If your company is investing in R&D, the 2025 Federal Budget brings some of the biggest SR&ED updates in over a decade. This means significantly more cash back in your pocket.
SR&ED updates: Get bigger refunds for your R&D projects
For Canadian-controlled private corporations (CCPCs), the enhanced 35% refundable SR&ED credit just got a huge boost. The annual expenditure limit is now $6 million, double what it was before. That means your business could get up to $2.1 million cash back each year on qualifying R&D expenses.
If you are a mid-sized company, you can now take full advantage of this refundable 35% credit. The phase-out thresholds based on prior year taxable capital have increased from $10M – $50M to $15M- $75M Simply put, if you’re investing heavily in innovation, there’s a real opportunity to maximize your cash refund.
Public companies can now access the enhanced rate
For the first time, eligible Canadian public corporations (ECPCs)can qualify for the 35% refundable rate. This opens the door for publicly traded companies to significantly reduce R&D costs and keep more cash available to reinvest in growth. Ayming can guide you through the calculation method to maximize your refund.
Claim SR&ED on capital expenditures again
If your projects require equipment, prototypes, or other big-ticket R&D assets, here’s good news: the Budget restores eligibility for capital expenditures. This change, effective for taxation years that begin on or after December 16, 2024. , means you can now claim credits on equipment and other R&D benefits that were previously limited to operating expenses. Ayming’s experts can help you structure these claims to make the most of this opportunity.
Faster, smarter, less burdensome claims
Budget 2025 also makes claiming SR&ED simpler and faster:
- Pre-claim approvals for technical eligibility, cutting review times from 180 to 90 days.
- AI-assisted processing for low-risk claims, reducing unnecessary audits.
- Streamlined reviews to speed up determinations and reduce administrative headaches.
These improvements give your business greater confidence to invest in R&D and grow innovation without worrying about long delays or uncertainty.
Ayming Expert,
Elisa Di Paolo
Why partner with Ayming
With these changes, your R&D strategy needs a fresh look. At Ayming, we help businesses like yours maximize SR&ED funding, reduce risk, and accelerate growth.
Don’t leave money on the table, let’s explore how these new rules can work for your company and turn your R&D investments into cash that drives your business forward.
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