News and Insights

Government of Canada Enacts Bill C-15

April 9, 2026

Government of Canada Enacts Bill C-15: Sweeping Tax and Economic Reforms Now Law

On March 26, 2026, the Government of Canada granted Royal Assent to Bill C-15, officially titled “An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025.” This wide-ranging legislation enacts key measures from the 2025 federal budget and the 2024 Fall Economic Statement, marking one of the most significant tax overhauls in recent years.

Bill C-15 progressed quickly through Parliament: introduced on November 18, 2025, passed third reading on February 26, 2026, and received Senate approval without amendment.

A New Landscape for Business Taxation

Investment Incentives and Capital Cost Recovery

The bill reinstates accelerated Capital Cost Allowance (CCA) for most capital assets acquired after 2024 and available for use before 2030. These incentives will phase out starting in 2030 and end after 2033.

Immediate expensing has been extended to certain asset classes, and a new 10% CCA rate for purpose-built rental housing aims to boost residential development through 2036.

Clean Economy Investment Push

Bill C-15 advances Canada’s clean economy goals with several key measures:

Launch of the Clean Electricity Investment Tax Credit (effective April 2024)
Expanded eligibility for clean technology and manufacturing credits
Extension of full carbon capture (CCUS) tax credit rates through 2035
Broadening of eligible critical minerals

SR&ED: A Major Shift in Innovation Policy

One of the most impactful changes is the overhaul of the Scientific Research and Experimental Development (SR&ED) program:

Refundable expenditure cap increased from $3 million to $6 million
Eligibility expanded beyond traditional Canadian-controlled private corporations (CCPCs)
Capital expenditures and lease costs reintroduced as eligible claims

These updates make SR&ED a powerful tool for scaling and capital-intensive companies. For example, a mid-sized robotics firm can now claim specialized testing equipment while benefiting from the higher refundable cap, improving cash flow for reinvestment.

Note: Larger claims will likely attract increased CRA scrutiny—strong documentation is essential.

Transfer Pricing and International Tax Reform

Canada’s transfer pricing rules have been modernized to better align with OECD standards, including:

A single unified adjustment rule
Enhanced documentation requirements
Stricter penalty frameworks

Changes to Foreign Accrual Property Income (FAPI) rules also eliminate certain tax deferral opportunities for CCPCs earning passive income through foreign affiliates.

Additional Business Measures

Lifetime Capital Gains Exemption (LCGE) increased to $1.25 million
Mineral Exploration Tax Credit extended to 2027
Expanded rollover provisions for qualifying share transfers

Personal Tax Changes: Targeted Relief and Incentives

Key personal tax measures include:

$1.25 million lifetime capital gains exemption for individuals
$10 million exemption for business sales to Employee Ownership Trusts
Temporary top-up tax credit to offset lower marginal rates
New refundable Personal Support Workers Tax Credit (2026–2030)

Updates also cover disability supports, housing accessibility credits, and the tax treatment of the Canada Disability Benefit.

Trusts and Estates: Reporting and Compliance Updates

Bare trust reporting requirements deferred until 2026
Expanded ability for estates to carry back capital losses
Simplified filing for deceased individuals
New exemptions and clarifications for certain trust structures

Indirect Tax Changes: Major Repeals

Several notable taxes have been rolled back:

Digital Services Tax repealed retroactively to June 2024
Underused Housing Tax eliminated for 2025 onward
Luxury tax on aircraft and vessels removed as of November 2025

GST/HST rules have also been refined, including expanded rebates for student housing.

Enhanced Compliance and Administration

Bill C-15 strengthens tax administration through:

Expanded CRA authority for withholding waivers for non-resident service providers
New information-sharing with Employment and Social Development Canada to address worker misclassification

What This Means for Businesses and Individuals

Bill C-15 delivers a balanced mix of investment incentives, innovation support, and stronger compliance. Many measures are retroactive or include transitional rules. Businesses and individuals should review their tax positions promptly to take advantage of new opportunities.

Final Thoughts

From enhanced SR&ED incentives to the repeal of major indirect taxes, Bill C-15 fundamentally reshapes Canada’s tax system. Organizations focused on growth, innovation, or international operations now have substantial new tools — paired with higher expectations for compliance and documentation.

