SR&ED · rates by province and territory
SR&ED tax credit rates by province: your combined federal + provincial rate
The federal credit is only half the answer. Nine provinces and Yukon run their own R&D credit on top of it and three jurisdictions run none at all, and the two rates do not simply add. This page gives every jurisdiction's combined rate, in percent and in dollars, shows the arithmetic each time, and lets you pick your province to see your own stack.
Updated September 2026. Every figure on this page is sourced to the Canada Revenue Agency or the administering province, linked at the point of use, and cross-checked against the 10 active R&D tax-credit records in the GrantCompass catalogue, September 2026; Newfoundland & Labrador and Yukon are covered from CRA sources because the catalogue does not yet carry their records.
The short answer. A Canadian-controlled private corporation earns a 35% refundable federal SR&ED credit on the first $6 million of qualified expenditures. Budget 2025 raised that expenditure limit directly from $3 million to $6 million, lifting the maximum enhanced credit to $2.1 million a year. On top of that, the stated provincial rates run from 3.5% to 30%, or zero.
Quebec is the highest, at a 20% to 30% refundable credit that stacks on the federal 35%. Prince Edward Island, the Northwest Territories and Nunavut are the lowest at 35% combined, because none of the three offers a provincial or territorial R&D credit at all. Newfoundland and Labrador and Yukon sit one tier up, with real 15% refundable CRA-administered credits the catalogue does not yet carry. Everywhere else falls between.
Pick your province: what is your combined rate?
Choose a province or territory: the explorer renders the federal rate, the provincial layer, the refundability and the stacking arithmetic from the catalogue data and CRA sources, with the gap between the headline sum and the cash rate drawn on the bar.
No provincial layer selected. Without a provincial credit the combined rate is the federal 35% alone: on $500,000 of qualifying spend, $175,000 back, all of it refundable for a CCPC.
Rates: GrantCompass catalogue, September 2026 (10 active R&D tax-credit records). Combined cash rate = federal + provincial − (federal × provincial), because the provincial credit reduces the federal expenditure base.
What is the combined SR&ED rate in each province and territory?
| Jurisdiction | Provincial rate | Refundable? | Combined headline | Cash on $500,000 |
|---|---|---|---|---|
| Quebec | 20% to 30% (CRIC) | Yes | 55% to 65% | $240,000 to $272,500 |
| Alberta | 20% incremental / 8% base | Yes | 55% / 43% | $240,000 / $201,000 |
| Manitoba | 15% | 50% in-house; 100% contracted | 50% | $186,250 in-house / $223,750 contracted |
| New Brunswick | 15% | Yes | 50% | $223,750 |
| Newfoundland & Labrador | 15% | Yes | 50% | $223,750 |
| Nova Scotia | 15% | Yes | 50% | $223,750 |
| Yukon | 15% (+5% university) | Yes | 50% | $223,750 |
| British Columbia | 10% | Yes, to the $6M base | 45% | $207,500 |
| Saskatchewan | 10% | Yes, to $2M of spend | 45% | $207,500 |
| Ontario | 8% (OITC) + 3.5% (ORDTC) | OITC only | 43% (+3.5% non-refundable) | $201,000 |
| Prince Edward Island | None offered | None | 35% | $175,000 |
| Northwest Territories | None offered | None | 35% | $175,000 |
| Nunavut | None offered | None | 35% | $175,000 |
Why the combined rate is never the sum of the two headline rates
Here is the rule that surprises everyone, in the CRA's own words from its Assistance and Contract Payments Policy: “A provincial or territorial R&D tax credit is government assistance and it will reduce a claimant's pool of deductible SR&ED expenditures and the qualified SR&ED expenditures,” and that applies “regardless of whether the credit is refundable or non-refundable.” The headline sum is still the number every provincial fact sheet quotes, and the one your accountant will recognise; it is simply not the cheque.
