What expenditures are eligible for SR&ED investment tax credit?

Once you determine a project that qualifies for SR&ED investment tax credit, you can claim the following expenditure associated with the project:

  • SR&ED salary or wages
  • Expenditure for materials for SR&ED
  • Contract expenditure for SR&ED
  • SR&ED lease expenditure
  • SR&ED overhead and other expenditures (traditional method only)
  • Third-party payments
  • SR&ED capital expenditure

To calculate your SR&ED expenditure, you have to choose between the traditional method and proxy method.

Additional information