Canada just doubled its SR&ED refundable tax credit, and many businesses still do not know it happened.
On March 26, 2026, Bill C-15 received Royal Assent, enacting a major expansion of the Scientific Research and Experimental Development (SR&ED) program. The changes apply to tax years that begin after December 15, 2024. These are now law, not proposals.
The enhanced-rate expenditure limit, the amount of qualifying spending that earns the top 35 percent refundable credit, was raised from $3 million to $6 million. In plain terms, the maximum refundable credit a qualifying company can collect each year effectively doubled, from about $1.05 million to about $2.1 million.
That is not the only improvement. The taxable-capital phase-out range, which determines how much of the enhanced rate larger companies can access, widened from the old $10 million to $50 million band to a new $15 million to $75 million band. That means more mid-sized firms now qualify for the enhanced rate. Capital expenditures are eligible again for property acquired after December 15, 2024, reversing a restriction that had been in place since 2012. And for the first time, eligible Canadian public corporations can access the 35 percent refundable credit, which used to be reserved for Canadian-controlled private corporations.
There is more money on the table than there was a year ago, and the door is open to more companies. If you build products, software, or processes and solve genuine technical problems along the way, it is worth checking whether you qualify.
For the full, fully sourced picture of the program, see the State of SR&ED 2026 report. And when you are ready to claim, our flat-fee pricing means you keep more of the larger credit instead of handing a percentage to a consultant.
Bill C-15 received Royal Assent on March 26, 2026. The changes apply to tax years that begin after December 15, 2024.
The maximum refundable credit for a qualifying company is now approximately $2.1 million per year, up from $1.05 million before Bill C-15.
Yes. For the first time, eligible Canadian public corporations can access the 35 percent refundable rate, which was previously reserved for Canadian-controlled private corporations.
Sources: Bill C-15, Royal Assent March 26, 2026; Canada Revenue Agency SR&ED program statistics.
About the Author
Jude Brown is a co-founder and CEO of SRED.ca. He has helped Canadian businesses recover millions in SR&ED refundable tax credits and writes on SR&ED policy and how Canada’s R&D incentive program works in practice.
Do you have a SRED question? Planning for the future or perhaps you want to know how much your claim might be? Don’t worry, our CPA is always ready to answer any question. Get a SRED expert in your corner.
Have a question? We’d love to help. If you don’t have a SR&ED expert in your corner, doesn’t it make sense to have one?