Need help assessing the impact on your business? Contact us today to consult with a qualified tax professional familiar with the latest CRA guidance: www.krestongta.com

Frequently Asked Questions about Bill C-15

When did Bill C-15 receive Royal Assent?

March 26, 2026.

What is the new SR&ED expenditure limit?

The refundable expenditure cap has doubled from $3 million to $6 million.

Has the Lifetime Capital Gains Exemption increased?

Yes — it is now $1.25 million for qualifying dispositions.

Published: April 2026 | Category: Tax News | Tags: Bill C-15, Canada Tax Reforms, SR&ED, CCA

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SR&ED Updates: Bigger Refunds, Broader Eligibility, and New Opportunities for Canadian Businesses

August 27, 2025

SR&ED Tax Credit Updates: Key Changes in the 2024 Fall Economic Statement

The federal government’s 2024 Fall Economic Statement brought important changes to the Scientific Research and Experimental Development (SR&ED) tax incentive program—Canada’s largest source of R&D funding.

For small and medium-sized enterprises (SMEs), these updates mean more access to refundable tax credits, greater flexibility in claiming innovation-related costs, and new opportunities to reinvest in growth. But they also come with new compliance considerations. Here’s what you need to know.

Key Changes at a Glance

The proposed measures significantly expand the scope and generosity of the SR&ED program.

1. Higher Refundable Credit Limits for CCPCs

The enhanced 35% refundable SR&ED credit limit increases from $3 million to $4.5 million in annual eligible expenditures.
This means a qualifying Canadian-controlled private corporation (CCPC) can now claim up to $1.575 million per year in refundable credits (previously capped at $1.05 million).
The phase-out thresholds based on taxable capital also increase, from $10M–$50M to $15M–$75M, allowing more mid-sized companies to remain eligible.

2. Expanded Access for Canadian Public Corporations

For the first time, eligible Canadian public corporations will also qualify for the enhanced 35% refundable credit on up to $4.5 million of expenditures.
Instead of taxable capital, their access will phase out based on gross revenue between $15M and $75M, using consolidated financials for corporate groups.

3. Optional Revenue-Based Test for CCPCs

CCPCs can elect to use the same gross revenue phase-out as public corporations, rather than taxable capital, offering greater flexibility in structuring eligibility.

4. Capital Expenditures Are Back

Capital expenditures (equipment and other depreciable assets) will once again qualify for both deduction against income and the SR&ED tax credit.
This restores a major funding avenue removed in 2013 and is especially valuable for manufacturers, labs, and tech companies investing heavily in new equipment.

Effective date: These changes apply to taxation years beginning on or after the date of the 2024 Fall Economic Statement (November 21, 2024).

Why This Matters for SMEs

For many innovative Canadian businesses, these updates represent a major opportunity:

More refundable cash back. A larger expenditure limit and broader eligibility mean higher refunds that can be reinvested directly into R&D, hiring, and scaling operations.
Support for scale-ups. Companies nearing the old $3M/$10M thresholds can now continue to benefit longer before phasing out.
Recognition of capital investment. Equipment-heavy industries can finally recover part of their investment costs through SR&ED credits again.
Public companies included. This could change the funding landscape for larger Canadian tech and life sciences firms, many of which previously only qualified for the 15% non-refundable credit.

A Practical Example

Consider a Toronto-based advanced manufacturing company with $4M in annual SR&ED-eligible expenditures.

Under the old rules:
- Only the first $3M qualified for the 35% refundable credit = $1.05M back.
- The remaining $1M qualified for a 15% non-refundable credit = $150K, but this could only be used to reduce future taxes payable.
Under the new rules:
- The first $4.5M now qualifies at 35% refundable.
- On $4M of expenditures, the company could receive $1.4M back—a $250K cash-flow improvement compared to the old system.

For a growing SME, that extra quarter-million could mean a new piece of equipment, funding an additional R&D hire, or extending runway in a competitive market.

