Significant Enhancements to SR&ED Program Announced (2024)
Significant Enhancements to SR&ED Program Announced Ahead of Fall Economic Statement
Toronto, ON – December 13, 2024 – Deputy Prime Minister and Minister of Finance, Chrystia Freeland, today unveiled a series of substantial enhancements to the Scientific Research and Experimental Development (SR&ED) program during a keynote address at the Toronto Stock Exchange. These changes, set to be detailed in the upcoming Fall Economic Statement, aim to bolster Canada’s innovation landscape by providing enhanced support and incentives for businesses engaged in research and development.
Key Highlights of the Announcement:
- Increased Spending Limits for CCPCs: The spending limit for Canadian-Controlled Private Corporations (CCPCs) participating in the SR&ED program will rise from 3 million to 4.5 million, allowing greater investment in R&D activities.
- Expanded Taxable Capital Phase-Out Range: The phase-out range for taxable capital will be increased from 10−50 million to 15-75 million, enabling larger enterprises to take advantage of SR&ED benefits.
- Enhanced ITC for Canadian-Controlled Public Companies: Canadian-Controlled Public companies will now qualify for an enhanced Investment Tax Credit (ITC) of 35%, up from the previous 15%, making the SR&ED program more accessible to a broader range of businesses.
- Reintroduction of Capital Expenditures: The SR&ED program will once again permit capital expenditures, a provision that had been unavailable since 2014. This update allows businesses to incorporate capital costs into their R&D efforts.
The detailed Fall Economic Statement, to be released Monday, December 16, 2024, will provide further insights into these measures and outline the government’s strategic vision for advancing Canada’s competitive edge in the global market.
Listen to the announcement here (starting at 3 minutes): Deputy PM Freeland Makes an Announcement in Toronto – December 13, 20241
Visit the official Department of Finance News Announcement on the Government of Canada website to learn more: Reforming and Enhancing the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program – Canada.ca 2
About the SR&ED Program
The Scientific Research and Experimental Development (SR&ED) program is Canada’s largest federal tax incentive program, encouraging businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada.
