How to Claim SR&ED in 2026: Forms, the Filing Deadline, CRA Reviews and a Step-by-Step Process

Most SR&ED claims are won or lost long before anyone opens Form T661. The work has to be documented as it happens, the projects have to be framed around real technological uncertainty, and the forms have to reach the CRA complete and on time. Miss the reporting deadline and the claim is gone, with no extension available.

This guide walks through how to claim SR&ED in 2026, in the order the work happens: tracking the work, preparing Form T661 and T2 Schedule 31, the Ontario schedules, the claim preparer section, the SR&ED filing deadline, processing times, and what an SR&ED review looks like from the claimant's side of the table.

Bill C-15 received royal assent on March 26, 2026, and the CRA has revised Form T661 to reflect it. If you are new to the program, start with our SR&ED explainer and come back here for the mechanics.

The SR&ED claim process at a glance

Step 1: Track the work during the year

The CRA's "Get ready to claim" page says your documentation must show what work was done, who was involved, when it was done, and how expenditures were calculated. It adds: "Documentation that is dated, signed, and specific to the work performed is best." The CRA's examples include:

• Planning documents, design of experiments and experimentation plans
• Project records, laboratory notebooks and records of trial runs
• Test protocols, data, results, analysis and conclusions
• Design, system architecture and source code (for software development)
• Time sheets, activity records and payroll records
• Invoices and proof of payment; photos, videos, prototypes, samples and scrap records

In practice, the claims that hold up are the ones where the technical story and the time records come from the same source. If the engineering lead's notes show a failed test in March, the March time sheets should show who ran it. Reconstructing that link 14 months later, from memory, is where claims weaken. And as the CRA puts it, "Claimants are responsible for the accuracy of the information in their SR&ED claim", whether or not an advisor prepares it.

Step 2: Confirm which work qualifies

The CRA's guidelines use two requirements. The work must be conducted to advance scientific knowledge or achieve technological advancement (the "Why"), and it must be a systematic investigation or search by means of experiment or analysis (the "How"). Uncertainty exists when it is "unknown (or uncertain) whether a given result or objective can be achieved" with the knowledge available in your business. A workaround using known methods does not qualify, and excluded work such as routine testing, routine data collection and commercial production stays out of the claim.

Our SR&ED eligibility guide covers the test in depth. The CRA's free Self-Assessment and Learning Tool (SALT) can also help check eligibility and identify the records you need.

Step 3: Prepare Form T661

The CRA's Filing Requirements Policy lists ten parts: general information (Part 1), project information for each project (Part 2), expenditure calculations (Parts 3 and 4), the prescribed proxy amount if elected (Part 5), project costs (Part 6), additional information (Part 7), a claim checklist (Part 8), claim preparer information (Part 9) and certification (Part 10).

The 2026 version of Form T661 incorporates the Bill C-15 changes. The CRA's instructions for the updated form add, among other changes, a field of research code at line 207, a pre-claim approval checkbox and case number at lines 212 and 214, lines for capital property and lease costs, and new Part 6 boxes. Use the 2026 form, not an older version.

Part 2: the project descriptions

Part 2 carries the technical case, and it has hard word limits. The CRA's guidance on writing the project description sets these maximums:

• Uncertainties (350 words): the scientific or technological uncertainties you attempted to overcome
• Work performed (700 words): the work you performed in the tax year to overcome them
• Advancements (350 words): the advancements you achieved or attempted to achieve

Part 2 also asks what evidence you have to support the claim, but Guide T4088 says: "Do not submit these documents or items with your claim." Keep them ready.

You may submit Part 2 "for only the 20 largest projects in dollar value, at the time of filing." The CRA can then request it for the remaining projects, and not providing it leads to disallowance. If you use this rule, write the other descriptions anyway and keep them on file. Our technical narrative guide covers how to structure each line.

Step 4: Schedule 31, Schedule 49 and the credit

Form T661 calculates the expenditures; the credit is claimed on T2 Schedule 31 (or Form T2038(IND) for individuals and trusts), with other forms such as T1145, T1146, T1174 and T1263 as needed. Associated corporations file T2 Schedule 49 alongside Schedule 31, because the expenditure limit is shared across the group.

• "The basic ITC rate is 15% on qualified SR&ED expenditures."
• Canadian-controlled private corporations, and now eligible Canadian public corporations, can earn 35% up to the expenditure limit: $6 million for tax years beginning after December 15, 2024. For a CCPC the limit phases out as prior-year taxable capital moves from $15 million to $75 million; for an eligible public corporation it phases out as average revenue over the previous three fiscal years moves through the same range
• "The ITC earned at the 35% enhanced rate on current expenditures is 100% refundable." "The ITC earned on capital expenditures is 40% refundable." Capital expenditures made after December 15, 2024 can be claimed again

Illustration only: a corporation with the full limit could earn up to 35% × $6,000,000 = $2,100,000 a year at the enhanced rate, against 35% × $3,000,000 = $1,050,000 under the old limit. Spending above the limit earns 15%.