Risks and Considerations

While these updates are positive, businesses should also be mindful of:

Increased CRA scrutiny. Larger refundable amounts may lead to more frequent and detailed reviews. Proper documentation of SR&ED projects will be essential.
Complex group rules. Public corporations and CCPCs that are part of corporate groups will need to carefully track shared expenditure limits.
Capital asset eligibility rules. Not all equipment purchases will automatically qualify; businesses must meet “all or substantially all” SR&ED use tests or navigate “shared-use” rules.

How Kreston GTA Can Help

The SR&ED program is one of Canada’s most generous incentives, but it’s also one of the most closely audited. With these new rules, the stakes—and opportunities—are higher than ever.

At Kreston GTA LLP, our SR&ED and Incentives team helps businesses:

Maximize refundable credits under the updated rules.
Ensure compliance with CRA requirements and avoid costly disputes.
Identify eligible capital expenditures and structure claims effectively.
Navigate group eligibility and election choices to preserve SR&ED access.

Final Takeaway

The 2024 Fall Economic Statement signals stronger government support for Canadian innovation. With higher refundable limits, the return of capital expenditure eligibility, and broader access for public companies, the SR&ED program is more valuable than it has been in over a decade.

Now is the time for SMEs and scale-ups to revisit their SR&ED strategy.

Contact Kreston GTA LLP’s SR&ED team today to discuss how these changes could impact your next claim and unlock new cash flow opportunities for your business.

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SR&ED and Life Sciences: Maximizing Funding for R&D Support

February 10, 2025

How the SR&ED Tax Credit Program Empowers Life Sciences Innovators in Canada

At Kreston GTA, we are dedicated to advancing the Canadian life sciences sector by guiding innovators from concept to commercialization. Canada’s Scientific Research and Experimental Development (SR&ED) tax credit program stands out as an essential tool. This guide, authored by a Chartered Accountant in Canada, explains how your life sciences company or startup can leverage SR&ED for critical funding, cost mitigation, and sustained innovation—whether you are new to SR&ED or already seeking to maximize your benefits through a holistic approach that includes other government incentives.

What is the SR&ED Program?

The SR&ED program is a federal initiative managed by the Canada Revenue Agency (CRA) to foster research and development (R&D) in Canada. This highly effective program provides cash refunds or tax credits for qualifying R&D activities.

For Canadian-controlled private corporations (CCPCs), SR&ED can refund up to 66% of eligible salary expenses. It also covers eligible materials, salaries, and contractor costs. This is particularly impactful for life sciences innovators, whose work is fundamentally rooted in R&D, enabling the creation of pioneering solutions in healthcare and biotechnology.

For a comprehensive understanding of SR&ED and federal incentives, visit our SR&ED and Government Incentives page.

Why SR&ED Matters for Life Sciences Companies

Offsetting High R&D Costs

The life sciences industry is synonymous with innovation, but this comes at a cost—literally. Expensive raw materials, specialized equipment, and top-tier talent are not optional. The SR&ED program allows eligible expenses for materials, wages, and outsourced testing to be claimed, drastically lowering the financial barrier for impactful research.

Funding Specialized Talent

Attracting and retaining scientists, engineers, and technical experts is vital. SR&ED refunds enable life sciences startups to reinvest in hiring, thereby driving the next wave of healthcare and biotechnology advancements.

Facilitating Collaboration

Collaboration with specialized contractors is commonplace for tasks like preclinical toxicology testing or advanced analytics. SR&ED credits enable companies to recover costs from such collaborations, helping achieve critical R&D milestones without compromising on financial stability.

Supporting Capital Expenditures

Significant proposed changes to the SR&ED program in 2025 may enable the inclusion of capital expenditures (such as lab equipment) as eligible expenses, further amplifying the financial advantage for life sciences ventures.

Pro Tip: Stay informed about regulatory updates on SR&ED—these can have a direct impact on your company’s funding strategy.

Related: Learn how tax services at Kreston GTA complement SR&ED claims for optimal outcomes.

What Expenses Are Eligible Under SR&ED?

