SR&ED pays a refundable investment tax credit on eligible experimental development work. The federal enhanced rate for Canadian-controlled private corporations is roughly 35 percent on the first $3 million of eligible spend, with provincial credits stacking on top — about 12 percent in Alberta on the federal pool.
What this estimate does and does not do
The estimator applies standard proxy rates: salary costs (the largest credit driver) attract a proxy overhead of 55 percent, and the credit is computed on the pool of eligible expenditures your accountant builds. It does not judge eligibility — only a technical narrative and CRA's review process do that.
Treat the output as a planning number for cash-flow timing, not a filing: credits arrive 12 to 18 months after fiscal year-end in practice.
Frequently asked questions
Is SR&ED refundable if my company loses money?
For CCPCs, yes — the enhanced 35 percent credit on the first $3 million is refundable and payable even without taxable income, which is why it functions as a grant for early-stage companies.
Connectica provides information only, not financial, investment, legal or tax advice. Figures on this page are estimates and generalizations — confirm anything that matters with the relevant professional or authority.