{"id":2098,"date":"2024-12-18T19:01:01","date_gmt":"2024-12-18T19:01:01","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ca\/post\/sred-changes-what-you-need-to-know-about-the-new-reforms\/"},"modified":"2024-12-18T19:01:01","modified_gmt":"2024-12-18T19:01:01","slug":"sred-changes-what-you-need-to-know-about-the-new-reforms","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/","title":{"rendered":"SR&#038;ED Changes: What You Need to Know About the New Reforms"},"content":{"rendered":"<p>The <strong>Scientific Research and Experimental Development (SR&amp;ED) tax incentive <\/strong>program has long been a cornerstone of Canada\u2019s innovation strategy, supporting over 22,000 businesses annually. Recent reforms announced in the 2024 Fall Economic Statement are set to make this program even more impactful for Canadian businesses.<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>Let\u2019s break down what\u2019s new and how these changes could benefit your business.<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h2 class=\"wp-block-heading\">SR&amp;ED Changes: What is the Current SR&amp;ED Tax Credit Program?<\/h2>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>The <a href=\"https:\/\/leyton.com\/ca\/tax-credits\/sred-scientific-research-experimental-development\/\">SR&amp;ED tax incentive program<\/a> encourages Canadian businesses to invest in research and development (R&amp;D). It provides tax credits for eligible R&amp;D activities, helping businesses offset costs and drive innovation. Here&#8217;s how the program currently works:<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<ul>\n<li><strong>Non-Canadian-Controlled Private Corporations (Non-CCPCs):<\/strong> 15% non-refundable tax credit on qualified SR&amp;ED expenditures.<\/li>\n<li><strong>Canadian-Controlled Private Corporations (CCPCs):<\/strong> 35% fully refundable enhanced tax credit on up to $3 million of qualifying SR&amp;ED expenditures annually. This limit reduces for businesses with taxable capital employed in Canada between $10 million and $50 million. 15% tax credit for qualifying expenditures beyond the $3 million limit. Depending on income levels, these credits may be partially refundable.<\/li>\n<li><strong>Unincorporated Businesses, Individuals, and Certain Trusts: <\/strong>15% partially refundable tax credit on qualified SR&amp;ED expenditures.<\/li>\n<\/ul>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h2 class=\"wp-block-heading\">What are the SR&amp;ED Changes?<\/h2>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>The Canadian government is investing $1.9 billion over the next six years to make the <a href=\"https:\/\/leyton.com\/ca\/tax-credits\/sred-scientific-research-experimental-development\/\">SR&amp;ED program<\/a> more generous and accessible. Here are the key updates:<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<ul>\n<li><strong>Increased Expenditure Limit for CCPCs<\/strong>: The expenditure limit for the enhanced 35% refundable tax credit will rise from $3 million to <strong>$4.5 million<\/strong>. This change allows qualifying CCPCs to <strong>claim up to $1.575 million annually<\/strong> in enhanced tax credits.<\/li>\n<li><strong>Expanded Taxable Capital Phase-Out Thresholds<\/strong>: The taxable capital employed in Canada thresholds will increase from $10 million and $50 million to <strong>$15 million and $75 million<\/strong>. This change allows <strong>more businesses to qualify<\/strong> for the enhanced tax credit.<\/li>\n<li><strong>Eligibility for Public Corporations<\/strong>: Canadian public corporations will now be eligible for the enhanced 35% refundable tax credit on up to <strong>$4.5 million<\/strong> of qualifying expenditures annually.<\/li>\n<li><strong>Reinstated Eligibility for Capital Expenditures<\/strong>: Capital expenditures will once again <strong>qualify for both income deductions and investment tax credits<\/strong>, aligning with the rules that existed before 2014. This applies to property acquired and lease costs incurred on or after the date of the 2024 Fall Economic Statement.<\/li>\n<\/ul>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/leyton.com\/ca\/wp-content\/blogs.dir\/3\/files\/2024\/12\/sred-updates-1-1024x349.jpg\" alt=\"SR&amp;ED Updates\" class=\"wp-image-33316\" \/><\/figure>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h2 class=\"wp-block-heading\">When Do These SR&amp;ED Changes Take Effect?<\/h2>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>The reforms will apply to taxation years beginning on or after <strong>December 16, 2024<\/strong>, unless otherwise specified. More detailed guidelines will be provided in the 2024 Fall Economic Statement.