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