SR&ED is a federal program, however, each province has its own tax credit that is based on the federal program. For a detailed explanation of a specific provincial or territorial tax credit, see table below.

Jurisdiction

Type

Rate

Newfoundland and LabradorRefundable15%
Nova ScotiaRefundable15%
New Brunswick*Refundable 115% After December, 31 2002

10% Before

Ontario (OITC)*Refundable 28% After May 31, 2016, 10% before for max. ITC $300,000

unless PUC is $25 million

Ontario (OBRITC)*Refundable 320% $20 million max
Ontario (ORDTC)Non-Refundable3.50% After May 31, 2016, 4.5% Before
Manitoba*Non-Refundable 415% After April 11, 2017
20% Before
Saskatchewan*Non-Refundable 510% After March 31, 2015
15% Before
AlbertaRefundable10% for max. ITC $400,000
British Columbia*Refundable 610% for max. ITC $300,000

Non-refundable ITC for expenditures over limit

YukonRefundable15%
Additional 5% if paid to Yukon College
Quebec*Refundable 7, 8*20%
  1. After 2002, ITC is refundable. Before 2002, ITC was Non-Refundable
  2. If prior year taxable income exceeds $800,000, OITC is not claimable
  3. Available only to Corporations and corporations that are members of partnerships that work with eligible research institutes (ERIs: Universities, Colleges, Hospital Research Institutes, Other Organizations)
  4. The credit is refundable for eligible expenditures after 2009 for corporations that work with eligible institutes in Manitoba
  5. Refundable ITC at the rate of 15% for all eligible expenditures occurring after March 18, 2009 and before April 1, 2015
  6. Refundable only for CCPC, otherwise non-refundable
  7. Quebec’s June 4, 2014 budget reduces all Quebec R&D tax credit rates by 20%, effective for R&D expenditures incurred after June 4, 2014. Many specific rules.
  8. Quebec Canadian-controlled corporations with less than $50 million in assets, on an associated basis, can claim the 30% rate on up to the spending limit of $3 million of R&D wages, on an associated basis. For those with assets between $50 million and $75 million, the 30% rate is gradually reduced to 14%. The rate is 14%* for all other taxpayers.

The 14% and 30% rates were 17.5% and 37.5%, respectively, for R&D expenditures incurred generally before June 5, 2014. For expenditures incurred:

  • before April 22, 2005, the 37.5% rate was 35%
  • before June 13, 2003, the 35% rate was 40% and the 17.5% rate was 20%
  • In Newfoundland and Labrador, Quebec and the Yukon, individuals can also claim the provincial credits. Credits can be fully claimed against a taxpayer’s provincial or territorial income tax
  • For Nova Scotia, New Brunswick, OBRTIC, Manitoba, Saskatchewan and British Columbia, corporations that are members of a partnership also have availability to the provincial tax credit

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For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.