Stacking rule: CRA, Assistance and Contract Payments Policy §4.5 (provincial credits reduce qualified expenditures, refundable or not). Provincial rates: GrantCompass catalogue, September 2026.| Step | Calculation | Amount |
|---|---|---|
| B.C. credit | 10% × $500,000 | $50,000 |
| Federal credit | 35% × ($500,000 − $50,000) | $157,500 |
| Combined cash | 41.5% effective | $207,500 |
Verdict
The best jurisdiction to incur R&D expenditure in, purely on rate, is Quebec: at the top of its band a CCPC spending $500,000 on qualifying work recovers $272,500 in cash, $97,500 more than the identical company would recover in Prince Edward Island, the Northwest Territories or Nunavut. That gap is real money, but it is not a reason to relocate: the credit follows where the work is physically carried out, and moving an R&D team costs more than the spread.
Every jurisdiction with a credit, one at a time
Nine provinces and Yukon run an R&D credit on top of the federal layer. The GrantCompass catalogue carries an active record for eight of those provinces plus the federal SR&ED program itself; Newfoundland & Labrador and Yukon have real CRA-administered 15% refundable credits that the catalogue does not yet carry, and their sections below are sourced to the CRA. Each section stands on its own. Figures assume a Canadian-controlled private corporation with $500,000 of qualifying SR&ED expenditure, inside every expenditure limit and below every phase-out threshold, with the provincial-then-federal stacking arithmetic applied.
Quebec: a 20% to 30% refundable credit, the highest stated rate in Canada
| Fact | Quebec |
|---|---|
| Provincial rate | 20% to 30%, varies by firm size and region |
| Refundability | Refundable |
| Program | CRIC (replaced the legacy R&D credits for taxation years beginning after March 25, 2025) |
| Claim form | RD-1029.8.CR-T, filed with the Quebec CO-17 return |
| Filing window | Within 18 months of fiscal year-end |
For taxation years beginning after 25 March 2025, Quebec's legacy R&D credits are replaced by the CRIC, the tax credit for research, innovation and commercialization. You can still claim the legacy credits for any taxation year that begins before 26 March 2025, and each such year carries its own filing deadline. The record states the CRIC rate as 20% to 30%, refundable, varying by firm size and region: any single-number summary of “the Quebec rate” is wrong for somebody. The claim is filed annually with the Quebec CO-17 corporation tax return on form RD-1029.8.CR-T, within 18 months of fiscal year-end.
| Layer | 20% band | 30% band |
|---|---|---|
| Quebec CRIC | $100,000 | $150,000 |
| Federal SR&ED | 35% of $400,000 = $140,000 | 35% of $350,000 = $122,500 |
| Combined cash | $240,000 (48.0%) | $272,500 (54.5%) |
Alberta: 55% in a growing R&D year, 43% once spending levels off
| Fact | Alberta |
|---|---|
| Provincial rate | 20% above the two-year base / 8% on the base |
| Refundability | Refundable (paid through the corporate tax system) |
| Size limits | Full benefit below $10M taxable capital; phased out to nil at $50M |
| Claim form | AT1 Schedule 29 |
| Filing window | Within 21 months of fiscal year-end; federal T661 prerequisite within 18 months |
Alberta is the one province whose rate depends on whether your R&D is growing. The record states the structure plainly: an 8% credit on eligible R&D spending up to a firm's base spending level, and 20% on spending above it. A first-year R&D spend has a base of zero, so all of it earns the 20% tier. The grant covers up to $4 million of annual R&D spending, is refundable, and phases out with taxable capital: full benefit below $10 million, gone entirely at $50 million. One number to keep separate: that $4 million is an Alberta cap and has nothing to do with the federal SR&ED expenditure limit, which Budget 2025 set at $6 million. There has never been a $4 million federal SR&ED limit.
