SR&ED for the trades: do you qualify?
Most contractors assume SR&ED is for tech companies. It is not. If you have solved a real technical problem, you may be leaving refundable credits on the table.
Federal credits plus Ontario's refundable OITC.
SR&ED is a federal program delivering roughly $4.2 billion a year to more than 20,000 claimants, for experimental development performed in Canada. On top of the federal credit, work done in Ontario can qualify for the Ontario Innovation Tax Credit, an 8% refundable credit, plus the Ontario R&D Tax Credit. Refundable means cash back, not just a deduction.
The bar is technical uncertainty, not effort.
- Developing or optimizing a welding, joining or fabrication technique.
- Engineering a custom method to meet a technical challenge on a difficult build.
- Prototyping tooling, jigs or assemblies where the outcome was not certain.
- Materials or process experiments to hit a durability or performance target.
Spot it, document it, claim it.
I spot the qualifying work you would overlook, document it to survive CRA review, and coordinate the claim, including financing to bridge the refund if you need the cash sooner. The test is technical uncertainty and systematic investigation, not we worked hard.
Think you have solved something hard?
Book a free eligibility check and we will find out.
General information for Ontario businesses, current at the time of writing. Not tax, legal or accounting advice. Confirm your situation with a professional. Steel City CFO can help.