SR&ED ACADEMY

Building Your Claim Package

Technical Narrative: Section Breakdown


What Did You Do? Why is it Eligible?

Each section of the technical report gives you a limited number of words to explain months of complex R&D. This constraint forces you to strip away everything but the essentials—the problem you couldn’t solve with existing methods, the work you did to push past it, and the knowledge you gained along the way.

A few hints before we dive in:

  • Review SRED Project Definition → did you break down your projects in ways that make sense? If you really can’t hit the word limit, you may be trying to claim one big project that is really 2 or 3 projects. 
  • Consider a professional writer/SR&ED advisor → you might want to consider bringing in a professional writer to distill the story and write in the tone and style CRA expects. 
  • Keep eligibility in mind → as you write, remember that a SRED project isn’t the full business project. Edit out anything too ‘marketing’ or ‘business/aspirational’. Your narrative should always be related to those three boxes you are ticking – uncertainty, investigation, and advancement.
Answer the questions asked and be absolutely clear about focusing on your SR&ED project, not your business goals. 

Let’s look at each section in the technical narrative:

Section 242 – Technological Uncertainty

What scientific or technological uncertainties did you attempt to overcome? (Maximum 350 words)

Section 244 – Systematic Investigation

What work did you perform in the tax year to overcome the scientific or technological uncertainties described in line 242 (Summarize the systematic investigation or search) (Maximum 700 words)

Section 246 – Technological Advancement

What scientific or technological advancements did you achieve or attempt to achieve as a result of the work described in line 244? (Maximum 350 words)

Summary/Action Steps

Your technical narrative sets the tone for your entire SR&ED claim. If it’s strong, CRA reviewers will trust the rest of your submission. If it’s vague or off-target, they’ll dig deeper—and your audit risk increases.

Done well, this section becomes your strongest proof that your team is doing genuine R&D and deserves to be recognized for it.

The T661 form is different from a business or technology roadmap you might include in a grant proposal. Focus on clear, factual writing that proves you pushed beyond standard practice and generated new knowledge.

Official Guidance from CRA

CRA doesn’t provide a writing style guide, but does state that the technical narrative should be written in “the technical language and style of those who did the actual work, or who understand and are familiar with the work”.

Check the official CRA page here: Guide to Form T661

NEXT Steps

  • Discuss with your team who will be writing the technical narrative, who will be editing/reviewing them and if you will be working with a SRED advisor or professional writer.