| Layer | Rate | Amount |
|---|---|---|
| Alberta IEG | 20% incremental | $100,000 |
| Federal SR&ED | 35% of $400,000 | $140,000 |
| Combined cash | 48.0% effective | $240,000 |
Manitoba: a 50% headline where only 37.25% reaches you in cash, unless you contract the work
| Fact | Manitoba |
|---|---|
| Provincial rate | 15% |
| Refundability | 50% refundable in-house; 100% refundable via qualifying institute contract |
| Unused non-refundable half | 3-year carryback, 20-year carryforward |
| Claim route | With the T2 return; federal T661 is the gateway |
| Filing window | Within 18 months of fiscal year-end; expenditures identified within 12 months of the return's due date |
This is the province where the headline rate misleads most. The record states a 15% credit with the refundable portion at 50% for in-house R&D and 100% for contract research with qualifying Manitoba institutes. The non-refundable half is not lost: it carries back three years and forward twenty, but it is only worth something once you owe Manitoba tax, which a company doing serious R&D often does not. The structure of the work, not the size of the claim, decides what you actually receive.
| Layer | Rate | Amount |
|---|---|---|
| Manitoba credit, refundable half | 7.5% in cash | $37,500 |
| Federal SR&ED | 35% of $425,000 | $148,750 |
| Combined cash | 37.25% effective | $186,250 |
New Brunswick: 15% refundable, no cap
| Fact | New Brunswick |
|---|---|
| Provincial rate | 15% |
| Refundability | Fully refundable, no cap stated |
| Eligibility core | N.B. corporation with a permanent establishment in the province; expenditures qualify as SR&ED under the federal Income Tax Act |
| Claim form | Schedule 360, with the annual corporate return |
| Filing window | Ongoing; no intake windows or application round |
New Brunswick is the simplest structure in the country after the federal layer itself: a fully refundable 15% on eligible expenditures, no application round, no competition, no cap stated in the record. If your corporation has a permanent establishment in the province and the work qualifies as SR&ED under the federal Income Tax Act, you file Schedule 360 with the annual corporate return and the credit comes back in cash.
| Layer | Rate | Amount |
|---|---|---|
| N.B. R&D credit | 15% refundable | $75,000 |
| Federal SR&ED | 35% of $425,000 | $148,750 |
| Combined cash | 44.75% effective | $223,750 |
Newfoundland and Labrador: 15% fully refundable, claimed on Schedule 301
| Fact | Newfoundland and Labrador |
|---|---|
| Provincial rate | 15% |
| Refundability | Fully refundable, applied first against total taxes payable |
| Claim form | Schedule 301 |
| Filing window | No later than 12 months after the corporation's filing due date, a tighter window than the federal 18 months |
The provincial credit is 15% of eligible expenditures for R&D carried out in the province, and the CRA describes it as “fully refundable, but must first be applied against total taxes payable.” It is claimed on Schedule 301, filed no later than 12 months after the corporation's filing due date, a tighter window than the federal 18 months and the reason some Newfoundland claimants recover the federal half and forfeit the provincial one.
| Layer | Rate | Amount |
|---|---|---|
| N.L. R&D credit | 15% refundable | $75,000 |
| Federal SR&ED | 35% of $425,000 | $148,750 |
| Combined cash | 44.75% effective | $223,750 |
Nova Scotia: 15% refundable, no cap
| Fact | Nova Scotia |
|---|---|
| Provincial rate | 15% |
| Refundability | Refundable, no cap stated; refund available where the corporation has or would have taxable income allocated to Nova Scotia |
| Claim form | Schedule 340, with the T2 corporate return |
| Filing window | Ongoing; CRA states no later than 18 months after the corporation's tax year-end |
Nova Scotia matches New Brunswick almost rate for rate: a refundable 15% on qualifying expenditures incurred in the province, claimed on Schedule 340 with the corporate return, with taxation years 1998 and later in scope. The record carries one nuance worth reading closely: the refund is available where the corporation has or would have taxable income allocated to Nova Scotia. In practice, model your Nova Scotia allocation before you count the full 15% as cash.
| Layer | Rate | Amount |
|---|---|---|
| N.S. R&D credit | 15% refundable | $75,000 |
| Federal SR&ED | 35% of $425,000 | $148,750 |
| Combined cash | 44.75% effective | $223,750 |
Yukon: 15% fully refundable, and 55% combined on work paid to Yukon University
| Fact | Yukon |
|---|---|
| Territorial rate | 15%, plus 5% on amounts paid or payable to Yukon University |
| Refundability | Fully refundable |
| Claim form | Schedule 442 |
| Filing window | Within 18 months of the end of the tax year |
Yukon is the only territory with an R&D tax credit, which is why blanket statements that “no territory offers one” are wrong. The CRA sets the credit at “15% of eligible expenditures incurred in the tax year” plus “5% of eligible expenditures included above paid or payable to Yukon University,” and it is fully refundable. File Schedule 442 within 18 months of the end of the tax year.
