SR&ED Provincial Rates and Forms
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SR&ED Across Canada
Unlike the federal Scientific Research and Experimental Development (SR&ED) tax credit rate which has stayed fairly consistent at 35% (for CCPCs), the provincial tax credits have seen multiple changes over the last two decades.
Given the nature and complexity of taxation procedures, the best way to capitalize on the SR&ED program is to stay abreast of the changes in a timely fashion, so that the effects of the alterations can be accounted for while planning the following years’ business expenses and possible tax refunds. However, the CRA often makes this difficult by burying relevant information in mountains of jargon. To negate this inconvenience, we present an interactive map for our patrons and visitors – with updated information regarding the SR&ED tax credit rates in various provinces, along with qualifying details as and where required.
Provincial R&D Tax Credits
Below is a brief summary of the information presented above. Please check the relevant portion of the map, or consult the CRA website for more details, including any caps or special requirements.
| Jurisdiction | Schedule Title /Number | Description and Link to Form | Provincial SR&ED Summary | SR&ED Amount |
|---|---|---|---|---|
| Alberta | AB Sch. 9 | Scientific research & experimental development (SR&ED) tax credit | In the 2020 Provincial budget, Alberta has eliminated SR&ED Tax Credit Incentives for work after January 1, 2020. Alberta has created the Job Creation Tax Cut and eliminated many tax credits. More can be found on the Alberta Ministry of Treasury Board & Finance website. The Alberta scientific research and experimental development tax credit is administered by the Alberta Ministry of Finance and Enterprise and is refundable at the rate of 10% on up to $4 million in eligible expenditures of a qualified corporation, for a maximum credit of $400,000. Qualified corporations in Alberta who conduct SR&ED activities after December 31, 2008 and before January 1, 2020 are eligible for this tax credit. More information about claiming SR&ED in Alberta can be found on the Alberta Ministry of Treasury Board & Finance website. |
10% (after December 31, 2008 and before January 1, 2020) |
| Alberta | AB Sch. 9 | Listing of SR&ED projects claimed | In the 2020 Provincial budget, Alberta has eliminated SR&ED Tax Credit Incentives for work after January 1, 2020. Alberta has created the Job Creation Tax Cut and eliminated many tax credits. More can be found on the Alberta Ministry of Treasury Board & Finance website. The Alberta scientific research and experimental development tax credit is administered by the Alberta Ministry of Finance and Enterprise and is refundable at the rate of 10% on up to $4 million in eligible expenditures of a qualified corporation, for a maximum credit of $400,000. Qualified corporations in Alberta who conduct SR&ED activities after December 31, 2008 and before January 1, 2020 are eligible for this tax credit. More information about claiming SR&ED in Alberta can be found on the Alberta Ministry of Treasury Board & Finance website. |
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| Alberta | AB Sch. 16 | Alberta Scientific Research Expenditures | In the 2020 Provincial budget, Alberta has eliminated SR&ED Tax Credit Incentives for work after January 1, 2020. Alberta has created the Job Creation Tax Cut and eliminated many tax credits. More can be found on the Alberta Ministry of Treasury Board & Finance website. The Alberta scientific research and experimental development tax credit is administered by the Alberta Ministry of Finance and Enterprise and is refundable at the rate of 10% on up to $4 million in eligible expenditures of a qualified corporation, for a maximum credit of $400,000. Qualified corporations in Alberta who conduct SR&ED activities after December 31, 2008 and before January 1, 2020 are eligible for this tax credit. More information about claiming SR&ED in Alberta can be found on the Alberta Ministry of Treasury Board & Finance website. |
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| British Columbia | BC Sch. 425 – T666 | British Columbia (BC) Scientific Research and Experimental Development Tax Credit | The British Columbia scientific research and experimental development tax credit is administered by the Canada Revenue Agency (CRA) and is refundable for Canadian-controlled private corporation (CCPC)s up to 10% of the expenditure limit (i.e., $3m x 10% = $300,000) and non-refundable otherwise at a rate of 10% of scientific research and experimental development (SR&ED) qualified British Columbia expenditures. More information is on the British Columbia website. |
10% |
| Manitoba | MB Sch. 380 | Manitoba Research and Development Tax Credit (2017 and later tax years) | The Manitoba research and development tax credit is administered by the CRA. This credit is non-refundable at the rate of 15% on eligible expenditures made after April 11, 2017 under a R&D contract with a qualifying institution. It was non-refundable at the rate of 20% on qualified expenditures made before April 12, 2017 and after March 8, 2005. The credit is refundable for eligible expenditures incurred after 2009 pursuant to an R&D contract with an eligible institute in Manitoba. After April 11, 2017, the credit is 7.5% for expenditures not made with an eligible SR&ED contract with a qualifying institution in Manitoba, previously 10%. More information about claiming SR&ED in Manitoba can be found on the Manitoba business website. |
15% (After April 11, 2017) under contract with a qualifying institution. 20% (up to April 11, 2017) under contract with a qualifying institution. 7.5% (After April 11, 2017) not under contract with a qualifying institution. |
