Canada's Budget 2025 raised the expenditure limit for the enhanced 35% refundable SR&ED tax credit from $3 million to $6 million of qualifying R&D spending per year (a two-step increase, first to $4.5M then $6M), applying to taxation years beginning on or after December 16, 2024. A qualifying Canadian-controlled private corporation (CCPC) can now claim a refundable credit of up to about $2.1 million per year on eligible R&D. The budget also extended access to the enhanced 35% rate to certain Canadian public corporations.
Why this matters for founders
For an incorporated Canadian founder doing product or technical R&D, this roughly doubles the refundable cash you can pull from SR&ED even before turning a profit, since the enhanced credit is refundable from year one. Track eligible salaries, contractor costs, and materials carefully and file the SR&ED claim with your T2 to capture the larger refund.
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SR&ED enhanced 35% credit limit doubles to $6M; CRA adds pre-claim approval
Under Bill C-15 (Royal Assent 26 March 2026), the enhanced 35% refundable SR&ED investment tax credit's annual expenditure limit doubled from $3M to $6M, with the phase-out taxable…
Canada expands SR&ED: 35% credit now covers up to $6M in R&D spend
Bill C-15 (Royal Assent March 26, 2026) doubled the enhanced-rate SR&ED expenditure limit from $3M to $6M, keeping the 35% refundable investment tax credit and raising the taxable-…
NZ R&D Tax Incentive passes $10b; in-year payments coming to boost cashflow
On 21 July 2026 the NZ government announced its Research and Development Tax Incentive (RDTI) has passed $10 billion in supported business R&D, generating an estimated $6.7 billion…
Connecticut opens its R&D tax credit to pass-through startups, not just C-corps
A budget bill Gov. Lamont signed May 26, 2026 extends Connecticut's R&D tax credit to all entity types—LLCs, S-corps and partnerships—for tax years starting on or after Jan 1, 2026…
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