| Layer | Rate | Amount |
|---|---|---|
| Yukon R&D credit | 15% refundable | $75,000 |
| Federal SR&ED | 35% of $425,000 | $148,750 |
| Combined cash | 44.75% effective | $223,750 |
British Columbia: 10% refundable, and the credit is now permanent
| Fact | British Columbia |
|---|---|
| Provincial rate | 10% refundable to a $6M base; 10% non-refundable above |
| Who claims the refundable credit | CCPCs; eligible Canadian public corporations for tax years beginning on or after December 16, 2024 |
| Status | Permanent (Budget 2026 removed the previous sunset) |
| Claim form | Form T666 |
| Filing window | No later than 18 months after the end of the tax year |
B.C. Budget 2026 made the provincial SR&ED credit permanent, removing the sunset date it previously carried, and extended the refundable credit beyond CCPCs to eligible Canadian public corporations for tax years beginning on or after 16 December 2024. Below the expenditure base the credit is 10% refundable; spending above the base still earns 10%, but as a non-refundable credit available to all qualifying corporations. The record's amount ceiling is $600,000, the refundable 10% of the $6 million base.
| Layer | Rate | Amount |
|---|---|---|
| B.C. SR&ED credit | 10% refundable | $50,000 |
| Federal SR&ED | 35% of $450,000 | $157,500 |
| Combined cash | 41.5% effective | $207,500 |
Saskatchewan: 10% refundable on the first $2 million
| Fact | Saskatchewan |
|---|---|
| Provincial rate | 10% |
| Refundability | Refundable for CCPCs to $2M of annual spend; non-refundable above |
| Annual cap | $1 million per corporation |
| Threshold change | Refundable limit raised from $1M to $2M effective December 16, 2024 |
| Claim form | Schedule 403, with the Saskatchewan corporate return |
Saskatchewan doubled the refundable threshold from $1 million to $2 million of annual qualifying expenditures effective 16 December 2024, raising the maximum refundable credit to $200,000. CCPCs get the 10% refundable inside that threshold; other corporations get a 10% non-refundable credit, subject to the $1 million annual cap that applies to everyone. File Schedule 403 with the Saskatchewan corporate return; if you also claim the federal SR&ED ITC, the T661 deadline applies to it separately.
| Layer | Rate | Amount |
|---|---|---|
| Sask. R&D credit | 10% refundable | $50,000 |
| Federal SR&ED | 35% of $450,000 | $157,500 |
| Combined cash | 41.5% effective | $207,500 |
Ontario: an 8% refundable credit plus a 3.5% non-refundable one
| Fact | Ontario |
|---|---|
| Provincial rates | 8% (OITC, refundable) + 3.5% (ORDTC, non-refundable) |
| OITC size limit | Prior-year taxable capital of the associated group must not exceed $50M; the credit phases out to nil above that |
| OITC record ceiling | $240,000 (per-record amountMax) |
| ORDTC record range | $1,000 to $500,000 (per-record amountMin to amountMax) |
| Claim forms | T2 with federal T661; Ontario schedules 566 (OITC) and 508 (ORDTC) |
| Filing window | Within 18 months of fiscal year-end; missing it forfeits the OITC for that year permanently |
Ontario runs two credits, and the difference between them matters more than the rates suggest. The OITC is 8% refundable, and it shrinks with size: the record ties it to associated-group taxable capital of $50 million, phasing out to nil above that. The ORDTC is 3.5% and non-refundable, so it only helps a corporation that already owes Ontario tax. Both require the federal claim: you must qualify for the federal SR&ED ITC and file the T661 for the year, and the OITC is claimed within 18 months of fiscal year-end, with the record stating plainly that missing that deadline forfeits the credit for the year permanently.
