Federal Budget SR&ED Change Could Impact Your Tax Planning

May 2019

If your Canadian-controlled private corporation (CCPC) is engaged in Scientific Research & Experimental Development (SR&ED), you are likely familiar with the various tax benefits available in Canada. One of the most generous incentives is the federal investment tax credit (ITC). The federal ITC can be as high as 35% of eligible expenditures and can be refundable for qualifying CCPCs, offering significant tax relief and potentially helping to provide the cash flow needed to sustain the SR&ED activities of the business. (For a general overview of the SR&ED program and tax incentives, read our article “The Tax Benefits of SR&ED”.)