentive program — Canada.ca.

Alberta Innovation Employment Grant (IEG)

Alberta layers its own R&D incentive on top of SR&ED through the Innovation Employment Grant:

• 8% of eligible R&D spending up to a base level, and an enhanced 20% above the base.
• On up to $4 million of annual qualifying R&D.
• Phases out over $10 million to $50 million of taxable capital, and is ineligible at $50 million or more.
• Spending must be incurred in Alberta after December 31, 2020, and the program matches federal SR&ED-eligible expenditures.
• Claimed via Schedule 29 on the Alberta AT1 return.

Source: Innovation Employment Grant — Alberta.ca.

Other Alberta innovation funding

Beyond the tax-credit programs, Alberta Innovates is the province's innovation funder and offers grant and support programs for research-intensive and technology businesses. Source: Funding — Alberta Innovates. Program availability changes from time to time, so we confirm what is currently open and a fit for your work before building a claim or application around it.

What's included

• Reviewing your projects to identify SR&ED-eligible work and qualifying expenditures.
• Preparing the technical and financial components of the SR&ED claim.
• Claiming Alberta's Innovation Employment Grant on Schedule 29 of the AT1 where eligible.
• Coordinating the federal and Alberta claims so the figures reconcile.
• Flagging relevant Alberta Innovates funding and confirming current availability.

Who it's for

This service fits technology and product companies, manufacturers and any Alberta or BC business performing experimental development or applied research — particularly Canadian-controlled private corporations positioned to earn the enhanced refundable credit. It suits both first-time claimants and companies that suspect they have been leaving eligible work unclaimed.

How RN Canada helps

We identify the eligible work, document it to the standard the programs require, prepare the federal SR&ED claim and the Alberta IEG, and reconcile the two so they stand together on your return. Our founder, Ozgur Duymaz, holds a Ph.D. in accounting and finance and is a CPA (Canada), ACCA (UK) and CMA (US). To find out what your R&D could be worth in credits, talk to us or see the full services overview.

This page is general information, not personalized advice. Speak to us about your specific situation.