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What is your experience with SR&ED tax credits?

As a consulting company active throughout Canada for over 25 years in R&D tax credits, known as the SR&ED tax credit program, Emergex helps you optimize your claims. From planning and preparation to audit defense and coaching, our team of experts delivers some of the most trusted SR&ED services in the industry. Several Canadian government initiatives support research and development, and among them, the SR&ED tax credit program is the most significant. This incentive covers a wide range of eligible work in science and technology — meaning you could already be doing SR&ED without even knowing it.

SR&ED Tax Credit

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What is the SR&ED tax credit?

The SR&ED tax credit program is a government tax incentive administered by the Canada Revenue Agency (CRA). It encourages Canadian businesses of all sizes and industries to conduct research and development within Canada. With over $3 billion in tax benefits awarded each year, it is the largest tax initiative of its kind. The program helps reduce your income tax—or even pay you directly if credits surpass your taxes—by recognizing qualified expenditures related to experimental development, applied research, or basic research. Whether you are a startup, scale-up, SME, or large corporation, if you incur costs for innovation, you may qualify.

SR&ED refundable tax credits: what can your business earn?

Through the SR&ED program, your company may receive one or both of the following:

  • A refundable tax credit that first reduces your income tax payable to zero, with any surplus refunded to you in cash. Think of it this way: first you eliminate your tax bill, then you actually get money back.
  • A non-refundable tax credit to reduce your income tax burden, with unused credits carried back for up to three years or forward for up to 20 years.

To achieve a successful claim, it is essential to maintain detailed records of your work and understand the eligibility requirements under the Income Tax Act.

How Emergex helps optimize your SR&ED refunds

We support you in every phase of your SR&ED claim—from identifying eligible activities to preparing documents for a CRA review. Our consultants ensure full compliance and are particularly experienced with IT and software development projects. Our goal is to help you maximize returns while minimizing audit risks.

Claim the SR&ED investment tax credit

Since 1994, we have helped hundreds of clients claim SR&ED credits with a 98% success rate. Our experts:

  • Identify activities and expenses potentially eligible for SR&ED
  • Validate SR&ED eligibility
  • Prepare documentation for your claim
  • Assist with audits and escalate if necessary

Our team ensures your qualified expenditures meet the CRA’s strict standards.

Consulting and training

We don’t just fill out forms. Emergex also provides:

  • Strategic planning for your SR&ED incentives
  • Employee training to identify and document SR&ED work
  • Workshops on technological, financial, and fiscal aspects of SR&ED
  • Long-term optimization of revenues for claimants

Optimization

Beyond SR&ED, we help you leverage other federal and provincial tax credits such as CDAE, digital media, and multimedia programs. We also assist with grants like IRAP, the Industrial Research Assistance Program. Our goal is to create an optimized mix of incentives that offsets costs and supports growth.

SR&ED financing

Need liquidity before receiving your credits? Emergex helps you:

  • Access pre-financing with recognized letters of comfort
  • Connect with partners in tax credit financing
  • Prepare files aligned with CRA’s technical and financial criteria

Email: info@emergex.com

98%

Historical success rate

25+

Years of experience

110 %

Maximum refund with SR&ED and IRAP combined

74 %

Maximum tax refund on eligible expenses

5 000

Companies claim SR&ED every year in Canada

SR&ED FAQ

These benefits encourage Canadian businesses to conduct research that drives innovation, productivity, and growth. Startups, scale-ups, and SMEs can especially benefit from this government tax incentive program.

The rates vary depending on the type of business and your eligibility under the Income Tax Act.

  1. Canadian-controlled private corporations (CCPCs) can claim a refundable tax credit at an enhanced rate of 35% on up to $3 million in qualified SR&ED expenditures.
  2. Expenditures exceeding this threshold qualify for a 15% non-refundable tax credit.
  3. Other private corporations (non-CCPCs) are eligible for a 15% non-refundable investment tax credit.
  4. Individuals and trusts may qualify for a 15% refundable credit.
  5. Partnerships are not eligible for the SR&ED tax credit.

The SR&ED tax credit program is one of the most generous incentives for research and development in Canada, allowing companies to reinvest in innovation and reduce financial risk.

To maximize your SR&ED tax incentives, it is essential to identify all qualified expenditures incurred during the fiscal year, including wages, subcontractor fees, materials consumed, R&D equipment, and overhead. Keeping detailed records of your work, such as technical reports and timelines, ensures compliance with CRA eligibility requirements. Working with experienced SR&ED consultants helps ensure your file is complete, your claimant profile is strong, and your submission aligns with CRA review expectations. The more thorough your documentation, the stronger your claim.

There is no official minimum, but the SR&ED tax credit program requires significant documentation and preparation. It is generally not worthwhile unless your potential credit exceeds several tens of thousands of dollars. In Quebec, for instance, the first $50,000 of SR&ED expenditures are excluded from the tax credit calculation, which can affect smaller businesses. Claimants should evaluate whether they meet such thresholds to avoid wasting time and resources, making it wise to estimate your potential refund before beginning the process.

Working with a consultant is highly recommended, especially if you want to maximize your SR&ED tax credit while minimizing the risk of rejection. The Canada Revenue Agency (CRA) frequently updates its guidance on technological uncertainty, systematic investigation, experimental development, and technological advancement. A skilled consultant ensures your documentation accurately reflects qualified SR&ED work, supports your tax credit claim, and prepares you for potential CRA reviews or audits. Firms like Emergex combine technical, financial, fiscal, and legal expertise to guide you through the entire claim cycle—from identifying eligible SR&ED activities to submitting a compliant and optimized claim—making their multidisciplinary team your best ally for success.

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We are proud to be a trusted partner for companies across Canada looking to leverage SR&ED, other tax credits and grants. Benefit from our quarter of a century of experience by asking our opinion about your past, present and future claims!