What is SR&ED (Scientific Research & Experimental Development)?

Date: June 17, 2026
Category: SR&ED Basics

SR&ED (Scientific Research & Experimental Development) is a tax credit available to every Canadian business. It is a tax incentive for businesses to conduct their research and development within Canada no matter what industry, type of innovation, or even whether that development was successful. While all businesses are eligible, Carnegie Capital Group specializes in Software and IT, Engineering and Manufacturing, Life Sciences and Medtech, and Environmental industries as our most successful claimants. However, expanded eligibility and higher claim limits in 2025 mean that more businesses can be successful too. Every year, 20,000 Canadian businesses successfully recover billions back through this program. Don’t miss out in 2026.

Any research and development conducted within 18 months of the end of your tax year qualifies for SR&ED. This includes optimizing large-scale manufacturing, engineering safer work processes, or improving the quality of your products and services from reformulating draft beer to reconfiguring mobile phone parts.

To prepare a claim you will need a few documents to start (such as wages, cost of equipment, etc.) to calculate your expenditures to recover. Next, fill out the tax form T661 to present and support your R&D work. Once that is all filled out, you will submit your SR&ED claim with your income tax return for the year to the CRA.

Most clients receive their funds within 3 months of submitting their claim. If not, we appeal the decision to get you a second look. Our clients usually file again year on year, so we recommend documenting your future R&D too. We work as quickly as possible to file your claim, but approval times can vary.

Filing a claim can be technically challenging, but it doesn’t have to be. While documentation and clarity on your technical uncertainty is key, our team of experts at Carnegie Capital Group streamline this process to significantly increase your chances of success. Unlike other firms, we don’t win if you don’t win – we don’t charge anything until you receive your successful claim.