The Scientific Research and Experimental Development Program (SR&ED) is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada. It is the largest single source of federal government support for industrial R&D. The SR&ED program gives claimants cash refunds and/or tax credits for their expenditures on eligible R&D work done in Canada.  For further information, click here.

Recent provincial government support was affirmed in Budget 2009, which announced the Manitoba Research and Development Tax Credit will be made refundable for corporations that work on new technologies with research institutes in Manitoba.  For large Canadian and/or foreign controlled corporations regardless of size or whether they are public or private, the rate of the tax credit is 20% and the credit is non-refundable. A non-refundable tax credit can be used to offset Canadian federal taxes payable in the current year, in the previous three years, and/or in the next 20 years. There are no limits on R&D expenditures, taxable income or taxable capital for companies claiming the 20% tax credit rate.  At 20 per cent, Manitoba has the highest research and development tax credit in the country. For further information, please click here.