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SR&ED Tax Credits

Small and big enterprises are encouraged to engage in research and development to produce or improve existing goods, processes, principles, procedures, or materials through the Scientific Research and Experimental Development (SR&ED) tax credit programme.


With the Scientific Research and Experimental Development (SR&ED) tax credit, Canadian businesses can get money to help lower the costs associated with performing capital expenditures that would otherwise be judged “too hazardous” to undertake otherwise.


Research and development tax credits provided to privately held Canadian firms range from 20% to 35% of qualified Research and Development costs associated with an individual initiative, project or programme. On qualified expenditures, individuals and trusts may be eligible for the Scientific Research and Experimental Tax Credit, which has an introductory rate of 15 per cent for the first year of eligibility. The tax credit must be credited against the taxes owed, and any residual credits can be reimbursed up to a maximum of 40% of the amount of the tax credit received.


Our work at Innovative Recovery Group collaborates with various scientists, computer programmers, engineers, technicians, and government-related organisations to identify and take advantage of the different funding options accessible to small and medium-sized businesses.

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How can we Help You

Explore how I can help you turn complexity into clarity. Whether it’s SR&ED, grants, or innovation strategy,
I cut through the noise, focus on what actually matters, and help you unlock real value—confidently, efficiently, and with zero fluff.

SR&ED Tax Credits

SR&ED tax credits reward bold Canadian innovators, transforming technical risk and experimentation into meaningful cash flow that fuels smarter growth and momentum.

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Grants

Grants fuel ambitious ideas by providing non-dilutive capital, helping innovative companies move faster, take risks, and turn potential into real-world impact

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Tax Recovery

Tax recovery in Canada involves identifying overpaid taxes or unclaimed credits from previous years. Professionals audit filings to ensure taxpayers receive every eligible CRA refund.

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Support Work in SR&ED – Across Industries


Support work includes activities that help your R&D succeed, even if they aren’t experimental development themselves.
These tasks are recognised under SR&ED when they directly contribute to solving technological or scientific uncertainties.
Here are the main categories with examples across multiple industries:

Engineering – Designing, building, or improving prototypes, machinery, or systems.
Examples:
Food processing: Modifying a pasteurization line to test new heating methods.
Manufacturing: Redesigning a robotic assembly line for precision parts.
Renewable energy: Adjusting a wind turbine prototype for efficiency testing.
Design – Creating technical drawings, schematics, or prototypes to guide experiments.
Examples:
Biotech: CAD models of lab equipment for enzyme testing.
Software: Interface mockups for a new AI application.
Industrial: Blueprints for automated material handling systems.

Operations Research – Optimizing workflows, production processes, or supply chains.
Examples:
Food: Streamlining bakery production to reduce waste.
Manufacturing: Optimizing workflow for faster assembly.
Renewable energy: Planning logistics for solar panel testing.

Mathematical Analysis – Using calculations, models, or simulations to solve technical problems.
Examples:
Biotech: Modeling enzyme reactions in fermentation.
Aerospace: Simulating stress on lightweight aircraft components.
Manufacturing: Predicting loads on industrial machinery.

Computer Programming – Developing software tools or simulations to support experiments.
Examples:
Food: Software to monitor temperature and humidity in drying processes.
Biotech: Programming lab robots for experiments.
Software: Testing new AI algorithms.

Data Collection – Gathering experimental, technical, or environmental data.
Examples:
Food: Measuring pH and nutrient content in new recipes.
Manufacturing: Tracking sensor data from prototype machinery.
Renewable energy: Recording wind or solar performance data.

Testing – Running experiments or trials to validate new products or processes.
Examples:
Food: Testing new packaging materials to extend shelf life.
Biotech: Trialling new drug delivery systems.
Manufacturing: Stress-testing materials for durability.

Psychological Research – Studying human factors, usability, or safety for new products.
Examples:
Food: Observing how consumers interact with new vending machines.
Software: Testing app usability with users.
Manufacturing: Ensuring operator controls are safe.

Materials Research – Developing or testing new materials for performance or sustainability.
Examples:
Food: Biodegradable packaging films.
Manufacturing: Lightweight composite materials.
Renewable energy: New battery materials for storage.

Process Improvement – Experimenting with methods to increase efficiency or reduce environmental impact.
Examples:
Food: Enzymatic methods to save water in juice extraction.
Manufacturing: Reducing energy consumption in metal finishing.
Biotech: Optimizing fermentation processes.

Quality Assurance & Validation – Ensuring prototypes or processes meet standards.
Examples:
Food: Testing consistency and safety of new recipes.
Biotech: Validating lab experiments before scaling production.
Manufacturing: Checking tolerances in precision components.

Industry-Specific R&D – Specialized research in a particular sector.
Examples:
Renewable energy: Testing solar panel efficiency in different climates.
Software: Developing AI or machine learning models.
Biotech: Experimenting with new enzyme or drug formulations.

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SR&ED tax credits reward bold Canadian innovators, transforming technical risk and experimentation into meaningful cash flow that fuels smarter growth and momentum.

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