| Layer | Rate | Amount |
|---|---|---|
| Ontario OITC | 8% refundable | $40,000 |
| Federal SR&ED | 35% of $460,000 | $161,000 |
| Combined cash | 40.2% effective | $201,000 |
Which provinces and territories have no R&D tax credit at all?
| Jurisdiction | Provincial R&D credit | Combined rate (CCPC) | Cash on $500,000 |
|---|---|---|---|
| Prince Edward Island | None offered | 35% federal only | $175,000 |
| Northwest Territories | None offered | 35% federal only | $175,000 |
| Nunavut | None offered | 35% federal only | $175,000 |
The practical consequence is simple: your federal claim is the whole claim, and there is no provincial schedule to file or forget. The flip side is the spread. On $500,000 of qualifying spend, a company in one of these three jurisdictions leaves between $26,000 (versus Ontario's refundable path) and $97,500 (versus the top of Quebec's band) on the table. And because the credit follows where the work is physically carried out, where you locate qualifying work is a planning decision, not an accounting afterthought.
Verdict
If you run an R&D operation in P.E.I., the Northwest Territories or Nunavut, your rate strategy is entirely federal: maximize the 35% enhanced claim, file the T661 inside 18 months, and document contemporaneously. There is no provincial layer to optimize, and no provincial layer to rescue a weak federal claim.
Refundable and non-refundable credits are not the same money
| Jurisdiction | Refundable portion | Non-refundable portion |
|---|---|---|
| Quebec | Stated refundable across the 20% to 30% band | None stated |
| Alberta | Both the 20% and 8% tiers | None stated |
| Manitoba | 7.5% in-house; full 15% via qualifying institute contract | 7.5% in-house (carried back 3 years, forward 20) |
| New Brunswick | All 15% | None stated |
| Nova Scotia | 15%, where the corporation has or would have taxable income allocated to N.S. | None stated |
| N.L. / Yukon | All 15% (CRA-administered; no catalogue record yet) | None stated |
| B.C. / Saskatchewan | 10%, up to each province's expenditure limit ($6M base in B.C.; $2M of spend in Saskatchewan) | 10% above the limit (both provinces) |
| Ontario | 8% (OITC) | 3.5% (ORDTC) |
| P.E.I. / NT / NU | None offered | None offered |
Verdict
The rate a pre-revenue company should read is the refundable one, never the headline. Manitoba is the clearest case: its 15% headline delivers 7.5% in cash on in-house R&D, because half the credit is non-refundable. Contract the work to a qualifying institute and the full 15% becomes refundable: the structure of the work changes what you receive.
Every rate on this page assumes you are a CCPC. What if you are not?
If you are a CCPC with taxable income under $800,000 and taxable capital under $75 millionYour federal rate is 35%, refundable, on up to $6 million of expenditures
Every combined figure on this page applies to you. Budget 2025 raised the expenditure limit directly from $3 million to $6 million, so the maximum enhanced credit is $2.1 million a year.
If you are a CCPC above those thresholds, or a public or foreign-controlled corporationYour federal rate is the 15% basic rate, generally non-refundable
The 15% reduces tax owing rather than paying you cash, and several provincial layers change with it: Saskatchewan's credit is non-refundable for non-CCPCs subject to the $1 million annual cap, and B.C.'s refundable credit extends to eligible Canadian public corporations only for tax years beginning on or after 16 December 2024.
If you are not sure whether you count as a CCPCResolve that before you model any provincial layer
The federal rate decision changes every number downstream, so resolve it with your accountant before comparing provinces.
| Corporation type | Federal rate | Federal credit on $500,000 |
|---|---|---|
| CCPC, within the $6M limit | 35%, refundable | $175,000 |
| CCPC, above the limit | 15%, non-refundable | $75,000 |
| Public or foreign-controlled | 15%, non-refundable | $75,000 |
The same company, in five provinces, at three sizes
Rates are abstract until you put a payroll behind them. Three real-shaped CCPCs, each entirely within the expenditure limits, with the provincial-then-federal arithmetic applied consistently; Quebec is shown across its full stated band, because one number for Quebec would be wrong for somebody.
