How Should Canada Improve R&D Tax Credits for Businesses?
Official title: Consultation on proposed enhancements to the Scientific Research Experimental Development (SR&ED) program
The Canada Revenue Agency wants to make it easier for businesses to claim tax credits for research and development. Right now, companies often wait until after they've spent money to find out if their projects qualify. The CRA is testing a new approach: get approval before you start, so you know upfront what counts.
Why This Matters
Work for a company that does research or builds new products? This affects how your employer gets money back from the government. Simpler claims could mean more investment in Canadian innovation—and more R&D jobs staying here.
What Could Change
Businesses could get pre-approval for R&D projects before spending money, eliminating the guesswork. The T661 claim form may be simplified. Review processes could be streamlined to reduce paperwork and back-and-forth with the CRA.
Key Issues
- Should businesses be able to get pre-approval for R&D projects before they start?
- How can the claim review process be streamlined to reduce administrative burden?
- What improvements are needed to the T661 SR&ED claim form?
How to Participate
- This consultation is by invitation only. The CRA invited about 20 claimant organizations to participate in virtual discussions. Phase 2 is currently open for organizations that participated in Phase 1.
- Learn more about the SR&ED tax incentive program to understand the current process.