SR&ED for Clean Technology

It can, when the pilot plant is used to resolve technological uncertainties. Since Bill C-15, capital expenditures for eligible property acquired on or after December 16, 2024 can also be claimed.

Yes, but government grants for the same work reduce your SR&ED qualified expenditures, so they must be identified and deducted correctly.

Routine testing and monitoring aren't eligible. Testing that's part of a systematic investigation to resolve a technological uncertainty can be.

Yes, in many cases. Bill C-15 introduced several Clean Economy ITCs — for clean electricity, clean technology manufacturing, and more — alongside the SR&ED enhancements. These can often be claimed together, though they may interact at the expenditure level depending on how costs are allocated. SoftInventors can model both programs together to identify the maximum combined benefit for your situation.

Standard installation of commercially available renewable energy equipment does not qualify for SR&ED — that is routine engineering. What can qualify is the R&D component: novel system design, integration challenges, optimization of performance beyond known benchmarks, or development of new control systems. We identify the qualifying work within a larger project even when most of it is routine installation.

Under Bill C-15, capital equipment acquired after December 15, 2024 and used directly in SR&ED activities is eligible again for the first time since 2014. Testing apparatus, specialized lab equipment, prototype rigs, and other tangible property used in your R&D work can now be included in your claim. This is a significant change for capital-intensive clean tech R&D programs.