| Newfoundland and Labrador | NL Sch. 301 | Newfoundland and Labrador Research and Development Tax Credit (2004 and later taxation years) | The Newfoundland and Labrador research and development tax credit is administered by the CRA and is fully refundable at the rate of 15% of eligible expenditures. More information about claiming SR&ED in Newfoundland and Labrador can be found on the Newfoundland and Labrador Finance website. |
15% |
| New Brunswick | NB Sch. 360 | New Brunswick Research and Development Tax Credit (2011 and later tax years) | The New Brunswick research and development tax credit is administered by the CRA and is 15% Refundable on eligible expenditures incurred after December 31, 2002. More information about claiming SR&ED in New Brunswick can be found on the New Brunswick website. |
15% |
| Northwest Territories |
None. |
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| Nova Scotia | NS Sch. 340 | Nova Scotia Research and Development Tax Credit (2002 and later taxation years) | The Nova Scotia research and development tax credit is administered by the CRA and is fully refundable at the rate of 15% of eligible expenditures. Some more information is on the Nova Scotia Finance website. |
15% |
| Nunavut |
None. |
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| Ontario | ON Sch. 508 | Ontario Research and Development Tax Credit (2016 and later tax years) | The Ontario research and development tax credit (ORDTC) is administered by the CRA. Qualifying corporations can claim a non-refundable tax credit on eligible scientific research and experimental development expenditures performed in Ontario to reduce their Ontario corporate income tax payable.
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4.5% (up to May 31, 2016) 3.5% (after June 1, 2016) |
| Ontario | ON Sch. 566 | Ontario Innovation Tax Credit (2016 and later tax years) | The Ontario innovation tax credit is administered by the CRA. Qualifying corporations can claim a refundable tax credit for qualified expenditures on scientific research and experimental development performed in Ontario.
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10% (up to May 31, 2016) 8% (after June 1, 2016) |
| Ontario | ON Sch. 568 | Ontario Business-Research Institute Tax Credit (2009 and later tax years) | Find more information on Ontario Business Research Institute Tax Credit here. | |
| Ontario | ON Sch. 569 | Ontario Business-Research Institute Tax Credit Contract Information (2009 and later tax years) | Find more information on Ontario Business Research Institute Tax Credit here. | |
| Prince Edward Island |
None. |
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| Québec | RD-222 | Deduction respecting scientific research and experimental development expenditures | For information with respect to Quebec’s research and development (R&D) tax credits, please visit the provincial Web site at: Scientific Research and Experimental Development – Quebec (French Only (Seulement en français.)) |
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| Québec | RD-1029.7 | Tax credit for salaries and wages (R&D) | For eligible R&D salaries incurred by the corporation before June 5, 2014 and eligible expenditures incurred under a research contract entered into before June 4, 2014, the basic rate of this tax credit is 17.5%. This rate may be increased to 37.5% if the corporation is a Canadian-controlled corporation whose total assets for the preceding taxation year, including that of associated corporations, are $50 million or less. When the company’s total assets range from $50 million to $75 million, the 37.5% rate is reduced on a straight-line basis. The increased rate applies to expenditures limited to $3 million. For eligible R&D salaries incurred by the corporation after June 4, 2014 and eligible expenditures incurred under a research contract entered into after June 3, 2014, the base rate of the tax credit is 14%. This rate may be increased to 30% if the corporation is a Canadian-controlled corporation whose total assets for the preceding taxation year, including that of associated corporations, are $50 million or less. When the company’s total assets range from $50 million to $75 million, the 30% rate is reduced on a straight-line basis. The increased rate applies to expenditures limited to $3 million. For information with respect to Quebec’s research and development (R&D) tax credits, please visit the provincial Web site at: Scientific Research and Experimental Development – Quebec (French Only (Seulement en français.)) |
17.5% – 37.5% |
| Québec | RD-1029.7.8 | Agreement between associated corporations regarding the expenditure limit (French Only (Seulement en français.)) | For information with respect to Quebec’s research and development (R&D) tax credits, please visit the provincial Web site at: Scientific Research and Experimental Development – Quebec (French Only (Seulement en français.)) | |
| Québec | RD-1029.8.6 | Tax credit for university research or research carried out by a public research centre or a research consortium | For eligible expenses incurred by the corporation before June 5, 2014, or under a research contract entered into before June 4, 2014, the rate of that tax credit is 35%. For eligible expenses incurred by the corporation after June 4, 2014 and before December 3, 2014, or under a research contract entered into after June 3, 2014 and before December 3, 2014, the tax credit rate Is 28%. For eligible expenses incurred by the corporation after December 2, 2014 in respect of a research contract entered into after that day, the base rate of the tax credit is 14%. This rate may be increased to 30% if the company is a Canadian-owned company with total assets for the previous tax year, including associated companies, is 50 million or less. When the company’s total assets range from $ 50 million to $ 75 million, the 30% rate is reduced on a straight-line basis. The increased rate applies to expenses limited to $ 3 million, even if the corporation applies for the tax credit in respect of more than one research contract. For information with respect to Quebec’s research and development (R&D) tax credits, please visit the provincial Web site at: Scientific Research and Experimental Development – Quebec (French Only (Seulement en français.)) |
