WHAT EXACTLY IS SR&ED?

This tax credit programme for scientific research and experimental development (SR&ED) is intended to encourage businesses, particularly SMEs and start-ups, to conduct R&D that results in the development of new, improved, or technologically advanced products; processes; devices and materials; and materials that are more environmentally friendly.

To distinguish between eligible development and routine engineering and systematic development, the term "scientific research and experimental development" (SR&ED) was introduced as a new title in Section 2900 of the Income Tax Regulations in 1986. The term SR&ED is an abbreviation for scientific research and experimental development.

The Scientific Research and Experimental Development (SR&ED) Program provides tax breaks to encourage Canadian firms of all sizes and industries to perform research and development (R & D) in the country's scientific and technological fields. Corporations, individuals, trusts, and members of partnerships are all eligible to take advantage of these Government of Canada tax breaks.