Engineering & Industrial
Turn Engineering Challenges Into Non-Dilutive Scaling Capital
Every time your team solves a problem that has no off-the-shelf answer, a novel load-bearing design, a proprietary automation cell, a material that survives where others fail, you are doing exactly what SR&ED rewards. Innovotis recovers up to 64% of your eligible R&D wages as cash and now, in 2026, the capital equipment behind that work qualifies again too. We translate shop-floor and field-site engineering into airtight claims that hold up to CRA review, then bridge the wait so you can reinvest before the refund even lands.
Why It Matters
How SR&ED creates value for engineering
A True Scale Engine for Engineering
Scaling means heavy upfront spend on talent, prototyping, and specialized equipment. SR&ED de-risks that investment by returning up to 64% of eligible R&D salaries as a refundable credit, capital you keep, with no equity given up.
Capital Expenditures Qualify Again in 2026
For the first time in over a decade, lab equipment, specialized machinery, and dedicated R&D tooling are eligible for tax credits. The big purchases that engineering innovation depends on now work harder on your return.
Longer Runway at the Full 35% Rate
The enhanced refundable rate now applies to the first $6M of eligible spend (up from $3M), and the phase-out threshold rises to $75M in taxable capital, so high-growth firms hold the top rate far longer.
Fuel for Higher-Margin Contracts
Reinvest refunds into the proprietary technology and advanced capability that lets you bid on more complex, higher-value domestic and international projects your competitors can't deliver.
2026 Incentives
The credits you can stack
| Incentive | Rate | Detail |
|---|---|---|
| Federal Enhanced ITC | 35% | Refundable on the first $6M of eligible expenditures, raised from $3M in 2026. |
| Ontario Innovation Tax Credit (OITC) | 8% | Refundable credit for small-to-medium engineering businesses, stacked on top of the federal ITC. |
| Ontario R&D Tax Credit (ORDTC) | 3.5% | Non-refundable credit that offsets Ontario provincial taxes for added recovery. |
of eligible R&D wages recoverable as cash for Ontario engineering firms
Eligibility
What qualifies in engineering
If your team is resolving genuine technological uncertainty, this work likely counts. Here's what we typically see qualify.
Structural Engineering
Developing novel seismic-resistant materials or unique load-bearing designs to overcome the constraints of irregular sites and unproven conditions.
Mechanical & Manufacturing
Designing proprietary automation and robotics, or engineering measurable gains in thermal efficiency for industrial HVAC and process systems.
Environmental & CleanTech
Building novel carbon capture processes or advanced waste-to-energy conversion systems where the technical outcome is genuinely uncertain at the outset.
Materials Science
Testing new alloys and composites to overcome failure points in extreme temperature, load, or corrosion environments.
Shop Floor & Field Site Innovation
SR&ED is not just for labs. Iterative prototyping, custom tooling, and on-site engineering trials to resolve real-world technical obstacles all count when documented properly.
What Our Clients Say
Results in Engineering
Innovotis Consulting helped us uncover innovation opportunities within our business that we had overlooked for years. Their ability to understand both the technical and financial aspects of our operations was impressive. The team guided us through the SR&ED process with clarity and professionalism, allowing us to recover significant capital that we reinvested into new product development and hiring. They became more than consultants, they became trusted advisors.
Innovation requires capital, and Innovotis helped us unlock funding that directly supported our mission of developing sustainable technologies. Their expertise in SR&ED and innovation incentives provided strategic value beyond compliance. They consistently delivered exceptional service and became a valuable extension of our team.