What projects are eligible for tax credits for SR&ED?
Experimental development aimed at achieving technological advances for the purpose of creating new, or improving existing, materials, devices, products, or processes.
Applied research aimed at advancing scientific knowledge with a specific practical application in view.
Pure research allowing the advancement of scientific knowledge without necessarily endeavouring to obtain a specific practical application.
Support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, and psychological research, where such work is commensurate with the needs of eligible pure, applied research or experimental development work, and is directly in support of the eligible work.
What are the eligible expenses?
Wages and salaries
Subcontractors
Third-party payments
Materials consumed or transformed
Overhead and other expenditures
Lease costs for certain equipment
Capital expenditures
What are the non-eligible activities?
Research in social sciences and humanities
The commercial production of a new or improved material, device, or product, or the commercial use of a new or improved process
Style changes
Market research and sales promotion
Quality control or routine testing of materials, devices, products, or processes
Routine data collection
Work related to prospecting, exploring, or drilling for or producing minerals, petroleum, or natural gas
Development work which entails standard design and engineering practices
