R&D Investment Calculator with SR&ED Credits
Calculate the true return on your R&D investments by factoring in Canadian SR&ED tax credits. See how government incentives can reduce your innovation costs by up to 65% and improve your R&D budget planning.
R&D Investment Details
Company & Location
Expected Returns & Risk
SR&ED Tax Credits
Federal Credits
Provincial Credits
Total Credits (43.0%)
Investment Analysis
Without SR&ED
With SR&ED
SR&ED Impact
Risk Analysis
Investment Insights
Understanding SR&ED Tax Credits
Federal Credits
Provincial Credits
Eligible Expenses
- Salaries & wages (65-80%)
- Materials consumed
- Contractor payments
- Overhead allocation
R&D Investment Strategy
Maximize Your R&D ROI
- Plan for credits: Structure R&D activities to maximize SR&ED eligibility
- Document everything: Proper documentation is key for successful claims
- Provincial stacking: Combine federal and provincial credits for maximum benefit
- Cash flow timing: Plan for credit timing in your financial projections
Common R&D Investment Areas
- Software development: New algorithms, platforms, or technological advances
- Product innovation: New materials, processes, or manufacturing methods
- Process improvement: Technological uncertainty resolution activities
- Research trials: Systematic investigation and experimentation
Canada's R&D Tax Advantage
Why Canada Leads in R&D Incentives
Annual SR&ED credits distributed
Maximum credit rate (federal + provincial)
Companies benefit annually
Canada offers one of the world's most generous R&D tax credit systems, making it an ideal location for innovation and technology development.
SR&ED Frequently Asked Questions
What R&D activities qualify for SR&ED credits?
SR&ED covers systematic investigation or search by experiment or analysis in natural sciences, engineering, or technology. This includes developing new or improved materials, devices, products, or processes. Activities must involve technological uncertainty and systematic investigation.
How much can SR&ED credits reduce my R&D costs?
SR&ED can reduce your R&D costs by 35-65% depending on your company size, province, and expenditure level. Small CCPCs get 35% federal + up to 10% provincial. Large corporations get 15% federal + provincial rates.
When do I receive SR&ED credits?
Federal refundable credits are typically received within 60-90 days of filing. Non-refundable credits offset taxes owing. You must file within 18 months of your fiscal year end. Provincial timing varies by province.
Can I claim SR&ED credits retroactively?
You can file SR&ED claims for up to 18 months after your fiscal year end, but cannot go back beyond this deadline. It's best to plan and file annually to maximize benefits and maintain good documentation practices.
What documentation do I need for SR&ED claims?
You need detailed records of R&D activities, time tracking, technical descriptions, financial records, and evidence of technological uncertainty. Good documentation is crucial for successful claims and CRA audits.
Ready to Maximize Your R&D Tax Credits?
Let Shredy help you file your SR&ED claim and maximize your R&D investment returns.