For life sciences companies, SR&ED tax credits cover:

Salaries and Wages: Payments to employees directly involved in R&D, including experimental work, clinical trials, prototyping, and testing.
Materials and Consumables: Costs for items like chemicals, reagents, and laboratory kits consumed during research.
Contractor Fees: Payments to third-party contractors for eligible R&D efforts.
Proposed Capital Expenditures (2025): Pending regulatory updates, equipment costs may soon be eligible.

How SR&ED Accelerates Life Sciences Growth

SR&ED can be transformational for companies at every stage:

1. Improved Cash Flow

SR&ED refunds can be reinvested into operations, staff expansion, or new technology, providing flexibility and security.

2. Attracting Investors

Eligibility for SR&ED credits demonstrates robust R&D activity, making your company more attractive to both public and private investors. Many grants and funding programs are easier to access for companies with a proven SR&ED track record.

3. Strategic Growth at Every Stage

Early-Stage Ventures: Startups focused on prototyping, initial testing, or developing proof-of-concept studies should claim SR&ED at the earliest opportunity.
Scaling Ventures: As R&D activities grow, especially during clinical trials or product line expansion, SR&ED claims should be maximized.
Established Enterprises: Even mature companies introducing new products, processes, or conducting optimization projects can benefit from SR&ED.

4. Timely and Strategic Claiming

Align your SR&ED claims with your fiscal year and conduct quarterly reviews to ensure all eligible activities and expenses are captured. Claims must be submitted within 18 months of your fiscal year-end; however, earlier submissions facilitate better cash flow planning.

FAQs About SR&ED for Life Sciences Innovators

1. What is the primary benefit of SR&ED for life sciences startups?
SR&ED offsets substantial R&D costs, allowing startups to reinvest in talent, equipment, and ongoing research, thus accelerating innovation.

2. Which expenses can life sciences companies claim under SR&ED?
Eligible expenses include salaries, materials, contractor fees, and (pending 2025 changes) capital expenditures like lab equipment.

3. When should a life sciences company apply for SR&ED credits?
Claims can be made at any stage—early research, scaling, or mature optimization—as long as eligible R&D activities are documented.

4. Can SR&ED be claimed alongside other tax incentives?
Yes. A comprehensive approach that combines SR&ED with other government incentives maximizes funding and tax optimization.

5. How do I ensure my SR&ED claim is successful?
Maintain meticulous records, conduct regular reviews, and consult with SR&ED experts at Kreston GTA for guidance throughout the process.

For expert guidance or to discuss your eligibility, contact the Kreston GTA team today.

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Significant Changes to the Scientific Research and Experimental Development (SR&ED) Program are Coming!

December 18, 2024

What Canadian Businesses Need to Know

Overview of the 2024 SR&ED Program Updates

On December 13, 2023, the Government of Canada announced significant changes to the Scientific Research and Experimental Development (SR&ED) program, representing a major shift in how Canadian companies can access research and development (R&D) tax incentives. As a Canadian Chartered Accountant, I want to break down these enhancements, which are designed to drive innovation, improve competitiveness, and support economic growth across our nation.

The SR&ED program is a cornerstone for Canadian businesses investing in R&D. It provides tax incentives—including credits and refunds—for eligible expenditures, making innovation more accessible to startups, SMEs, and public corporations alike. The latest reforms aim to streamline application processes, clarify eligibility, and expand the scope of claimable expenses.

Key SR&ED Program Changes for 2024

Increased Expenditure Limits for Enhanced Refunds

The enhanced 35% SR&ED tax credit rate is now applicable to expenditures up to $4.5 million (up from $3 million). This means qualifying Canadian-Controlled Private Corporations (CCPCs) can claim up to $1.575 million per year in fully refundable credits.

Raised Taxable Capital Thresholds

Taxable capital phase-out thresholds are being increased from $10 million and $50 million to $15 million and $75 million, respectively. This widens the eligibility for more mid-sized businesses.

Refundability for Public Companies

The program now extends the enhanced 35% refundable tax credit to eligible Canadian public corporations, on up to $4.5 million of qualifying SR&ED expenditures annually. This is a pivotal advancement, encouraging larger and publicly traded companies to invest further in R&D.