14% – 35% |
| Québec | RD-1029.8.9.03 | Tax credit for fees and dues paid to a research consortium | The corporation may claim a tax credit equal to 35% of the contributions or eligible fees it paid in respect of expenses incurred by the eligible research consortium before June 5, 2014. If expenditures are incurred after June 4, 2014 for a taxation year of the corporation that begins before December 3, 2014, the tax credit rate is 28%. Finally, if the expenses are incurred for a taxation year of the corporation that begins after December 2, 2014, the base rate of the tax credit is 14%. This rate may be increased to 30% if the company is a Canadian-owned company with total assets for the previous tax year, including associated companies, is 50 million or less. When the company’s total assets range from $ 50 million to $ 75 million, the 30% rate is reduced on a straight-line basis. The increased rate applies to expenditures limited to $ 3 million. For information with respect to Quebec’s research and development (R&D) tax credits, please visit the provincial Web site at: Scientific Research and Experimental Development – Quebec (French Only (Seulement en français.)) |
14% – 35% |
| Québec | RD-1029.8.16.1 | Tax credit for private partnership pre-competitive research | The rate for this tax credit is 35% for eligible expenditures incurred by the corporation before June 5, 2014 or under a research contract entered into before June 4, 2014. It is 28% for eligible expenses incurred by the corporation after June 4, 2014 or under a research contract entered into after June 3, 2014. For eligible expenses incurred by the corporation after December 2, 2014 in respect of a partnership agreement entered into after that day (or the renewal or extension of a partnership agreement entered into after that day), the basic rate of the credit Tax is 14%. This rate may be increased to 30% if the company is a Canadian-owned company with total assets for the previous tax year, including associated companies, is 50 million or less. When the company’s total assets range from $ 50 million to $ 75 million, the 30% rate is reduced on a straight-line basis. The increased rate applies to expenses limited to $ 3 million, even if the corporation applies for the tax credit in respect of more than one partnership agreement. For information with respect to Quebec’s research and development (R&D) tax credits, please visit the provincial Web site at: Scientific Research and Experimental Development – Quebec (French Only (Seulement en français.)) |
14% – 35% |
| Saskatchewan | SK Sch. 403 | Saskatchewan Research and Development Tax Credit (2017 and later tax years) |
The Saskatchewan research and development tax credit is administered by the CRA. Since April 1, 2017, the eligible R&D expenditures of Canadian-controlled private corporations (CCPC), except for tax exempt corporations, qualify for a 10% refundable R&D tax credit subject to an annual limit of $1 million in eligible expenditures and to a 10% non-refundable R&D tax credit for the portion of eligible expenditures in excess of the $1 million annual limit.For the other corporations, the Saskatchewan R&D tax credit remains a non-refundable tax credit at the rate of 10% on eligible expenditures incurred after March 31, 2015.
Before April 1, 2015 and after March 31, 2012, the Saskatchewan tax credit was refundable for CCPCs subject to a $3 million expenditure limit and non-refundable in all other situations at the rate of 15% on eligible expenditures. Before April 1, 2012 and after March 31, 2009, the Saskatchewan tax credit was refundable at the rate of 15% on eligible expenditures. More information about claiming SR&ED in Saskatchewan can be found on the Saskatchewan website. |
15% (up to April 1, 2017) 10% (April 1, 2017 onwards) |
| Yukon | YT Sch. 442 | Yukon Research and Development Tax Credit (2011 and later taxation years) | The Yukon research and development tax credit is administered by the CRA and is refundable at the rate of 15% of eligible expenditures. An additional 5% is available on amounts paid or payable to the Yukon College. | 15% |
| Federal | T2038(IND) | Investment Tax Credit (Individuals) | ||
| Federal | T2SCH31 | Investment Tax Credit – Corporations (2014 and later taxation years) | ||
| Federal | T661 | Scientific Research and Experimental Development (SR&ED) Expenditures Claim | ||
| Federal | T1 | Income Tax and Benefit Return | ||
| Federal | T2 | Corporation income tax return | The CRA provides two different T2 returns: 1. T2 Corporation Income Tax Return – This is an 8-page return that can be used by any corporation. 2. T2 Short Return – This is a 2-page return plus three schedules. See Guide T4012, T2 Corporation Income Tax Guide to check if you are eligible to use this return. |
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| Federal | T3RET T3 | Trust Income Tax and Information Return | ||
| Federal | T5013 | Partnership Information Return | ||
| The CRA has also created a summary of provincial and territorial research & development (R&D) tax credits. | ||||