The Scientific Research and Experimental Development (SR&ED) Tax Credit is a business assistance program administered by the federal and provincial governments to encourage and support organizations to undertake research and development (R&D) activities that they may not otherwise be willing to attempt. Whatever eligible SR&ED work you are doing, you can use your pool of deductible SR&ED expenditures to reduce your net income for tax purposes in the current year or deduct them in a future year. Your ITCs will be at least 15% and can be as much as 35% of your qualified SR&ED expenditures .

At the federal level, a 15% non-refundable tax credit on qualified expenditures is available. Certain Canadian-controlled private corporations are eligible for a 35% refundable credit on the first $3 million of qualified expenditures, and provincial tax credits, which may also be refundable, are also available.