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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 in Canada. Among them, the SR&ED tax credit program is the most significant. This tax incentive program covers a wide range of eligible work in science and technology. 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 dollars in tax benefits awarded each year, it is the largest tax initiative of its kind. The program helps reduce your income tax (or receive payments if the tax credits surpass your income tax, which happens very often) 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 very well qualify.

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

Through the SR&ED tax credit program, your company may earn either or a combination of both):

  • a refundable tax credit to first reduce your income tax payable to zero (good!) and then the surplus is paid out to you as a cash refund. Think of it this way: first you wipe out your tax bill (good!), then you actually get money back (even better!)
  • a non-refundable credit to reduce your income tax burden and carry unused credits forward for future benefit. These carry-forward credits can be claimed retroactively for up to three years and carried forward up to 20.

However, to achieve a successful SR&ED claim, it is essential to maintain a detailed record of your work and understand the eligibility requirements defined in the Income Tax Act.

Emergex SR&ED Subsidies helps you optimize your SR&ED refunds

We support you in navigating every phase of your SR&ED claim. From identifying eligible SR&ED activities to preparing documents for a possible CRA review, our SR&ED consultants ensure full compliance. We are particularly experienced with IT and software development files. Our goal is to help you claim SR&ED tax credits while maximizing return and 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 the SR&ED work
  • Validate SR&ED eligibility
  • Prepare documentation for your tax credit claim
  • Prepare, simulate and assist in audits and if necessary, escalate

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

Consulting and training

We do not just fill out forms. Emergex offers:

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

Optimization

In addition to the SR&ED tax credit program, Emergex identifies and optimizes other federal and provincial tax credits, such CDAE, digital media, and multimedia. We also assist with grants like IRAP, the Industrial Research Assistance Program. Our goal is to create an optimized mix of incentives that helps you receive funding, offset operational costs and scale innovation.

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 in Canada that leads to 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 crucial to identify all qualified expenditures incurred during the fiscal year. This includes costs related to eligible SR&ED work, such as wages, subcontractor fees, materials consumed, R&D equipment and overhead. 

Keeping a detailed record of your work, including technical reports and timelines, helps ensure you meet CRA eligibility requirements. Working with experienced SR&ED consultants ensures your file is complete, your claimant profile is solid, and that your submission aligns with CRA review expectations. The better your documentation, the stronger your claim.

There is no official minimum, but the SR&ED tax credit program involves significant documentation and preparation time. It is typically not worthwhile unless your potential credit exceeds a few tens of thousands of dollars. In Quebec, for example, the first $50,000 of SR&ED expenditures are excluded from the calculation of the tax credit, which impacts smaller businesses. Claimants should evaluate whether they meet such thresholds to avoid wasting time and resources. It is wise to assess your potential refund before launching the process.

Probably, especially if you want to maximize your SR&ED tax credit while minimizing the risk of rejection. The Canada Revenue Agency (CRA) regularly updates its guidance and interpretation of technological uncertainty, systematic investigation, experimental development, and technological advancement. A good consultant helps ensure your documentation reflects qualified SR&ED work, supports your tax credit claim, and prepares you for a potential CRA review or audit. Consulting firms like Emergex combine technical, financial, fiscal, and even legal expertise to guide you through the full claim cycle, from identifying eligible SR&ED to submitting a compliant and optimized claim. Our multidisciplinary team is your best ally for a successful SR&ED claim.

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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!