Glauq Blog
Practical guides for Canadian software companies claiming SR&ED: eligibility, the T661, CRA reviews, provincial rates, and where the line falls for engineering work.
SR&ED production runs: how to claim a trial on your live line
SR&ED production runs: when a trial on your live line counts, why the CRA allows only the extra cost on a commercial run, and a worked example with numbers.
SR&ED credit carryforward: what happens to unused ITCs (and when recapture takes them back)
Unused SR&ED credits carry forward 20 years or back 3. But sell equipment or a prototype you claimed and recapture can add part of that credit back to your tax bill.
SR&ED for Canadian subsidiaries: how foreign ownership cuts your rate
SR&ED for Canadian subsidiaries of foreign parents often means the 15% non-refundable rate, not the 35% refundable one. Here's why control status decides it.
SR&ED materials: what manufacturers can claim for prototypes, test parts and scrap
SR&ED materials rules for manufacturers: when prototype parts, test blanks and scrapped builds count, the 10% scrap rule, and when the CRA takes the credit back.
SR&ED for dev shops: why the work you bill for might not be the R&D you get to claim
SR&ED for dev shops isn't automatic on contract work: payments you receive reduce your own claim pool. Here's how the CRA's contract rule actually works.
SR&ED for adtech startups: where the CRA draws the line on market research
SR&ED for adtech startups hits a trap most software verticals don't: the CRA excludes market research and sales promotion by name. Here's the real line.
SR&ED for edtech startups: where the CRA draws the line on learning research
SR&ED for edtech startups turns on one exclusion most software claims never face: social science research. Here's what actually qualifies, and what doesn't.
SR&ED for agtech startups: where the field trial ends and the R&D begins
SR&ED for agtech startups hinges on one line: novel sensing, robotics, and control-system engineering can qualify, while routine field trials rarely do.
SR&ED for gaming startups: where the engineering ends and the art begins
SR&ED for gaming startups hinges on one line: engine and tools work can qualify, but content and style choices are excluded. Here is where the CRA draws it.
SR&ED for biotech startups: where bench science actually qualifies
SR&ED for biotech startups hinges on one line: where uncertainty ends and manufacturing begins. Here's the CRA test applied to wet-lab and process work.
SR&ED for cleantech startups: what actually qualifies, and what doesn't
SR&ED for cleantech startups isn't automatic just because it reduces emissions. Here's the CRA's real eligibility test applied to clean energy engineering.
SR&ED for healthtech startups: what actually qualifies, and what doesn't
SR&ED for healthtech startups isn't automatic just because the product touches patients. Here's the CRA's real eligibility test applied to health engineering.
SR&ED for hardware startups: what actually qualifies, and what doesn't
SR&ED for hardware startups isn't automatic just because you build a physical product. Here's the CRA's real eligibility test applied to hardware engineering.
SR&ED for fintech startups: what actually qualifies, and what doesn't
SR&ED for fintech startups isn't automatic just because you touch payments or risk. Here's the CRA's real eligibility test applied to fintech engineering.
SR&ED for AI startups: what actually qualifies, and what doesn't
SR&ED for AI startups isn't automatic just because you use machine learning. Here's the CRA's real eligibility test applied to ML work, and where it stops.
SR&ED open source eligibility: does building on or contributing to open-source code qualify?
SR&ED open source eligibility isn't about licensing. Here's how the CRA's two-part test applies when your R&D forks, extends, or builds on open-source code.
SR&ED expenditure limit: how the $6M cap phases out as your company grows
The 35% SR&ED rate covers the first $6M of spending, up to $2.1M of credit a year. It shrinks once taxable capital passes $15M and hits zero at $75M.
SR&ED contract expenditures: why only 80% of what you pay a contractor counts
SR&ED contract expenditures are only 80% eligible for the tax credit when you pay an arm's-length contractor. Here's how the CRA's rule actually works, sourced.
The SR&ED proxy method: how the 55% overhead rate actually works
The proxy method replaces itemized overhead with 55% of your salary base: $500K of salaries adds $275K of claimable spend. When it beats itemizing.
SR&ED for CTOs: the operational guide to claiming R&D credits without slowing your team down
SR&ED for CTOs means owning eligibility calls and documentation timing finance can't make alone. Here's the operational playbook, sourced to the CRA.
