Tax Credit

SR&ED Tax Credit

The most valuable tax credit available to Canadian small businesses — and most never claim it.

Maximum benefit

Up to $1,050,000 refundable

The Scientific Research and Experimental Development (SR&ED) program provides a 35% refundable federal tax credit on eligible R&D expenditures for Canadian-Controlled Private Corporations (CCPCs). Quebec businesses receive an additional 30% provincial credit, creating a combined rate of up to 65% on qualifying salaries.

What qualifies: custom software development, product iteration, process improvement experiments, prototype testing — far broader than most business owners assume. If your team is solving a technical problem without a known solution, you likely qualify.

Average recovery: $18,000–$180,000 per year for eligible businesses. The claim covers wages, materials, and contractor costs related to qualifying work.

Most businesses that qualify have never filed. The claim requires a technical narrative and financial documentation — work that Fruxal's recovery team handles on contingency.

Find out if your business qualifies — free scan

Answer 5 questions about your business. See which grants apply and how much you could recover. Takes 3 minutes. Completely free.

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No cost until we recover · We take 12% of what we find