| Qualifying spend | Quebec | Nova Scotia | British Columbia | Ontario | No provincial credit |
|---|---|---|---|---|---|
| $100,000 | $48,000 to $54,500 | $44,750 | $41,500 | $40,200 | $35,000 |
| $500,000 | $240,000 to $272,500 | $223,750 | $207,500 | $201,000 | $175,000 |
| $1,000,000 | $480,000 to $545,000 | $447,500 | $415,000 | $402,000 | $350,000 |
Those three rows carry one lesson. The gap between best and worst widens with the size of the claim. At $100,000 of qualifying spend the spread between the top of Quebec's band and a no-credit jurisdiction is $19,500. At $1 million it is $195,000, which is a hire.
Two things follow: Quebec's advantage is a large-claim advantage as much as a rate one, and the federal 35% is doing the majority of the work in every column, so optimising the provincial half while filing a weak federal claim is the wrong order of operations.
How do you claim both halves without losing one?
If you are in British ColumbiaFile Form T666 no later than 18 months after year end
Above the $6 million base, claim the non-refundable credit instead.
If you are in AlbertaFile AT1 Schedule 29 within 21 months of fiscal year-end
The federal T661 is a prerequisite within its own 18-month deadline; your two-year base decides the 20% or 8% tier.
If you are in SaskatchewanFile Schedule 403 with the corporate return
CCPCs claim the refundable credit on the first $2 million of annual spend; non-CCPCs face the $1 million annual cap.
If you are in ManitobaIdentify expenditures within 12 months of the return's due date
That shorter window is where Manitoba claimants forfeit the provincial half. The refundable split depends on whether the work is in-house or contracted to a qualifying institute.
If you are in OntarioFile Schedules 566 and 508 within 18 months of fiscal year-end
The record states the OITC is forfeited permanently for the year if the deadline is missed. The ORDTC rides on the same federal qualification.
If you are in QuebecFile form RD-1029.8.CR-T with the CO-17, within 18 months
For taxation years beginning after 25 March 2025 this is the CRIC form. Earlier years claim under the legacy credits with their own deadlines.
If you are in New Brunswick or Nova ScotiaFile Schedule 360 (N.B.) or Schedule 340 (N.S.) with the annual return
No application round in either province. For Nova Scotia, CRA states Schedule 340 is due no later than 18 months after the corporation's tax year-end.
If you are in Newfoundland and Labrador or YukonFile Schedule 301 (N.L., within 12 months of the filing due date) or Schedule 442 (Yukon, within 18 months)
Both credits are CRA-administered and not yet separate records in the GrantCompass catalogue. Newfoundland's 12-month window is shorter than the federal 18 months and is the one most often missed.
If you are in P.E.I., the Northwest Territories or NunavutThere is no provincial schedule. The federal claim is the whole claim
Put your effort into the T661 and its documentation. Nothing provincial exists to file.
- Document the technological uncertainty as the work happens; contemporaneous records are what reviews test.
- File the T2 with the T661 and Schedule 31; timely refundable claims carry a 45-day processing target effective April 2026 when not selected for review.
- The absolute SR&ED reporting deadline, 18 months after tax year end for a corporation. No extensions; unreported expenditures earn nothing.
- Attach your province's schedule: T666, AT1 Sch. 29, Sch. 403, Sch. 360, Sch. 340, Sch. 566 + 508, Sch. 301 (N.L.), Sch. 442 (Yukon), or the CRIC RD-1029.8.CR-T with the CO-17.
Verdict
The filing that matters most is the federal T661, filed within 18 months of your fiscal year-end. Provincial and territorial credits are calculated against the federal qualified SR&ED expenditures, so the federal claim is load-bearing for both halves. Get the federal claim right and the provincial one is mostly a schedule; get it wrong and you usually lose both.
Frequently asked questions
What is the combined SR&ED rate in my province?
