SR&ED Refund: What Are The Provincial Rates?

SR&ED Refund

Depending on where you live, applying for and collecting your provincial SR&ED refund might look a little different. To make things easier, we’ve broken down what each program is called (or in Ontario’s case, what they’re all called), its rate/percentage, and the maximum refund credit.

Alberta

Program: Scientific research & experimental development tax credit

Rate/Percentage: (Refundable) 10% on up to $4 million in eligible expenditures

Maximum Credit: $400,000

British Columbia

Program: British Columbia scientific research and experimental development tax credit

Rate/Percentage: (Refundable) 10% on up to $3 million in eligible expenditures

Maximum Credit: $400,000 

Special Note: this credit is only available to Canadian-Controlled Private Corporations (CCPCs).

Manitoba

Program: Manitoba research and development tax credit

Rate/Percentage is split into two categories:

  • (Refundable) 15% on eligible expenditures made under an R&D contract with qualifying Institutions.
  • (Non-Refundable) 7.5% on eligible expenditures made under an R&D contract with qualifying Institutions.

Maximum Credit: none

Newfoundland and Labrador

Program: Newfoundland and Labrador research and development tax credit

Rate/Percentage: (Refundable) 15%

Maximum Credit: none

New Brunswick

Program: New Brunswick research and development tax credit

Rate/Percentage: (Refundable) 15%

Maximum Credit: none

Nova Scotia

Program: Nova Scotia research and development tax credit

Rate/Percentage: (Refundable) 15%

Maximum Credit: none

Ontario

Program: Ontario research and development tax credit

Rate/Percentage: (Non-Refundable) 15%

Maximum Credit: none

 

Program: Ontario innovation tax credit

Rate/Percentage: (Refundable) 8% on up to $3 million in eligible expenditures

Maximum Credit: $240,000

 

Program: Ontario business research institute tax credit

Rate/Percentage: (Refundable) 20% on up to $20 million in eligible expenditures

Maximum Credit: $4 million

Special Note: This credit is only available for work performed in Ontario under contact with eligible research institutes

Quebec

Program: Tax credit for salaries and wages (R&D)

Rate/Percentage: (Refundable) 14%. If the corporation is a CCPC whose total assets for the preceding tax year are $50 million or less, the rate is 30%. When the company’s total assets range from $50 to $75 million, the rate is reduced in a straight line.

Maximum Credit: The base rate has no maximum, but the increased rate is capped at $900,000.

Saskatchewan

Program: Saskatchewan research and development tax credit

Rate/Percentage: (Refundable) 10% up to $1 million on eligible expenses and (Non-refundable) 10% for any eligible expenses over $1 million for CCPCs. All other corporations receive (Non-refundable) at 10%.

Maximum Credit: CCPCs maximum refundable credit is $100,000 and no maximum for non-refundable credit. All other corporations have no maximum.

Yukon

Program: Yukon research and development tax credit

Rate/Percentage: (Refundable) 15% and an additional 5% available on amounts paid or payable to the Yukon College

Maximum Credit: none

The Northwest Territories, Nunavut, and Prince Edward Island have no provincial programs available at the time of writing.

Maxim specializes in Federal and Ontario-bases SR&ED programs, however, if you ever have any questions, please reach out.

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