Restoration of Capital Expenditure Eligibility

Capital expenditures are once again eligible for both SR&ED investment tax credits and income deduction. This reinstates the pre-2014 rules, increasing the types of expenses businesses can claim. The new rules apply to property acquired and lease costs payable on or after the 2024 Fall Economic Statement.

For a comprehensive overview of SR&ED eligibility criteria and qualifying expenditures, visit our SR&ED tax incentives overview.

Implementation Timeline

These reforms are projected to take effect for taxation years beginning on or after December 16, 2024, unless otherwise indicated. Further clarifications and technical guidance will be released in the 2024 Fall Economic Statement.

Why These SR&ED Updates Matter for Canadian Companies

The SR&ED program is central to Canada’s innovation strategy, encouraging investment in new technologies, product development, and scientific research. The 2024 changes mean more businesses—from emerging tech startups to public corporations—can benefit from enhanced SR&ED refunds and expanded expense eligibility.

For business owners, CFOs, and R&D managers, understanding these updates is crucial for maximizing your SR&ED tax credits. Strategic planning now can increase your refund potential and positively impact your company’s cash flow and growth trajectory.

Next Steps: How to Prepare for the New SR&ED Rules

Review your organization’s current and planned R&D activities.
Identify capital expenditures that may now be eligible under the expanded rules.
Consult with SR&ED specialists to optimize your claims and ensure compliance with the new criteria.

Curious about other ways to optimize your tax position? Explore our Canadian corporate tax planning services, and read more about government incentives for businesses.

If you have questions about SR&ED eligibility, claim preparation, or the forthcoming regulatory changes, reach out to the expert SR&ED specialists at Kreston GTA for guidance tailored to your business.

Frequently Asked Questions

1. What is the main benefit of the new SR&ED changes for Canadian businesses?
The primary benefit is the increased expenditure limit and expanded eligibility, allowing companies to claim larger, fully refundable tax credits on R&D expenses, including capital expenditures.

2. Do the SR&ED changes affect both private and public companies?
Yes. The 2024 updates extend the enhanced refundable tax credit to eligible Canadian public corporations, in addition to qualifying CCPCs.

3. When do the new SR&ED rules come into effect?
The changes take effect for taxation years beginning on or after December 16, 2024, unless otherwise specified.

4. Are capital expenditures now eligible for SR&ED tax credits?
Yes. Capital expenditures are once again eligible, restoring rules similar to those in place before 2014.

5. Where can I find more information on maximizing my SR&ED claim?
Visit Kreston GTA’s SR&ED Tax Incentives page or contact our team of SR&ED tax specialists for a personalized consultation.

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Contributors:
Spence Walker, Managing Partner
Sarmen Khatcherian, COO, SR&ED and Government Incentives
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Webinar – SR&ED Beyond the Basics

February 29, 2024

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SR&ED: Beyond the Basics | Optimal Claim Structuring, Mitigating Audit Risks and More

February 21, 2024

Unlocking the Full Value of SR&ED Tax Credits: Advanced Strategies for Canadian Businesses

Date & Time: February 28, 2024, 1:30 PM (America/Toronto)

The Scientific Research and Experimental Development (SR&ED) tax credit program remains a cornerstone for Canadian innovation. For organizations ready to move beyond the basics, understanding advanced strategies and expert insights can maximize both eligibility and refund amounts. At Kreston GTA, our team of SR&ED consultants and tax professionals regularly help clients in fields like AI, IT, Semiconductors, and Robotics to extract the most value from their SR&ED claims.

Why Advanced SR&ED Strategies Matter

For many, the initial allure of SR&ED tax credits in Canada is obvious: significant cash refunds or reductions in tax payable. However, too often, businesses leave money on the table due to missed opportunities, structural missteps, or misinterpretations of claimable activities.

Optimal SR&ED Claim Structuring

The structure of your SR&ED claim can dramatically impact the outcome. Key considerations include:

Proper documentation: Keeping precise and contemporaneous records of experimental development activities, eligible expenditures, and technological advancements.
Claiming the right costs: Not all R&D costs are equal. Identifying and categorizing direct SR&ED labour, materials, subcontractor payments, and overhead is crucial.
Company structure: Are you a Canadian-controlled private corporation (CCPC)? Your SR&ED refund rate may be higher, especially if your taxable capital is below certain thresholds.

