Scientific Research and Experimental Development (SR&ED) Tax Credit
No fixed amount
Tax Credit
Description:
The scientific research and experimental development (SR&ED) tax credit is for qualifying corporations that carry on SR&ED in B.C. before September 1, 2027.
Qualifying corporations that are Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit of 10% of the lesser of:
The corporation’s SR&ED qualified B.C. expenditures for the tax year, or
The expenditure limit (generally $3 million), as defined in the federal Income Tax Act
Comments on Funding:
A non-refundable tax credit may be claimed for expenditures in excess of the expenditure limit. The non-refundable credit may also be claimed by other qualifying corporations and CCPCs that are not eligible for the refundable credit. The non-refundable credit for a tax year is 10% of the corporation’s SR&ED qualified B.C. expenditure for the year less:
The amount of its refundable credit for that year, and
Any amount renounced for that year
The non-refundable credit can be carried forward 10 years or back three years.
Continuous Intake
Eligibility:
Applicants must be:
1. a corporation with a permanent establishment in British Columbia
during the taxation year,
2. carried on qualifying SR&ED in British Columbia on, or after,
September 1, 1999, and
3, corporation that is not:
a. exempt from British Columbia income tax under section 27 of the Act,
b. controlled directly, or indirectly, by persons whose taxable income:
i. is exempt from British Columbia income tax under section 27 of the
Act, or
ii. is exempt from income tax under Part I of the federal Income Tax
Act (federal Act),
c. an employee venture capital corporation, or
d. a small business venture capital corporation.
Application Steps:
Applicants must complete the British Columbia Scientific Research and
Experimental Development Tax Credit form (Form T666) and submit it to the CRA
with your T2 Corporation Income Tax Return.
For other details about the application process, contact:
Phone: 250-387-3332 (Victoria)
Tool Free: 1-877-387-3332 (in Canada)
Email: ITBTaxQuestions@gov.bc.ca
Documentation Needed:
Applicants must submit:
1. British Columbia Scientific Research and Experimental Development Tax Credit form
2. T2 Corporation Income Tax Return
Other Things to Note:
About the author
Maurice