SR&ED provincial tax credits: the real combined rate in every province (2026)
Provincial SR&ED credits reduce the federal base, so they don't simply add to 35%. The real combined rate in every province, sourced to the CRA.
SR&ED Alberta tax credit: how the Innovation Employment Grant stacks with the federal $6M limit
The SR&ED Alberta tax credit runs through the Innovation Employment Grant, not a tax credit — 8% to 20% refundable, stacked with the federal SR&ED rate.
SR&ED changes 2026: what Bill C-15 actually rewrote
Bill C-15 became law on March 26, 2026: the SR&ED limit doubled to $6M, the phase-out moved to $15M–$75M and capital spending qualifies again.
T661 form example: how a software company writes lines 242, 244, and 246
A T661 form example for 2026: how a software company answers lines 242, 244, and 246, and what separates a narrative that survives review from one that doesn't.
AI SR&ED claims: what the CRA actually cares about
AI SR&ED claims aren't risky because a tool wrote them. They're risky without a named expert behind them. What actually decides if one survives review.
The SR&ED grind rule: why your provincial credit shrinks your federal claim
The SR&ED grind rule cuts your federal credit every time you claim a provincial one. How the math actually works, province by province, with CRA sources.
The T661 form: what every part of your SR&ED claim actually asks for
The T661 form is where your SR&ED claim lives or dies. All 10 parts explained for 2026, the real 350/700/350 word limits, deadlines, and what gets denied.
SR&ED Quebec tax credit: the CRIC's 30%/20% tiers and the real combined rate
Quebec's CRIC pays 30% on the first $1M above the threshold, then 20%. With the federal credit that's about 54.5%, not 65%. Worked example inside.
SR&ED BC tax credit: how the 10% provincial rate stacks with the federal $6M limit
BC adds a 10% refundable SR&ED credit up to the $6M federal limit, filed on Form T666. With the federal credit it's about 41.5%, not 45%. Here's the math.
SR&ED Ontario: how the OITC really stacks with your federal credit
Ontario's SR&ED credits: the 8% refundable OITC and 3.5% non-refundable ORDTC. With the federal credit the OITC nets about 40.2%, not 43%. The math.
SR&ED financing: how to bridge the cash gap before your refund lands
SR&ED financing bridges the gap between R&D spend and refund. Here's the real timeline, what financing actually does, and when filing early beats it.
SR&ED consultant fees scale with your claim, not your effort. Here's the math
SR&ED consultant fees are usually a cut of your refund, not a price for the work. Here's how flat-fee and contingency pricing actually compare as claims grow.
SR&ED for startups: how to file your first claim without wasting a year
SR&ED for startups doesn't require profitability. Here's how a first-time claim works: eligibility, deadlines, forms, and what to expect from the CRA.
SR&ED eligible activities: the CRA's actual test, not the myths
SR&ED eligible activities are defined by a two-part CRA test, not by industry or lab coats. Here's the test, the 8 support-work categories, and what's excluded.
The SR&ED approval rate is 90%. Here's the CRA's own data
CRA's 2025–26 data: 90% of SR&ED claims accepted as filed, 6% after changes, 4% denied. What the denied claims have in common, and the review timelines.
The SR&ED filing deadline is absolute. Here's how the 18-month rule works
Your SR&ED filing deadline is 18 months after your fiscal year end. Miss it and the credits are gone for good. Key dates, the T661, and how to stay ahead.
SR&ED pre-claim approval: the CRA will now tell you 'yes' before you file
The CRA's SR&ED pre-claim approval process, live since April 2026, rules on your project's eligibility before you file. Who qualifies and how to apply.
Scared of a SR&ED audit? Here's what actually happens — and why it shouldn't stop you claiming
Worried a SRED audit will bite you? Here's what a SR&ED audit actually involves, what triggers one, and how to claim so a CRA review is a non-event.
SR&ED automation software: what AI actually changes about your claim
SR&ED automation software doesn't file your claim or decide eligibility. Here's what it actually automates, what still needs a human, and what to check.
Maximize your SR&ED claim: what actually moves the number
Maximize your SR&ED claim by fixing the five places companies leave money on the table: tracking, eligibility awareness, documentation, time, and expenditures.