Scientific research and experimental development tax credit

The B.C. scientific research and experimental development (SR&ED) tax credit is for qualifying corporations that incur BC qualified expenditures.

Budget 2026 made the scientific research and experimental development (SR&ED) tax credit permanent.

Qualifying corporations that are Canadian-controlled private corporations (CCPCs) may claim a refundable tax credit. Budget 2026 expanded eligibility for the refundable credit to eligible Canadian public corporations (ECPCs) effective for the tax years that begin on or after December 16, 2024. Qualifying corporations that are CCPCs or ECPCs may claim a refundable tax credit of 10% of the lesser of:

• The corporation's SR&ED qualified BC expenditure for the tax year, or
• The expenditure limit, as defined in the federal Income Tax Act. Effective for tax years that begin on or after December 16, 2024, the expenditure limit is increased to $6 million

A non-refundable tax credit may be claimed for expenditures in excess of what has been claimed for the refundable tax credit. The non-refundable credit may be claimed by all qualifying corporations. The non-refundable credit for a tax year is 10% of the corporation's SR&ED qualified BC expenditure for the year less:

• The amount of its refundable credit for that year, and
• Any amount renounced for that year 

The non-refundable credit can be carried forward 10 years or back three years.

Budget 2026 also clarified that B.C. accepts other federal changes to the SR&ED program for tax years that begin on or after December 16, 2024, including:

• Restoring eligibility of capital expenditures as BC qualified expenditures
• Increasing the phase-out threshold for the prior-year taxable capital for determining a CCPC's expenditure limit to $15 million. The expenditure limit phases out completely once the prior-year taxable capital reaches $75 million

For full details about the SR&ED tax credit, including eligibility requirements, and how and when to claim the credit, see the bulletin British Columbia Scientific Research and Experimental Development Tax Credit (CIT 007) (PDF, 190KB).

Claiming the credit

You can claim the credit by completing the British Columbia Scientific Research and Experimental Development Tax Credit (T666) form and submitting it with your T2 Corporation Income Tax Return. Enter the amount of the non-refundable credit on line 659 and the refundable credit you are claiming on line 674 of Schedule 5, Tax Calculation Supplementary – Corporations.

You must claim the credit no later than 18 months after the end of the tax year in which the qualified expenditures are incurred.

Legislation

The following legislation applies to the B.C. SR&ED tax credit:

• Income Tax Act (B.C.) Part 6
• Bill 2, Budget Measures Implementation Act, 2026