SR&ED Tax Credits¹ – 2016
|2016||Eligible Persons||Credit Rate||Refund Rate2|
|Federal||CCPC||35% of the first $3M3 in eligible expenditures||
|15% of excess||40% for eligible corporations4|
|Other corporations and individuals||14%||100%|
|Corporations||8%9 of the first $3M10 in eligible expenditures||100%|
1 Limits and ceilings are based on the preceding year and applicable to the group of associated corporations. Alberta, British Columbia, Manitoba, Newfoundland and Labrador, Nova Scotia, Saskatchewan and Yukon also have SR&ED credits.
2 Unused credits may be carried back three years or forward 20 years.
3 The limit is progressively eliminated when taxable income is between $500,000 and $800,000 or taxable capital used in Canada is between $10M and $50M.
4 0% if taxable income is greater than $500,000 or when the taxable capital used in Canada exceeds $50M.
5 An excluded expenditures threshold varying from $50,000 to $225,000 applies annually, based on total asset value. Other credits offered in Quebec: tax credit for university research or research carried out by a public research centre or a research consortium, tax credit for private partnership pre-competitive research and tax credit for fees and dues paid to a research consortium.
6 The $3M ceiling is reduced by the excluded expenditures threshold. Rate gradually decreases from 30% to 14% when world assets are between $50M and $75M.
7 Other credit offered in Ontario: the Ontario Business Research Institute Tax Credit.
8 Since June 1, 2016 (4.5% before that date).
9 Since June 1, 2016 (10% before that date).
10 Ceiling is progressively eliminated when taxable income is between $500,000 and $800,000 or taxable capital used in Canada is between $25M and $50M.