Step 5: The Ontario schedules

• Schedule 566, Ontario Innovation Tax Credit (OITC): 8%, refundable, on up to $3 million of eligible expenditures (8% × $3,000,000 = $240,000 maximum). It phases out with prior-year taxable income of $500,000 to $800,000 and prior-year taxable capital of $25 million to $50 million. It requires a permanent establishment in Ontario, SR&ED carried out in Ontario, eligibility for the federal ITC and a filed T661
• Schedule 508, Ontario Research and Development Tax Credit (ORDTC): 3.5%, non-refundable, so it only reduces Ontario corporate income tax payable. Unused amounts carry back 3 years and forward 20. The OITC reduces ORDTC eligible expenditures; the federal ITC does not

Watch the capital mismatch: federal capital expenditures are back, but Ontario's OITC page still excludes capital expenditures made after December 31, 2013. Until Ontario changes its rules, leave capital expenditures made after December 31, 2013 out of the OITC calculation. See our OITC guide for the provincial side.

Step 6: Part 9, claim preparer information

If a paid preparer helped, Part 9 asks for the preparer's name, business number, billing arrangement code, billing rate and total fee. If no paid preparer was involved, Guide T4088 asks you to complete only three lines of Part 9. An employee who prepares the form as part of their job is not a "claim preparer" under the Income Tax Act.

Part 9 is not subject to the reporting deadline, and the claim is not disallowed for Part 9 problems alone. The exposure is the penalty, so get the fee details right.

Step 7: File the claim with your return

Submit the claim "with your original income tax return or with an amended return for the year", electronically through CRA-certified software. Processing starts once the CRA has your completed claim and your return. If you have not heard back 60 days after filing, you can call to check the status.

The SR&ED filing deadline

For corporations: "Your SR&ED reporting deadline is 12 months after your T2 Corporation Income Tax Return is due." The rule is in subsection 37(11) of the Income Tax Act, with a parallel rule in 127(9) for the credit.

If the deadline falls on a weekend or holiday, the next business day counts.

Worked example (illustration)

Illustration, not a CRA figure: a December 31, 2025 year-end gives a T2 filing due date of June 30, 2026 (six months later). Add 12 months and the SR&ED reporting deadline is June 30, 2027, 18 months after year-end.

What is lost if you miss it

• "The CRA does not accept any changes to a claim after the SR&ED reporting deadline has passed." It cannot grant extra time
• Late-filed expenditures are not SR&ED expenditures and earn no ITC
• Forms filed on time but incomplete do not meet the requirements. Estimates, partial claims and "intent to file" letters do not count
• New expenditures are not accepted in an amended T661 filed after the deadline

There is no separate late-filing penalty. The consequence is worse: the claim is lost.

How long the CRA takes: service standards

The CRA's 2026-27 standards: claims are processed "within 60 calendar days from the date we receive a complete claim, if we do not select the claim for a review or an audit." Refundable claims selected for review take up to 180 calendar days. The CRA aims to meet these standards 90% of the time.

Refundable claims under review that include only projects with pre-claim approval take up to 90 days; if any project lacks approval or materially differs from what was approved, it is 180. There are no service standards for non-refundable claims. Our SR&ED pre-claim approval guide explains the process. The 60-day and 180-day clocks run from the date the CRA receives a complete claim.

What happens in an SR&ED review

"The purpose of a review is to determine whether your claim complies with the tax laws." A Research and Technology Advisor (RTA) assesses whether the work is eligible, and a Financial Reviewer (FR) examines the expenditures, using the RTA's report to adjust amounts.

1. A reviewer calls you, then sends a letter with the issues, information requests and an agenda
2. Documents are usually due within about 30 days
3. The review meeting: "The CRA conducts the majority of reviews using digital technologies"; on-site visits are exceptional
4. If adjustments are proposed, a package arrives with an eligibility report, a proposal letter and the financial impact
5. Written representations are generally due within about 30 days
6. A final letter, then a notice of assessment or reassessment

You can be represented, but you remain legally responsible for the claim, and the Taxpayer Bill of Rights (16 rights) applies. Have the people who did or supervised the work available for interviews. If you disagree, go to the RTA or FR, then their managers; a notice of objection is due within 90 days of the notice of assessment or reassessment. Our SR&ED red flags article covers what tends to slow claims down.

