The SR&ED claim process, step by step
An SR&ED claim has a predictable shape every year. Knowing the steps — and where the time goes — is half the battle.
Here's the full process, from identifying eligible work to receiving the credit.
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1. Identify eligible work
Review the year's projects against the three criteria and separate the genuinely experimental work from routine development. See the eligibility guide.
2. Gather the evidence
Collect the contemporaneous records that support each project — planning, experiments, results and time. The documentation guide covers what counts.
3. Write the technical narratives
Draft lines 242, 244 and 246 for each project, within the word limits, in specific and cautious language. See the T661 guide.
4. Calculate the expenditures
Total your SR&ED salaries, contractor costs and materials, and choose your overhead method (most use the proxy). These flow into the T661 financial sections.
5. Compute the investment tax credit
The T2 Schedule 31 calculates your federal ITC from the qualified expenditures, and provincial schedules add any provincial credit. SREDlog generates these forms for you.
6. File with your T2 return
File the SR&ED forms with your corporate return by the reporting deadline — generally 18 months after your fiscal year-end. Miss it and the claim is lost. See deadlines.
7. Get paid (and be ready to defend it)
The CRA aims to process complete refundable claims within about 60 days, though a review can extend that. Keep your binder ready in case the claim is selected — see the audit guide.
Frequently asked questions
The CRA's published service standard is roughly 60 days for a complete refundable claim, and longer for non-refundable claims or claims selected for review.
Once your fiscal year ends, for the work done in that year, filed with your T2 by the SR&ED reporting deadline.
Only within the reporting deadline window — generally 18 months after the relevant fiscal year-end. After that, the year is closed for SR&ED.
No. The SR&ED forms (T661, Schedule 31, provincial schedules) are filed together with your T2 corporate return.
Largely, yes — SREDlog supports identification, evidence analysis, narrative drafting, form generation and binder assembly. You review and file.
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This guide is general information, not tax advice — SR&ED rules, rates and limits change, so confirm the current figures with the CRA or your advisor before you file.