SR&ED claim process
Follow a SR&ED claim from eligibility and evidence through forms, review and filing.
A well-supported claim is assembled over time, not rescued by a writing sprint at the reporting deadline. The sequence is straightforward: identify work for review, connect its records, calculate the amounts and approve the filing package.
The judgment inside each step still belongs to the preparer. This is the working order from project review through record retention.
1. Mark work for eligibility review
Review the year's projects against the CRA's advancement and systematic-investigation requirements. Separate the particular investigation from routine activity around it. See the eligibility guide.
2. Connect the source record
Collect the records that show the plan, experiments or analysis, results, people and time. Keep them with the project they support. The documentation guide covers useful evidence.
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
Identify the allowable expenditures and choose the traditional or proxy method. The calculation can include more than salaries, contracts and materials, and the rules vary by category. These amounts flow into Form T661.
5. Calculate the investment tax credit
Corporations use T2 Schedule 31 to calculate the federal ITC from qualified expenditures, with applicable provincial or territorial schedules handled separately. SREDlog prepares supported form drafts for review.
6. File with your T2 return
File the prescribed SR&ED forms with your corporate return by the reporting deadline, generally 18 months after a corporation's fiscal year-end. Information filed after the deadline may not be accepted. See deadlines.
7. Track processing and retain the record
The CRA service standard is 60 calendar days for a complete claim accepted as filed and 180 calendar days for a complete refundable claim selected for review. The CRA commits to meeting these standards 90% of the time. Retain the final forms and source records in case the claim is reviewed later; see the review guide.
Frequently asked questions
The CRA service standard is 60 calendar days for a complete claim accepted as filed and 180 calendar days for a complete refundable claim selected for review. The CRA commits to meeting these standards 90% of the time.
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.
SREDlog can organize evidence, prepare assessments and narrative drafts, generate forms and assemble a review package. Your team reviews the work, makes the eligibility decision and files the return.
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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.