For a Canadian-controlled private corporation, the federal enhanced rate is 35% refundable. Nine provinces and Yukon add a credit on top: Quebec at 20% to 30%, Alberta at 8% or 20% depending on whether your R&D spending is growing, Manitoba, New Brunswick, Nova Scotia and Newfoundland and Labrador at 15%, Yukon at 15% plus 5% on amounts paid to Yukon University, British Columbia and Saskatchewan at 10%, and Ontario at 8% refundable plus 3.5% non-refundable. Because the provincial credit reduces the federal expenditure base, the combined cash rate is federal plus provincial minus their overlap: 54.5% at most, in Quebec at the top of its band.
Why is the combined rate less than the sum of the federal and provincial rates?
Because the CRA treats every provincial and territorial R&D credit as government assistance, and government assistance reduces your pool of qualified SR&ED expenditures. The provincial credit is calculated first, then subtracted from the base the federal 35% applies to. The two rates compound rather than add: federal plus provincial minus (federal times provincial). In British Columbia that is 35% plus 10% minus 3.5%, which equals 41.5%, not the 45% headline.
Which provinces and territories have no R&D tax credit?
Three jurisdictions have no provincial or territorial R&D credit, and the GrantCompass catalogue lists no credit there: Prince Edward Island, the Northwest Territories and Nunavut. Your federal claim is the whole claim in those jurisdictions, which simplifies filing but leaves 9.75 percentage points of combined cash rate on the table versus the 15% refundable credits of Newfoundland and Labrador and Yukon alone.
Is the provincial R&D credit refundable?
It depends on the province and, in two provinces, on how you structure the work. Quebec, Alberta, New Brunswick, Nova Scotia, Newfoundland and Labrador and Yukon state refundable credits. Manitoba refunds 50% of its 15% credit on in-house R&D but 100% when the work is contracted to a qualifying Manitoba research institute. British Columbia and Saskatchewan refund their 10% up to an expenditure limit and go non-refundable above it. Ontario's 8% OITC is refundable while its 3.5% ORDTC is not.
What happens if I miss the SR&ED filing deadline?
The federal SR&ED reporting deadline is 12 months after the filing due date of your return, which is 18 months after the tax year end for a corporation, and there are no extensions. An expenditure not reported on Form T661 by that deadline earns no incentive at all. Ontario states the same 18 months and calls missing it permanent forfeiture of the credit for that year. Alberta allows 21 months for its AT1 Schedule 29, but only if the federal T661 was filed within its own 18 months.
Did Quebec's 2025 program change affect my rate?
For taxation years beginning after March 25, 2025, Quebec's legacy R&D credits are replaced by the CRIC, the tax credit for research, innovation and commercialization, stated in the GrantCompass record at a 20% to 30% refundable rate that varies by firm size and region. You can still claim the legacy credits for any taxation year that begins before March 26, 2025. The CRIC claim is filed annually with the Quebec CO-17 return on form RD-1029.8.CR-T, within 18 months of your fiscal year end.
Primary sources for every rate on this page
- CRA: SR&ED tax incentives
- CRA: Assistance and Contract Payments Policy
- Province of British Columbia: SR&ED tax credit
- Alberta: Innovation Employment Grant
- Saskatchewan: R&D Tax Credit
- Manitoba: Manitoba Finance, business tax credits
- Ontario: Ontario Innovation Tax Credit · ORDTC
- Gouvernement du Québec: Tax Credit for Research, Innovation and Commercialization (CRIC)
- Government of New Brunswick: Tax credits
- Nova Scotia Finance: Research and Development Tax Credit
- CRA: Newfoundland and Labrador R&D tax credit · N.L. Finance
- CRA: Yukon research and development tax credit
This page is general information about published program rates, not tax advice. Expenditure limits, phase-out thresholds and refundability all turn on facts specific to your corporation; confirm your own position with your accountant before you file.
SR&ED is one program. You probably qualify for several more
Companies claiming SR&ED are routinely eligible for hiring, training, export and equipment funding they never apply for. GrantCompass checks your eligibility across 973 Canadian programs (674 active in the September 2026 catalogue) and walks you through each application. No account is needed to look.