Part 2 · What's new
2026 SR&ED updates
The federal government made the biggest changes to SR&ED in years. Here is what changed, who it helps, and what it means inside the app.
What changed at a glance
These apply to tax years that start on or after December 16, 2024, so most companies feel them for the first time on claims filed in 2026.
| Rule | Before | Now |
|---|---|---|
| Spending limit for the 35% credit | $6M a year | |
| Taxable capital phase-out | $15M to $75M | |
| Equipment and other capital | Eligible again | |
| Public corporations | Eligible ones can earn 35% |
What this means for you
If you are a CCPC spending up to $6M a year on eligible work, all of it can now earn the refundable 35% credit. Before, only the first $3M could.
Where this shows up in the app
Your SR&ED profile holds the answers these rules depend on.
Settings, SR&ED profile
CCPC status
Decides 35% refundable or 15% credit.
Settings, SR&ED profile
Taxable capital
Your limit shrinks above $15M.
Settings, SR&ED profile
Associated companies
Related companies share one $6M limit.
Assessments
Past work
Claim inside the 18 month filing window.
Check your profile
Takes about a minute. Opens Settings with the tour.
Who it helps most
- Growing startups that were near the old $3M limit: the next $3M now earns 35% instead of 15%.
- CCPCs with $10M to $75M of taxable capital: the limit now starts to shrink at $15M instead of $10M, and only runs out at $75M.
- Teams that buy equipment for experiments, like servers or GPUs used for SR&ED: the cost can count again for property bought on or after December 16, 2024.
- Eligible Canadian public corporations, which used to get only 15%.
CRA process changes
From April 1, 2026 the CRA is changing how claims are handled:
- Optional pre-claim approval. Ask the CRA to approve a project's technical eligibility before you start the work or spend the money.
- Faster reviews. For claims that went through pre-claim approval and need a spending review, the target drops from 180 days to 90.
- Fewer audits of low-risk claims, with more use of AI to decide which claims need a closer look.
- A simpler review, with fewer steps and less paperwork.
The CRA is also consulting on a revised claim form (T661). We will update the app and this page when a new form is released.
Before you file
Check it applies to your year
These measures were announced in the 2024 Fall Economic Statement and confirmed in Budget 2025. Ask your preparer to confirm they are law and apply to the tax year you are claiming.
Sources
This guide helps you prepare. It is not tax advice. Have your SR&ED preparer review your claim before you file.