For a deeper dive into claim structuring, visit our SR&ED tax credits page.

Audit Pitfalls to Avoid

A common challenge is SR&ED audits by the CRA. To reduce risk:

Substantiate every claim: Provide technical narratives that clearly articulate the scientific or technological uncertainty faced.
Be audit-ready: Maintain supporting documentation, including project logs, emails, and test results.
Leverage expert support: Engage with consultants who understand the nuances of CRA expectations.

Leveraging Government Incentives

SR&ED can be combined with other government incentives to further boost your bottom line. For example, programs such as IRAP, provincial R&D credits, and sector-specific grants can often be layered for maximum impact.

Unlocking Immediate Value: Financing Your SR&ED Refund

One advanced strategy is to monetize your SR&ED tax credits before receiving your annual refund. Specialized financial products, such as SR&ED financing or credit facilities, unlock working capital tied up in eligible incentives. This enables businesses to reinvest in innovation, talent, or infrastructure without delaying for the CRA’s processing timeline.

About the Workshop: Expert Insights from Kreston GTA and Easly

Hosted by top industry leaders:

Spence Walker, CPA, CA – Managing Partner, Kreston GTA
Sarmen Khatcherian, C.E.T. – COO, SR&ED and Government Incentives, Kreston GTA
Nikhil Rodye, MBC, CPA, CMA – Director, Channel Accounts, Easly

Join this exclusive 30-minute online workshop to advance your mastery of the SR&ED program. Learn actionable tips on optimizing your claim structure, avoiding common audit risks, and making the most of your eligible expenditures.

There will be a live Q&A session—bring your toughest questions for detailed, expert answers.

Register for the Webinar Here

To further enhance your understanding, explore our other in-depth resources:

With decades of experience, our chartered accountants and SR&ED consultants have guided hundreds of Canadian companies through complex claims, maximizing refunds and reducing audit risks.

Frequently Asked Questions

1. What industries can benefit most from SR&ED tax credits?
Industries such as Artificial Intelligence, Information Technology, Semiconductors, and Robotics routinely benefit, but any sector undertaking technological advancement or resolving scientific uncertainties is eligible.

2. How do I know if my expenditures are eligible for SR&ED credits?
Eligible expenditures include wages, materials, contract costs, and a portion of overhead, provided they directly support qualifying R&D activities.

3. What are the most common SR&ED audit triggers?
Poor documentation, unclear technical narratives, and claiming ineligible costs can all increase your risk of a CRA audit.

4. Can I access my SR&ED refund before the CRA processes my claim?
Yes, through SR&ED financing solutions, you can monetize your anticipated refund and immediately boost your working capital.

5. Where can I get expert help with my SR&ED claim?
Kreston GTA offers comprehensive SR&ED and government incentive consulting; see our SR&ED tax credits service page for more details.

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Government launches consultations to increase Canadian research and development and intellectual property retention

February 1, 2024

Federal SR&ED Tax Incentive Program Consultations: Modernizing R&D and IP Support in Canada

Today, the Canadian federal government has launched consultations on its Scientific Research and Experimental Development (SR&ED) tax incentive program, aiming to ensure the program continues to drive innovation and strengthens Canada’s position as a global research and development (R&D) leader. This initiative is crucial for supporting Canadian businesses and fostering the retention of intellectual property (IP) within Canada.

What Is the SR&ED Tax Incentive Program?

The SR&ED program is Canada’s largest federal initiative for business-related R&D and has been a cornerstone of Canadian innovation policy since its inception in 1948. Each year, the program provides over $3.9 billion (2021) in tax incentives to more than 22,000 businesses, encouraging both Canadian technology companies and foreign-owned firms to invest in R&D activities within the country.

SR&ED tax credits offer significant financial incentives to Canadian businesses, enabling them to reduce their tax liabilities and reinvest in developing cutting-edge technologies. If you are considering applying for SR&ED or want to maximize your claim, learn more about our SR&ED and Incentives services at Kreston GTA.

Why Are Consultations Happening Now?

