The SR&ED Tax Credit Claim Process

Businesses wishing to claim the Scientific Research and Experimental Development (SR&ED) tax credit must complete Form T661, Claim for Scientific Research and Experimental Development (SR&ED) in Canada, along with Schedule T2SCH31, Investment Tax Credit – Corporations and the appropriate provincial forms.

Claims are subject to technical and financial reviews by the CRA to ensure eligibility and compliance with the Income Tax Act. Once the claim is assessed, the tax credit will be used to reduce taxes payable and issue a cash refund cheque for qualifying corporations.

Claims must be submitted with the corporate tax return for the year in which the SR&ED expenditure was incurred. There is a possibility that prior years' claims can also be made (contact Hi-Tech for more information). The CRA is committed to processing SR&ED refundable claims within 120 calendar days from receipt of a complete claim.