Provincial and Territorial Research Development (R&D) Tax Credits

Learn more about what the R&D tax credits have to offer in your province or territory.

SR&ED is a federal program; however, each province has its own tax credit that is based on the federal program. For a detailed explanation of a specific provincial or territorial tax credit, see table below.

Jurisdiction Type Administered By Rate Schedule Number
Newfoundland and Labrador Refundable CRA 15% NL Schedule 301
Nova Scotia Refundable CRA 15% NS Schedule 340
New Brunswick *Refundable CRA 15% NB Schedule 360
Ontario (OITC) *Refundable CRA 8% max. ITC $240,000 unless PUC is $25 million ON Schedule 566
Ontario (OITC) *Refundable CRA 20% max. ITC $4 million ON Schedule 568
Ontario (ORDTC) Non-Refundable CRA 3.5% ON Schedule 508
Manitoba *Refundable & Non-refundable CRA 3.5% MB Schedule 380
Alberta Refundable CRA 10% for max. ITC $400,000 for expenditures incurred before January 1, 2020.
8% or an enhanced rate6 of 20% for expenditures incurred after December 31, 2020.
AB Schedule 9 (for activities before January 1, 2020)
AB Schedule 29 (for activities after December 31, 2020)
British Columbia *Refundable CRA 10% for max. ITC $300,000 Non-refundable ITC for expenditures over limit BC Schedule 425
Yukon *Refundable CRA 15% Additional 5% if paid to Yukon College YT Schedule 442
Quebec *Refundable Revenu Quebec 30% for small corporations, which gradually reduces to 14% for larger corporations. RD-1029.7

1. If prior year taxable income exceeds $800,000, OITC is not claimable

2. Available only to Corporations and corporations that are members of partnerships that work with eligible research institutes (ERIs: Universities, Colleges, Hospital Research Institutes, Other Organizations)

3. 50% of the total tax credits earned are refundable and the other 50% is non-refundable. The credit is fully refundable for eligible expenditures after 2009 for corporations that work with eligible institutes in Manitoba

4. Refundable until an expenditure limit of $1M. Any expenditures exceeding the expenditure limit will earn a 10% non-refundable credit. Refundable only for CCPC, otherwise non-refundable.

5. The Alberta R&D Tax Credit phased out after December 31, 2019. A program called the Innovation Employment Grant was opened to replace the Alberta R&D credit and covers activities that occur after December 31, 2020. This grant is claimable by completing Schedule 29 and follows the same eligibility criteria as the SR&ED program.

6. Enhanced rate of 20% is available for R&D spending that exceeds the corporations base spending level. Base spending level determined by calculating the corporations average qualified R&D expenditures in the previous two years.

7. Refundable only for CCPC, otherwise non-refundable.

8. Many specific rules. Quebec Canadian-controlled corporations with less than $50 million in assets (small corporations), on an associated basis, can claim the 30% rate on up to the spending limit of $3 million of R&D wages, on an associated basis. For those with assets between $50 million and $75 million (large corporations), the 30% rate is gradually reduced to 14%. The rate is 14% for all other taxpayers.
Expenses must be greater than $50k for smaller corporations and $225k for larger corporations.

9. In Newfoundland and Labrador, Quebec and the Yukon, individuals can also claim the provincial credits. Credits can be fully claimed against a taxpayer’s provincial or territorial income tax

10. For Nova Scotia, New Brunswick, OBRTIC, Manitoba, Saskatchewan and British Columbia, corporations that are members of a partnership also have availability to the provincial tax credit