Bill C-15: What Changed for SR&ED
The March 2026 federal budget introduced the most significant SR&ED reforms in over a decade. Here's what Canadian businesses need to know.
Enhanced Limit Doubled to $6M
Bill C-15 doubles the enhanced SR&ED expenditure limit for Canadian-controlled private corporations from $3M to $6M. The 35% refundable ITC rate — the highest tier — now applies to up to $6M of qualifying expenditures, effectively doubling the maximum refundable credit from roughly $1.05M to $2.1M.
Capital Expenditure Eligibility Restored
Capital expenditures — including equipment, machinery, and other tangible property used directly in SR&ED activities — are once again eligible under the program. This reverses their removal in 2014 and opens up significant new claim potential for companies with capital-intensive R&D.
New Pre-Claim Approval Process
A new CRA Pre-Claim Approval Process allows businesses to seek advance confirmation that a project qualifies for SR&ED before work begins or before filing. This substantially reduces audit risk and gives companies the confidence to invest in R&D with a clear picture of their expected tax credit.
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