British Columbia SR&ED Tax Credits Up to 45%
Combine the federal SR&ED credit with the BC SR&ED Tax Credit to maximize your R&D tax recovery in British Columbia.
BC SR&ED Tax Credit
British Columbia offers a 10% SR&ED tax credit on eligible expenditures. For qualifying CCPCs, the credit is refundable on expenditures up to the federal expenditure limit. Combined with the federal enhanced rate of 35%, BC-based CCPCs can recover up to 45% of eligible R&D expenditures. BC's thriving tech sector in Vancouver, Victoria, and Kelowna makes it one of the top provinces for SR&ED claimants.
Provincial Credit Rate
10%
Refundable
Yes (for CCPCs, up to federal expenditure limit)
Expenditure Limit
Aligned with federal limit
Combined Max Rate (CCPC)
45%
Combined Max Rate (Non-CCPC)
25%
Carry Forward
10 years
Federal + BC Credit Stacking
Here's how the credits combine for a CCPC with $500,000 in eligible R&D salaries.
Enhanced rate for CCPCs
Refundable
Effective rate: 45%
This example uses salaries only. Including contractor costs (at 80%) and materials would increase the total. Overhead (55% proxy) is added automatically. Use our calculator for a detailed estimate.
British Columbia Eligibility Requirements
- Must have a permanent establishment in British Columbia
- 10% rate applies to qualifying BC SR&ED expenditures
- Refundable for CCPCs on expenditures up to the federal expenditure limit
- For non-CCPCs, the credit is non-refundable but can be carried forward 10 years and back 3 years
- Eligible expenditures must be incurred in BC and align with federal SR&ED definitions
Important: Provincial credits are claimed on your British Columbia corporate tax return, separate from your federal T661 filing with the CRA. Ensure you file both to capture the full combined benefit.
Other British Columbia R&D Incentives
Beyond SR&ED, British Columbia offers additional programs that can be stacked with your tax credits.
Innovate BC
Provides programs and funding to help BC companies commercialize technology, including the Ignite program for startups and the Venture Acceleration Program.
Maximize Your British Columbia SR&ED Credits
Glauq automates your federal and British Columbia provincial SR&ED claims — ensuring you capture every eligible dollar across both programs.
British Columbia SR&ED FAQ
What is the BC SR&ED tax credit rate?
British Columbia offers a 10% tax credit on eligible SR&ED expenditures incurred in the province. The credit is refundable for qualifying CCPCs on expenditures up to the federal expenditure limit.
Is there an expenditure limit for the BC credit?
The refundable portion aligns with the federal expenditure limit. Expenditures above that limit earn a 10% non-refundable credit that can be carried forward 10 years or back 3 years.
How much can a BC software company claim in total?
A CCPC in BC can claim 35% federal + 10% provincial = 45% of eligible expenditures. A company with $500K in R&D salaries could receive up to $225,000 in combined credits.
Can non-CCPCs claim the BC SR&ED credit?
Yes, but the credit is non-refundable for non-CCPCs. It can be used to reduce BC tax payable and carried forward for up to 10 years.