The scientific research and experimental development (SR&ED) tax credit is designed to encourage businesses to conduct research and development activities in British Columbia. The credit is an incentive for systematic research carried out for scientific or technological advancement.
The tax credit can be claimed by qualifying corporations that conduct scientific research and experimental development in the province before September 1, 2027.
B.C. SR&ED tax credit amounts and limits
Qualifying Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit of 10% of whichever is lower: the qualifying expenditures the corporation has made for SR&ED in B.C. over the course of the tax year, or the expenditure limit defined in the federal Income Tax Act.
Corporations that are not eligible for the refundable credit may claim the non-refundable credit. The non-refundable tax credit is 10% of the qualifying expenditures the corporation has made for SR&ED in B.C. over the course of the tax year, minus the amount of refundable credit it has claimed for that year, if any, and any amount renounced for that year.
How to claim the B.C. scientific research and experimental development tax credit
Corporations can claim the B.C. SR&ED credit by completing the British Columbia Scientific Research and Experimental Development Tax Credit form and submitting it along with their T2 Income Tax Return.
The amount of refundable credit claimed should be entered on line 674 of Schedule 5, Tax Calculation Supplementary – Corporations, while the amount of non-refundable credit claimed should be entered on line 659.
The SRED tax credit must be claimed no later than 18 months after the end of the tax year during which the corporation incurred the expenditures.
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Businesses in Canada can benefit from a wide variety of tax credits and government incentives. Making use of them can significantly benefit your bottom line, but it can be difficult to keep track of them all, particularly at tax time. That’s where a good corporate tax accountant can make all the difference.
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Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
