IRAP cost-shares R&D labour alongside your SR&ED claim
Up to 80% of labour while the work is underway; SR&ED refunds the rest at filing.
Amount
≤ $10M
·
Close
Rolling
Read brief →
Scientific Research and Experimental Development is Canada’s largest innovation program: up to a 35% refundable credit on eligible R&D. See if you qualify, what counts, and how a claim works.
If your company tried to solve a technical problem where the outcome wasn’t obvious — and you kept notes and tracked the hours — those costs likely qualify for SR&ED. Canadian-controlled private corporations (CCPCs) get up to 35% back as a cash refund; other corporations get a 15% non-refundable credit. Budget 2025 doubled the expenditure limit to $6M, so scaling companies can claim materially more this year.
The CRA test is technological uncertainty + systematic investigation. The activity matters more than the industry — software, manufacturing, food science and biotech all claim.
Log technical uncertainties, hypotheses and hours throughout the year — contemporaneous evidence is what survives a review.
Group the experimental work into SR&ED projects and isolate the eligible cost lines (labour, subcontractor, materials).
Submit the T661 technical narrative and cost schedules with your corporate T2 return, within 18 months of year-end.
CRA reviews and pays the refundable portion — typically within months. A first claim may trigger a first-time review.
SR&ED pairs with IRAP, provincial R&D credits and BDC capital on the same project.
Up to 80% of labour while the work is underway; SR&ED refunds the rest at filing.
Refundable OITC stacks on the federal credit for a ~35% blended rate on the new $6M base.
British Columbia adds a 10% provincial credit on eligible expenditures for BC-based CCPCs.
Finance the gap between spending on R&D and receiving your refund. Sub-12% blended rate.
$7.5K matched per 4-month internship; eligible portions count toward your SR&ED labour.
Interactive digital media credits (OIDMTC, BC IDMTC) cover product work SR&ED may not.
Any business that performs eligible R&D in Canada. Canadian-controlled private corporations (CCPCs) get the enhanced 35% refundable rate on the first $6M of qualified expenditures; other corporations, partnerships and individuals get a 15% non-refundable credit. The activity — not your industry — determines eligibility.
A CCPC can earn up to 35% on the first $6M of qualified SR&ED expenditures — a maximum refundable credit of about $2.1M per year after the Budget 2025 limit increase. Eligible costs are mainly labour, 50% of Canadian subcontractor costs, and consumed materials.
Not necessarily. Many companies file in-house, especially for clear-cut software and engineering claims. Consultants help with complex or first-time claims and CRA reviews — but typically charge 15–30% of the refund. CanaGrants helps you self-assess eligibility and assemble the contemporaneous evidence first, so you go in informed.
File the T661 with your T2 corporate return, no later than 18 months after your fiscal year-end. The CRA aims to process refundable claims within ~60 days when complete; a first-time or selected claim may take longer if reviewed.
Run a free eligibility check against your business profile — before you talk to a consultant.