The Department of Finance is now seeking feedback from Canadians and stakeholders on how to modernize and improve the SR&ED program, including the possibility of introducing a patent box regime. Patent boxes are tax regimes that allow corporate profits derived from domestic IP commercialization to be taxed at a lower rate, incentivizing companies to both develop and retain IP within Canada.

The government is exploring whether further incentives—such as reduced corporate tax rates on global income derived from Canadian-generated IP—could enhance the program’s effectiveness. These changes aim to make Canada more competitive in retaining valuable intangible assets and in supporting R&D-intensive businesses.

Key Objectives of the Consultation

The federal government’s consultation is focused on:

Enhancing support for R&D-focused Canadian firms
Improving SR&ED eligibility criteria and program structure
Aligning the SR&ED program with other R&D support initiatives
Exploring more effective methods for delivering assistance via SR&ED

The consultation also considers how the SR&ED program can better complement direct funding programs and other innovation incentives.

The Importance of Evolving SR&ED Support

As a Chartered Accountant with a robust background in finance and technology consulting, I strongly applaud this consultative effort by the Canadian government. Evolving from a rigid, rules-based framework to a more targeted, outcome-driven approach is essential for fostering world-class IP development and protection in Canada. This evolution will help Canadian businesses remain globally competitive and ensure the economic benefits of innovation are realized domestically.

Why Does Intellectual Property Retention Matter?

Retaining intellectual property in Canada ensures that the economic and social benefits of innovation—including job creation, economic growth, and technological advancement—stay within our borders. A modernized SR&ED program, complemented by a competitive patent box regime, will make Canada a more attractive destination for innovators and entrepreneurs worldwide.

How Kreston GTA Can Help

At Kreston GTA LLP, we offer market-leading technical and financial expertise through our integrated team of senior industrial engineering specialists and specialized tax accountants. Our SR&ED and incentives team provides a holistic approach to maximizing investment tax credits and identifying all available funding opportunities for your business.

Whether your organization operates in IT, artificial intelligence, life sciences, robotics, or manufacturing, Kreston GTA delivers tailored support to help you thrive in the fast-evolving Canadian innovation landscape. Through our international network, Kreston Global, we empower clients to succeed wherever they operate.

For comprehensive guidance on maximizing your SR&ED tax credits and integrating them with other government incentive programs, consult our SR&ED and Incentives practice.

About the Author

Dale is a Partner in the SR&ED and Government Incentives practice at Kreston GTA LLP. With an MBA and over 15 years of engineering technology leadership experience in IT, telecom, space, and manufacturing—followed by senior roles at EY, Deloitte, Grant Thornton LLP, Baker Tilly Canada, and RSM Canada LLP—Dale specializes in optimizing government incentives across Canada’s major markets. He now leads practice growth in strategic sectors including AI, life sciences, financial services, robotics, and semiconductors.

Frequently Asked Questions

1. What is the SR&ED tax incentive program?
The SR&ED program is a federal tax incentive initiative that supports Canadian businesses investing in research and development, offering significant tax credits to offset R&D costs.

2. Who can benefit from SR&ED tax credits?
Any Canadian business, including foreign-owned firms conducting eligible R&D activities in Canada, can benefit from SR&ED tax credits.

3. What changes are being considered in the current consultation?
The government is considering modernizing the SR&ED program, possibly introducing a patent box regime to provide further tax incentives for retaining IP in Canada.

4. Why is intellectual property retention important for Canadian R&D?
Retaining IP ensures economic benefits, such as job creation and innovation, remain within Canada, strengthening our global competitiveness.

5. How can Kreston GTA help with SR&ED and other Canadian innovation incentives?
Kreston GTA offers expert guidance on maximizing SR&ED tax credits and leveraging all available government incentives to support innovation and business growth.

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This week, I sat down with Bal Katlai (Partner, Tax) to discuss a Tax Court of Canada (TCC) decision that […]

De Facto Control and Enhanced SR&ED Tax Credits in Quebec

Markham, Canada, February 24, 2026 This week, I sat down with our very own Bal Katlai (Partner, Tax) to discuss […]

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Government of Canada Enacts Bill C-15