<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h3 class=\"wp-block-heading\">How These Reforms Benefit Your Business<\/h3>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>These updates to the<a href=\"https:\/\/leyton.com\/ca\/tax-credits\/sred-scientific-research-experimental-development\/\"> SR&amp;ED<\/a> tax incentive program aim to:<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<ul>\n<li><strong>Encourage Innovation:<\/strong> Increased support for R&amp;D activities can drive technological advancements.<\/li>\n<li><strong>Boost Accessibility:<\/strong> Higher thresholds mean more businesses can take advantage of the program.<\/li>\n<li><strong>Enhance Cash Flow:<\/strong> Fully refundable credits and restored capital expenditure eligibility provide immediate financial relief for growing businesses.<\/li>\n<\/ul>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h3 class=\"wp-block-heading\">Ready to Take Advantage of the SR&amp;ED Changes?<\/h3>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>Navigating the complexities of<a href=\"https:\/\/leyton.com\/ca\/tax-credits\/sred-scientific-research-experimental-development\/\"> <\/a>the <strong>SR&amp;ED changes<\/strong> can be challenging, but the benefits are well worth it. With these reforms, Canadian businesses have even more incentive to invest in innovation. Whether you\u2019re new to SR&amp;ED or looking to maximize your claims, our team can help.<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p><a href=\"https:\/\/leyton.com\/ca\/en\/contact-us\/\"><strong>Contact us today<\/strong><\/a> to learn how you can leverage the updated SR&amp;ED program to grow your business and stay ahead in an ever-evolving market.<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<div class=\"wp-block-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/leyton.com\/ca\/en\/contact-us\/\">Contact Us<\/a><\/div>\n<\/div>\n<div style=\"height:139px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>Source: <\/p>\n<p>https:\/\/www.canada.ca\/en\/department-finance\/news\/2024\/12\/reforming-and-enhancing-the-scientific-research-and-experimental-development-sred-tax-incentive-program.html <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Scientific Research and Experimental Development (SR&amp;ED) tax incentive program has long been a cornerstone of Canada\u2019s innovation strategy, supporting over 22,000 businesses annually. Recent reforms announced in the 2024 Fall Economic Statement are set to make this program even more impactful for Canadian businesses. Let\u2019s break down what\u2019s new and how these changes could [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2810,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[110],"tags":[115,109,113,528],"expertise":[774],"class_list":["post-2098","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-sred","tag-sred-en","tag-sred-tax-credit","tag-sred-2","tag-tax-credit","expertise-sred-tax-credits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SR&amp;ED Changes: What You Need to Know About the New Reforms - Leyton Canada<\/title>\n<meta name=\"description\" content=\"There have been several SR&amp;ED changes that can impact the way your business utilizes tax credits in the upcoming years.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SR&amp;ED Changes: What You Need to Know About the New Reforms\" \/>\n<meta property=\"og:description\" content=\"There have been several SR&amp;ED changes that can impact the way your business utilizes tax credits in the upcoming years.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/\" \/>\n<meta property=\"og:site_name\" content=\"Leyton Canada\" \/>\n<meta property=\"og:image\" content=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2024\/12\/sred-updates-1-1024x349.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"349\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/\",\"name\":\"SR&ED Changes: What You Need to Know About the New Reforms - Leyton Canada\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/leyton.com\\\/wp-content\\\/blogs.dir\\\/3\\\/files\\\/2024\\\/12\\\/sred-updates-1-1024x349.jpg\",\"datePublished\":\"2024-12-18T19:01:01+00:00\",\"description\":\"There have been several SR&ED changes that can impact the way your business utilizes tax credits in the upcoming years.