Recover up to 49% of your R&D spend.
Scientific Research & Experimental Development (SR&ED) is Canada's most generous lever for funding innovation. Hubvention structures, drafts and defends your claim — from eligibility to cash.
What is SR&ED?
A federal tax program administered by the CRA that lets Canadian companies recover a meaningful share of their R&D investments as a refundable or tax-applied credit.
- 01
Basic research
Work advancing scientific knowledge without a specific commercial application in view.
- 02
Applied research
Improving existing materials, devices, products or processes against a defined objective.
- 03
Experimental development
Systematic work to create or materially improve products, processes or technologies.
Industry isn't the test — the nature of the work is. A machine shop, an engineering firm or a software team can all qualify.
Does your company qualify?
Four objective criteria decide eligibility. If your work meets the first three and you operate a Canadian taxable entity, you almost certainly qualify.
- 01
Technological uncertainty
The outcome can't be predicted by a qualified professional from public knowledge. The uncertainty has to exist for your team — you don't need to invent the next breakthrough.
- 02
Systematic investigation
Hypotheses formed, tests run, results analyzed and documented. Failures count as much as wins — the method matters, not the outcome.
- 03
Technological advancement
The work seeks new knowledge or technical capability — even if the product ships, is shelved, or ultimately fails.
- 04
Canadian taxable entity
Canadian-controlled private corporation (CCPC), a Canadian subsidiary of a foreign corporation, or a sole proprietor subject to Canadian tax.
What doesn't qualify
- Market research, commercial feasibility or customer satisfaction studies
- Routine quality control or compliance testing
- Research in social sciences or the humanities
- Prospecting, exploration or drilling for oil and gas
- Staff training, sales promotion, style changes
What you can claim.
Five categories of spend qualify for SR&ED. Proper structuring typically recovers 30–49% of the total.
- 100%
Salaries & benefits
R&D staff — developers, engineers, researchers, technicians — prorated by the time they spend on qualifying projects.
- 80%
R&D contractors
Fees paid to Canadian consultants for R&D work performed on your behalf — qualified at 80% of the amount paid.
- 100%
Materials & supplies
Materials consumed or transformed in the work — prototypes, test inputs, lab consumables.
- eligible
R&D equipment
Since December 2024, equipment used for R&D is once again eligible for the federal credit — a major win for manufacturers.
- 55%
Overhead (proxy)
Simplified method: add 55% of R&D salaries as overhead — no need to split out rent, utilities or office supplies.
Typical qualifying projects
- Developing a software algorithm or architecture whose at-scale performance is uncertain
- Designing a new manufacturing or assembly process
- Formulating a new material, alloy or chemical compound
- Automating a production line under novel technical constraints
- Integrating AI or machine-learning components into an existing product
- Engineering the energy-efficiency of an industrial asset or building
Estimate your credit in 2 minutes.
Adjust the parameters below for an estimate based on 2025 federal and provincial SR&ED rates.
One conversation to clarify your potential.
30 minutes with a Hubvention expert. We assess your work, estimate the recoverable amount and hand back a filing plan — no commitment, no cost.
- Contingent compensation
- 99% success rate
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