Scientific Research and Experimental Development (SR&ED) Tax Credit
The B.C. scientific research and experimental development (SR&ED) tax credit is for qualifying corporations that incur BC qualified expenditures.
Qualifying corporations that are Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit.
Offered by Province of British Columbia
Amount
Refundable tax credit of 10% of the lesser of the corporation's SR&ED qualified BC expenditure or the expenditure limit ($6 million); non-refundable credit of 10% of SR&ED qualified BC expenditure less the refundable credit and any amount renounced
Quick eligibility check
Who can apply
The B.C. scientific research and experimental development (SR&ED) tax credit is for qualifying corporations that incur BC qualified expenditures.
Qualifying corporations that are Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit. Budget 2026 expanded eligibility for the refundable credit to eligible Canadian public corporations (ECPCs) effective for the tax years that begin on or after December 16, 2024.
The non-refundable credit may be claimed by all qualifying corporations.
You are eligible to claim the British Columbia SR&ED tax credit for a taxation year if:
you are a corporation with a permanent establishment in British Columbia
during the taxation year,
you carried on qualifying SR&ED in British Columbia on, or after,
September 1, 1999, and
your corporation is not:
exempt from British Columbia income tax under section 27 of the Act,
controlled directly, or indirectly, by persons whose taxable income:
° is exempt from British Columbia income tax under section 27 of the Act, or ° is exempt from income tax under Part I of the federal Income Tax Act (federal Act),
an employee venture capital corporation, or
a small business venture capital corporation.
Effective February 21, 2007, you may be eligible to claim a proportionate share of a partnership’s tax credit if you are a qualifying corporation that is an active member of the partnership.
Qualifying Projects and Expenditures Qualifying Projects To qualify for the British Columbia tax credit, the SR&ED work you do must meet the requirements for the federal SR&ED tax credit.
Not eligible:
your corporation is not
exempt from British Columbia income tax under section 27 of the Act
controlled directly, or indirectly, by persons whose taxable income
is exempt from British Columbia income tax under section 27 of the Act, or ° is exempt from income tax under Part I of the federal Income Tax Act (federal Act
an employee venture capital corporation, or
a small business venture capital corporation
Please note: Individuals are not eligible for the British Columbia SR&ED tax credit
About the funding
Qualifying corporations that are CCPCs or ECPCs may claim a refundable tax credit of 10% of the lesser of:
- The corporation's SR&ED qualified BC expenditure for the tax year, or
- The expenditure limit, as defined in the federal Income Tax Act. Effective for tax years that begin on or after December 16, 2024, the expenditure limit is increased to $6 million
A non-refundable tax credit may be claimed for expenditures in excess of what has been claimed for the refundable tax credit.
Show all funding details
The non-refundable credit for a tax year is 10% of the corporation's SR&ED qualified BC 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.
Increasing the phase-out threshold for the prior-year taxable capital for determining a CCPC's expenditure limit to $15 million. The expenditure limit phases out completely once the prior-year taxable capital reaches $75 million
How much can be claimed?
The refundable credit cannot exceed 10% of the expenditure limit as determined by the federal Income Tax Act. The expenditure limit is increased from $3 million to $6 million for tax years that begin on or after December 16, 2024. This limit is determined according to subsection 127(10.2) and subsection 127(10.6) of the federal Income Tax Act and may be reduced as described in the Canada Revenue Agency's SR&ED Investment Tax Credit Policy.
The amount of annual non-refundable tax credit that may be deducted in a tax year is limited to the amount of the corporation's income tax payable for that year.
Restoring eligibility of capital expenditures as BC qualified expenditures
You can access this self-assessment tool at www.cra-arc.gc.ca /txcrdt/sred‑rsde/ssssmnt/menu-eng.html Qualifying Expenditures You may claim many of the costs incurred for qualifying SR&ED in a taxation year, such as:
wages for staff doing the SR&ED work,
costs of materials used in performing SR&ED,
costs of new machinery and equipment purchased for SR&ED,
costs of SR&ED contracted out,
lease costs (excluding building leases or rent),
third party payments to organizations, such as universities and colleges, and
certain overhead costs related to SR&ED, or a proxy for these costs.
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Investment Tax Credits (ITC) on Qualified Expenditures for Scientific Research and Experimental Development (SR&ED) | Tax Credit | Non-refundable ITC of 15% of the SR&ED qualified expenditure pool | Open |
| Scientific Research and Experimental Development Tax Incentive Program (SR&ED) | Tax Credit | Investment tax credit at a basic rate of 15% | Open |
