Video 2: Does My Work Qualify? – Understanding SR&ED Eligibility
Ticking Off the Three Boxes
When it comes to SR&ED, the CRA looks for three things. Think of them as three boxes you need to tick. If your project hits all three, you’re in good shape. If not, it probably won’t qualify.
1. Technological Uncertainty
What it means: You hit a problem where the usual methods didn’t work. There wasn’t a clear, known solution you could just look up or buy off the shelf.
Examples that qualify:
Developing a gluten-free bread recipe that holds structure (food science challenge).
Creating a machine-learning model that had to handle messy, unpredictable data no one knew how to solve.
Examples that don’t qualify:
Debugging a software error using known fixes.
Swapping in a new ingredient when the substitution was straightforward.
2. Systematic Investigation
What it means: You didn’t just guess once and give up. You tested ideas in a structured way—form a hypothesis, try it out, measure the results, adjust, repeat.
Examples that qualify:
Running multiple prototypes of a new manufacturing process, documenting what worked and what failed.
Iterating on an algorithm with different approaches and measuring outcomes.
Examples that don’t qualify:
Trial and error with no records.
Jumping straight to a solution without testing alternatives.
3. Technological Advancement
What it means: Your work pushed knowledge forward. Maybe you didn’t “solve” the problem completely, but you closed the gap and learned something new that wasn’t known before.
Examples that qualify:
Showing that a certain design for a medical device doesn’t work — and proving why.
Finding a new combination of materials that improves product durability.
Examples that don’t qualify:
Applying a standard method you already knew would work.
Customizing off-the-shelf software without any new discoveries.
The Bottom Line? Gotta Check ‘Em All
For your project to qualify, it needs to check all three boxes:
There was genuine uncertainty.
You investigated systematically.
You advanced knowledge or capability.
Official Guidance from CRA
We’ve explained SR&ED eligibility in plain language to help you get the big picture. But remember—the CRA’s own guide is the definitive source.
