Introduced in the 1980s, the Scientific Research & Experimental Development (SR&ED) tax credit is a federal tax incentive program administered by the Canada Revenue Agency (CRA). The program encourages businesses of all sizes to conduct research & development to create new or improve existing products, processes, principles, methodologies, or materials.

Here is a basic overview of the program:

• 

  It's a Canadian research and development tax credit
• Commonly pronounced "SHRED"
• ~95% of claims are considered experimental development
• Both SME and large companies can claim SR&ED (there are just different return rates.)
• In 2013, the government provided over $3.4 Billion in assistance to 22,000 claimants
• SR&ED returns are called Investment Tax Credits (or ITCs)

SR&ED can be applied in a number of industries, including:

• Information Communications Technology (ICT)
• Oil & Gas Services and Production
• Clean Tech & Energy
• Manufacturing
• Agriculture
• Bio Technology
• and more!