Turn process improvements into tax credits.
SR&ED is Canada’s federal tax credit for eligible research and development work. Manufacturers routinely do eligible work on the shop floor without calling it R&D. Trials, prototypes and failed runs can all count.
No credit, no fee.
Free eligibility check
Examples of eligible work
- Process improvements to increase yield, speed or consistency
- Prototyping new products, tooling or fixtures
- Materials testing and formulation changes
- Automation and controls where the outcome was uncertain
- Scaling a lab or pilot process to production
Common mistakes
- Not tracking trial runs and scrap from experiments
- Assuming only engineers' time counts — technicians and operators can too
- Claiming routine quality control or standard testing
- Leaving out eligible materials consumed in experimentation
- Filing without linking costs to specific projects
Worked example
6 engineers/technicians at $85,000 CAD, 35% SR&ED time, $40,000 CAD in materials consumed in prototyping and trials. Ontario CCPC.
| SR&ED salaries | $178,500 CAD |
|---|---|
| Overhead proxy (55%) | $98,175 CAD |
| Contractors (80%) | $0 CAD |
| Materials | $40,000 CAD |
| Ontario credit (8%) | $25,334 CAD |
| Federal credit | $101,969 CAD |
| Total credit | $127,303 CAD |
| Our fee (15%) | $19,096 CAD |
| You keep | $108,208 CAD |
Illustrative estimate for a CCPC. Not tax advice.
What CRA expects to see
- Project-level records created at the time of the work: tickets, commits, pull requests, design docs, test and benchmark results
- A clear statement of the technological uncertainty at the start
- The hypotheses you tested and what happened, including what failed
- Timesheets or a reasonable time-allocation method for each person claimed
Questions we hear often
Do materials count?
Materials consumed or transformed during SR&ED can be eligible, but must be tied to specific experimental work.
Does shop-floor staff time qualify?
Time spent directly running experiments or building prototypes can qualify, even for non-engineers.
What evidence should we keep?
Trial logs, test results, drawings, photos and notes on what didn't work. We help you set this up going forward.
Find out what your R&D is worth.
Estimate your credit or book an assessment.