SR&ED Tax Credits
The base Federal SR&ED tax credit rate on eligible expenditures is 15% for all corporations and proprietorships.
However, if the corporation is small/medium sized, it may be classified as a “Canadian Controlled Private Corporation” (CCPC). If this is the case, the Federal tax credit rate increases to 35% of the eligible expenditures.
In addition to the Federal SR&ED tax credits, a number of Provinces also provide Provincial tax credits provided the SR&ED activities take place in the particular Province(s). Click here to see Provincial Tax Credits
Thus, depending on the location in which the work was performed, the nature of the expenditure and the type of business conducting the SR&ED activities, the potential tax credits can range from about 22% to over 69%.