First-Time Claimant Advisory Service

If it is your first claim, or you have not claimed in the last 3 years, you may be selected for the First-Time Claimant Advisory Service, "a mandatory virtual service for selected claimants". It happens only after you submit a claim, and "The service is not a review of your claim." The CRA books an online meeting by phone, sends a report with recommendations afterward, and processes any expected refund after the meeting.

A realistic SR&ED timeline

Illustration, using the December 31, 2025 year-end above:

1. 2025: the work happens and is documented as it progresses
2. January to May 2026: projects selected, Part 2 drafted to the word limits, expenditures calculated from year-end financials
3. By June 30, 2026: T2 filed with T661, Schedule 31 (plus Schedule 49 if associated) and the Ontario schedules
4. Then: up to 60 days from a complete claim if not reviewed; up to 180 days for a refundable claim under review (90 if every project had pre-claim approval)
5. June 30, 2027: reporting deadline. An amended claim before this date can still add expenditures; after it, nothing new is accepted

Filing with the original return starts the processing clock sooner. The 12-month window is a safety net, not a plan.

Year-end SR&ED checklist

• List each project with technological uncertainty, with start dates and status
• Confirm time records tie hours to specific projects
• Collect dated test protocols, results and conclusions
• Separate excluded work from the claim
• Flag capital property acquired after December 15, 2024 used for SR&ED
• Confirm association status for the expenditure limit and Schedule 49
• Check prior-year taxable capital against the $15 million to $75 million phase-out
• Put the T2 due date and the reporting deadline in the calendar, and confirm Part 9 fee details if a preparer is involved

Common SR&ED claim mistakes

• Treating the reporting deadline as flexible, or filing an estimate to "hold a place"
• Writing Part 2 as a product description instead of uncertainty, work and advancement
• Using the 20 largest projects rule with nothing written for the rest
• Records that are undated, generic or created after the fact
• Claiming routine testing or data collection done for normal operations
• Forgetting Schedule 49, or assuming capital qualifies for the OITC because it qualifies federally
• Incomplete Part 9 details, which expose claimant and preparer to the $1,000 penalty

Frequently asked questions

How do I claim SR&ED?

Complete Form T661 and claim the credit on T2 Schedule 31 (corporations) or Form T2038(IND) (individuals and trusts), plus any other forms needed. File them with your original income tax return or an amended return for the year, electronically through CRA-certified tax software. Associated corporations also file T2 Schedule 49, and Ontario companies add Schedules 566 and 508 where they apply.

What is the SR&ED filing deadline?

The SR&ED reporting deadline is 12 months after the filing due date of your income tax return. For corporations that is generally 18 months after the tax year-end, for individuals with a business 17 and a half months after the calendar year-end, and for trusts 15 months after the tax year-end. The CRA cannot extend it.

What happens if I miss the SR&ED deadline?

The claim is lost. The CRA does not accept changes after the reporting deadline, late-filed expenditures are not treated as SR&ED expenditures and earn no credit, and new expenditures are not accepted in an amended T661 filed after the deadline.

What are the word limits on Form T661?

The CRA sets word limits for the Part 2 project description: 350 words for the uncertainties, 700 words for the work performed and 350 words for the advancements. You may submit Part 2 for only your 20 largest projects by dollar value, but the CRA can request the rest.

How long does the CRA take to process an SR&ED claim?

The CRA aims to process claims within 60 calendar days of a complete claim if it is not selected for review, and refundable claims selected for review within 180 days. Refundable claims under review that include only projects with pre-claim approval take up to 90 days. The CRA aims to meet the 60-day and 180-day standards 90% of the time, and there are no service standards for non-refundable claims.

What happens in an SR&ED review?

A Research and Technology Advisor assesses whether the work is eligible and a Financial Reviewer examines the expenditures. You are contacted by phone, sent a letter with information requests, and usually given about 30 days to provide documents. Most reviews are done virtually. If adjustments are proposed you get a proposal letter and about 30 days to respond, then a final letter and a notice of assessment or reassessment.

Is there a penalty for the claim preparer section?

Yes. A $1,000 penalty may be assessed for a false statement or omission in the claim preparer information in Part 9 of Form T661, and the preparer is jointly and severally liable with the claimant. A preparer who exercised reasonable care, diligence and skill can rely on a due diligence defence. Part 9 problems alone do not cause the claim to be disallowed.

What records does the CRA expect for SR&ED?

Records that show what work was done, who did it, when, and how expenditures were calculated. The CRA says documentation that is dated, signed and specific to the work performed is best. Examples include experiment plans, lab notebooks, test data and conclusions, source code and architecture, time sheets, payroll records and invoices.

What is the First-Time Claimant Advisory Service?

It is a mandatory virtual service for claimants the CRA selects, which can include first-time claimants and those who have not claimed in the last 3 years. It happens only after you submit a claim, it is not a review of the claim, and you receive a report with recommendations for future claims.