What is SR&ED?
The Scientific Research & Experimental Development (SR&ED) program is a Canada Revenue Agency (CRA) initiative that supports science and technology through tax incentives for R&D conducted in Canada. Provincial governments generally participate with coordinated tax assistance as well.
Canadian science and technology companies rely on SR&ED as their largest single source of government R&D funding. The SR&ED program can rebate up to 68% of direct research labour expenditures. Still, many Canadian companies are not receiving their full entitlement of funding - CRA estimates that a significant number of companies are only claiming half of their eligible tax credits.