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
Check Out Another Blog: SR&ED Expenses: What To Know About Salary and Wages
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.
