SR&ED for Software Development: What Actually Qualifies
Software development work can qualify for SR&ED when it involves systematic investigation. Learn the specific criteria that make code eligible and how to document it.
Turn this into a claim-ready next step. Check eligibility, estimate the possible credit, or preview what your CPA would review.
When code qualifies for SR&ED
Software development qualifies for SR&ED when it involves systematic investigation of technological uncertainty. The key is the investigation, not the result. Code that was built through experimentation, failed approaches, and iterative refinement is eligible.
- Investigating a performance problem that required understanding runtime behavior beyond documentation
- Developing a novel algorithm because existing approaches couldn't meet your specific requirements
- Resolving a fundamental conflict between technical requirements where no standard solution existed
- Building a platform that required solving interoperability problems that standard tools couldn't address
- Systematic investigation of ML model behavior for a domain without established benchmarks
When code doesn't qualify
Routine software development does not qualify for SR&ED. The distinction between investigation and implementation is the key eligibility criterion.
- CRUD applications using documented frameworks and APIs
- Standard integrations where the third party provides documentation and SDKs
- UI/UX work without underlying technical uncertainty
- Applying a well-documented technique your team simply hadn't used before
- Configuration tuning within documented parameter ranges
Novel-to-your-team is not the standard. If the approach was documented in a paper, available in a maintained library, or covered by vendor support, it doesn't matter that your team hadn't done it before.
Ready to turn this into a claim?
Check whether your work qualifies, estimate the possible credit, or preview the package your CPA would review.
More guides
SR&ED Software Companies: What Canadian Founders Should Know
Canadian software companies can claim SR&ED for eligible R&D work. Learn what qualifies, how to document it, and how software claim preparation differs from consultant-led filing.
DocumentationBest SR&ED Software for Canadian Companies in 2026
Compare the best SR&ED software for Canadian businesses. What to look for in claim preparation software, how it differs from consultants, and why fixed-fee beats percentage-of-refund.
DocumentationSR&ED Documentation Software for Canadian Tech Companies
SR&ED documentation software helps Canadian tech companies build contemporaneous evidence records from GitHub, Jira, Linear, Slack, and design docs. Audit-ready, CRA-defensible.
Ready to check if your work qualifies? Take the free eligibility assessment.
Check eligibility — free →