[et_pb_section fb_built=”1″ _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_post_title meta=”off” _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_post_title][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” link_text_color=”#0C71C3″ hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
The Scientific Research and Experimental Development (SR&ED) tax credit allows Canadian businesses to recover between 15% and 35% of their eligible R&D expenditures at the federal level and additional credits at the provincial level, which vary by province. For Canadian-controlled private corporations (CCPCs), the vast majority of which are SMEs, part of the credit is refundable, even in a loss situation. <\/span><\/p>\n The program underwent changes in 2025-2026. Here’s what you need to know. <\/span><\/p>\n <\/p>\n The SR&ED program is administered by the Canada Revenue Agency (CRA). It provides a tax credit on expenditures incurred for scientific research and experimental development carried out in Canada. <\/span><\/p>\n The four-step process:<\/span><\/p>\n <\/p>\n At the federal level, the SR&ED credit remains unchanged in its structure and varies according to the type of corporation:<\/span><\/p>\n Quebec component (Revenu Qu\u00e9bec) \u2014 major change underway<\/b><\/p>\n On March 25, 2025, Quebec’s Minister of Finance announced the elimination of the provincial SR&ED credit and its replacement with a new credit: the <\/span>CRIC<\/b> (Research, Innovation and Commercialization Tax Credit).<\/span><\/p>\n Transition rules:<\/b><\/p>\n Former Quebec SR&ED credit (still claimable for qualifying periods):<\/b><\/p>\n New RCIC (replaces 4 provincial R&D credits, including provincial SR&ED):<\/b><\/p>\n <\/p>\n In the shops I visit, I regularly see the same scenario: a manufacturing SME has done experimental development \u2014 modifying a process to reduce a rejection rate, developing a new jig, testing a new alloy \u2014 without ever claiming credit. Often because no one in the company had time to document the work, or because it was judged that “it was not really R&D”. <\/span><\/p>\n With a combined federal and provincial rate of up <\/span>to 60 to 65 per cent of eligible wages<\/b> for a Quebec SME, a project costing $250,000 in engineering salaries can represent more than $150,000 in returns. Over three fiscal years that are still eligible, this is rarely negligible. <\/span><\/p>\n The September 25, 2026 window is the last opportunity to recover these amounts under the old regime, which was more predictable and better understood by advisors and Revenu Qu\u00e9bec.<\/span><\/p>\n <\/p>\n An analysis is worthwhile if you recognize your company in one or more of these situations:<\/span><\/p>\n The work does not have to be successful to be eligible. On the contrary: an unsuccessful attempt that has generated new technical knowledge is exactly what the program aims to recognize. <\/span><\/p>\n <\/p>\n The SR&ED program remains one of the most advantageous tax programs for Canadian SMEs. It is underused due to a lack of information and the (often erroneous) perception that “we don’t really do R&D”. <\/span>In 2025, Quebec’s Research, Innovation and Commercialization Tax Credit <\/span>(IRCC)<\/b> program was modified and expanded for pre-commercialization activities, largely benefiting businesses in Quebec.<\/span><\/p>\n Progr\u00e8s Conseils has been assisting manufacturing SMEs in Quebec and Ontario since 2003 in the preparation of their SR&ED claims. With the deadline of September 25, 2026 approaching, I am devoting some of my time to <\/span>Spot diagnostics<\/b> to quickly identify if a retroactive claim is possible \u2014 and if it’s worth the cost.<\/span><\/p>\n [\/et_pb_text][et_pb_accordion _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_accordion_item title=”Can I claim the SR&ED credit if I have already received a grant for the same project?” open=”on” _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Yes, but the grants received reduce the eligible expenditure base. For example, if you received $50,000 in grant funding for a project, eligible expenditures must be reduced by the grant amount before calculating the SR&ED credit. <\/span><\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”Is the SR&ED credit taxable?” open=”off” _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n The SR&ED credit reduces the capital cost of the property or expenditure for which it is claimed. The credit itself is not usually added to income, but the exact tax effect depends on the tax situation of the business. Your tax advisor can explain the net impact to you. <\/span><\/p>\n [\/et_pb_accordion_item][et_pb_accordion_item title=”How long does it take for the CRA to process an SR&ED claim?” open=”off” _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n For applications submitted electronically, the processing time is generally 60 to 120 days in the absence of verification. If the CRA decides to verify the application, the delay can be extended to 6 to 18 months depending on the complexity of the file. <\/span><\/p>\n [\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The Scientific Research and Experimental Development (SR&ED) tax credit allows Canadian businesses to recover between 15% and 35% of their eligible R&D expenditures at the federal level and additional credits at the provincial level, which vary by province. For Canadian-controlled private corporations (CCPCs), the vast majority of which are SMEs, part of the credit is […]<\/p>\n","protected":false},"author":4,"featured_media":1246,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[22],"tags":[],"class_list":["post-1247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sred"],"_links":{"self":[{"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/posts\/1247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/comments?post=1247"}],"version-history":[{"count":2,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/posts\/1247\/revisions"}],"predecessor-version":[{"id":1249,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/posts\/1247\/revisions\/1249"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/media\/1246"}],"wp:attachment":[{"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/media?parent=1247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/categories?post=1247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/progres.ca\/en\/wp-json\/wp\/v2\/tags?post=1247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}1. How does the SR&ED credit work?<\/b><\/h2>\n
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2. SR&ED credit rates in 2026<\/b><\/h2>\n
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3. <\/b>Why the deadline deserves your attention<\/b><\/h2>\n
4. <\/b>How to know if your business is affected<\/b><\/h2>\n
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Conclusion<\/b><\/h2>\n