Question 1

What is the SR&ED tax credit program?

Accepted Answer

SR&ED (Scientific Research and Experimental Development) is Canada's largest federal R&D incentive, administered by the Canada Revenue Agency. It returns over $4 billion to Canadian businesses every year as tax credits and cash refunds for work that advances science or technology. It is an entitlement, not a grant, so any company doing eligible R&D can claim it.

Question 2

Does my business qualify for SR&ED?

Accepted Answer

Most companies that solve technical problems qualify and never realize it. Eligible work must meet three tests: a technological advancement you are trying to achieve, a technological uncertainty you cannot resolve with standard practice, and a systematic investigation to work through it. A failed project can still qualify, the attempt is what matters. We confirm eligibility for free on a discovery call.

Question 3

How much money can I get back through SR&ED?

Accepted Answer

Canadian-controlled private corporations earn a 35% refundable federal credit on the first $6 million of eligible spend. Stacked with Ontario credits, roughly $60,000 or more comes back for every $100,000 of eligible R&D salary. The exact amount depends on your salaries, materials, subcontractors, and overhead tied to the work.

Question 4

What activities and expenses are eligible?

Accepted Answer

Eligible work includes basic research, applied research, and experimental development. Claimable costs include the salaries of employees doing the R&D, materials consumed or transformed, subcontractor fees, a portion of overhead, and equipment leased for the work. Capital expenditures are eligible again as of 2026.

Question 5

What does not qualify for SR&ED?

Accepted Answer

Routine engineering, quality control, routine testing and troubleshooting, market research and sales promotion, general administration, mineral and oil or gas exploration, and the commercial production of a finished product are all excluded. If you could confidently predict the result without experimenting, there is no technological uncertainty and it likely will not qualify.

Question 6

How long does it take to receive my refund?

Accepted Answer

A well-prepared claim filed with your tax return is typically refunded by the CRA in about 90 days. If you cannot wait, our bridge financing can advance capital against an approved or expected refund in days rather than months.

Question 7

What is SR&ED bridge financing?

Accepted Answer

Government credits are valuable but slow. Bridge financing lends you the value of your approved or expected SR&ED refund at competitive rates, so you get liquidity now instead of waiting 6 to 12 months for the CRA. It is non-dilutive, so you keep full ownership of your business.

Question 8

How does Innovotis charge for its services?

Accepted Answer

Most engagements are contingency-based, which means we only earn when you receive funding. Our success is tied directly to yours, and our rates are structured to stay accessible for small and mid-sized businesses. We confirm all fees in writing before any work begins.

Question 9

What happens if the CRA audits or denies my claim?

Accepted Answer

We prepare every claim to stand up to CRA review, with airtight technical and financial narratives and supporting evidence. If the CRA reviews or challenges your claim, our technical and financial specialists handle the response and stand with you through the process. We also take on second opinions for claims that were denied or under-claimed elsewhere.

Question 10

How is IRAP different from SR&ED?

Accepted Answer

SR&ED is a tax credit you claim after the work is done. IRAP (the NRC Industrial Research Assistance Program) is upfront, non-dilutive grant funding awarded before or during a project. The two work well together, and we manage both end to end so you capture every dollar available.

Question 11

Which industries do you work with?

Accepted Answer

We started in Life Sciences and Medical Professional Corporations and now serve every innovation-driven sector in Canada, with dedicated expertise in software and IT, doctors and clinics, engineering, food and beverage, and pharma and clinical research.

Question 12

How do we get started?

Accepted Answer

Book a free 30-minute discovery call. We review your activities, confirm which programs you qualify for, and map the funding available to you, at zero cost and no obligation. If it is a fit, we handle the rest.

SR&ED, financing, and funding, answered

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