What is the Scientific Research & Experimental Development (SR&ED) program?
Scientific Research & Experimental Development (SR&ED, or commonly pronounced as ‘SHRED’) is a federal tax incentive program administered by the Canada Revenue Agency (CRA). It encourages Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) to create new or improve existing products, processes, principles, methodologies or materials. It is the largest single source of federal government support for industrial R&D.
In Alberta and British Columbia claimants can recover up to 64% of qualifying expenditures in refundable or non-refundable tax credits (this rate can be as low as 20% for some corporations).