SR&ED Tax Credit Software — How It Works for Canadian Businesses

Canada’s SR&ED program is the country’s largest R&D tax incentive — a refundable Investment Tax Credit that puts real cash back in your company. SR&ED tax credit software makes the claim preparation process structured and manageable, without paying a consultant a percentage of your refund.

What the SR&ED tax credit is worth

For Canadian-controlled private corporations (CCPCs), the federal SR&ED Investment Tax Credit is 35% on the first $3 million of eligible expenditures (fully refundable) and 15% above that threshold. Most growth-stage Canadian companies have eligible expenditures well within the $3M threshold — meaning the entire credit is received as a cash refund, even with no tax owing. See the SR&ED tax credit Canada federal program guide for the complete rate breakdown.

What SR&ED tax credit software does

SR&ED software guides you through the claim preparation process a traditional consultant would otherwise handle:

• Step 1 — Eligibility check: confirm which projects involved genuine technological uncertainty before investing time in the full claim interview
• Step 2 — Guided project interview: describe each eligible project in response to structured questions modelled on CRA’s T661 requirements
• Step 3 — Financial schedule: enter eligible wages, contractor fees (capped at 80%), materials consumed, and overhead via the proxy method
• Step 4 — Evidence documentation: record supporting evidence for each project; the platform generates an evidence index linking records to claim elements
• Step 5 — Package export: generate the complete claim package formatted for your accountant to review and file

What expenses the SR&ED tax credit covers

• Employee wages — salary and benefits for employees directly engaged in SR&ED work, allocated by percentage of time on eligible projects
• Contractor fees — up to 80% of fees paid to arm’s-length subcontractors performing SR&ED work on your behalf
• Materials consumed — raw materials and supplies that were consumed or transformed in the course of SR&ED work
• Overhead — calculated using the proxy method (55% of eligible wages), replacing the need to itemize indirect costs

How software pricing compares to consultant fees

For a full breakdown, see SR&ED software vs. consultant or how SR&ED consultant fees work.

What SREDY.IO generates

• T661-aligned project narratives addressing technological uncertainty, systematic investigation, and advancement for each eligible project
• Financial schedules for wages, contractors, materials, and overhead — structured for Schedule 31 review
• An evidence index mapping your documentation to each claim element
• A CRA readiness assessment surfacing any gaps before your accountant files
• An accountant-ready export package

View a complete sample output to see exactly what your accountant receives.