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/#primaryimage\",\"url\":\"https:\\\/\\\/leyton.com\\\/wp-content\\\/blogs.dir\\\/3\\\/files\\\/2024\\\/12\\\/sred-updates-1-1024x349.jpg\",\"contentUrl\":\"https:\\\/\\\/leyton.com\\\/wp-content\\\/blogs.dir\\\/3\\\/files\\\/2024\\\/12\\\/sred-updates-1-1024x349.jpg\",\"width\":1024,\"height\":349},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/sred-changes-what-you-need-to-know-about-the-new-reforms\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/leyton.com\\\/ca\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SR&#038;ED Changes: What You Need to Know About the New Reforms\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/#website\",\"url\":\"https:\\\/\\\/leyton.com\\\/ca\\\/\",\"name\":\"Leyton\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/leyton.com\\\/ca\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/#organization\",\"name\":\"Leyton\",\"url\":\"https:\\\/\\\/leyton.com\\\/ca\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/wp-content\\\/blogs.dir\\\/3\\\/files\\\/2026\\\/01\\\/logo.svg\",\"contentUrl\":\"https:\\\/\\\/leyton.com\\\/wp-content\\\/blogs.dir\\\/3\\\/files\\\/2026\\\/01\\\/logo.svg\",\"width\":108,\"height\":44,\"caption\":\"Leyton\"},\"image\":{\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"SR&ED Changes: What You Need to Know About the New Reforms - Leyton Canada","description":"There have been several SR&ED changes that can impact the way your business utilizes tax credits in the upcoming years.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/","og_locale":"en_US","og_type":"article","og_title":"SR&ED Changes: What You Need to Know About the New Reforms","og_description":"There have been several SR&ED changes that can impact the way your business utilizes tax credits in the upcoming years.","og_url":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/","og_site_name":"Leyton Canada","og_image":[{"width":1024,"height":349,"url":"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2024\/12\/sred-updates-1-1024x349.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/","url":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/","name":"SR&ED Changes: What You Need to Know About the New Reforms - Leyton Canada","isPartOf":{"@id":"https:\/\/leyton.com\/ca\/#website"},"primaryImageOfPage":{"@id":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/#primaryimage"},"image":{"@id":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/#primaryimage"},"thumbnailUrl":"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2024\/12\/sred-updates-1-1024x349.jpg","datePublished":"2024-12-18T19:01:01+00:00","description":"There have been several SR&ED changes that can impact the way your business utilizes tax credits in the upcoming years.","breadcrumb":{"@id":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/#primaryimage","url":"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2024\/12\/sred-updates-1-1024x349.jpg","contentUrl":"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2024\/12\/sred-updates-1-1024x349.jpg","width":1024,"height":349},{"@type":"BreadcrumbList","@id":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/sred-changes-what-you-need-to-know-about-the-new-reforms\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/leyton.com\/ca\/"},{"@type":"ListItem","position":2,"name":"SR&#038;ED Changes: What You Need to Know About the New Reforms"}]},{"@type":"WebSite","@id":"https:\/\/leyton.com\/ca\/#website","url":"https:\/\/leyton.com\/ca\/","name":"Leyton","description":"","publisher":{"@id":"https:\/\/leyton.com\/ca\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/leyton.com\/ca\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/leyton.com\/ca\/#organization","name":"Leyton","url":"https:\/\/leyton.com\/ca\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/leyton.com\/ca\/#\/schema\/logo\/image\/","url":"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2026\/01\/logo.svg","contentUrl":"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2026\/01\/logo.svg","width":108,"height":44,"caption":"Leyton"},"image":{"@id":"https:\/\/leyton.com\/ca\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/article\/2098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/types\/article"}],"author":[{"embeddable":true,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/comments?post=2098"}],"version-history":[{"count":0,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/article\/2098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/media\/2810"}],"wp:attachment":[{"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/media?parent=2098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/categories?post=2098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/tags?post=2098"},{"taxonomy":"expertise","embeddable":true,"href":"https:\/\/leyton.com\/ca\/wp-json\/wp\/v2\/expertise?post=2098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}