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Alberta’s innovation economy has been on the move with $13 billion investment by Meta in its AI data centre in Sturgeon County, and consistent investment in automation and cleaner processes within the energy and manufacturing sectors.
There’s another change going on beneath that noise. On March 26, 2026, Bill C-15, the Budget 2025 Implementation Act, No. 1, received Royal Assent. Enclosed is the biggest increase to the Scientific Research and Experimental Development (SR&ED) tax incentive program in over 10 years. If your company is claiming SR&ED, or you thought you couldn’t because of the numbers, it’s worth a few minutes of your time.
What Is Bill C-15?
Bill C-15 is the first budget implementation bill in the 2025 Federal Budget, which Finance Minister François-Philippe Champagne tabled on November 18, 2025. Most budget bills have to convert budget announcements into reality, and their role is just that.
Bill C-15 includes everything from capital cost allowance adjustments to repealing the underused housing tax. The changes to the SR&ED program (Parliament of Canada, 2026) are the ones that are most applicable to Alberta business owners.
Understanding the SR&ED Tax Incentive Program
SR&ED is the one of the federal government’s largest programs of the federal government encouraging business R&D in Canada. It is operated by the CRA and provides a tax deduction, investment tax credit, and, in the case of many smaller businesses, a refundable credit that returns real money to the company.
The majority of companies receive a base 15 percent non-refundable credit on eligible expenditures. Some Canadian-controlled private corporations (CCPCs) with smaller size limits are eligible for a higher refundable credit rate on a portion of their spending each year. Bill C-15 expanded these limits and broadened the group of corporations that can access the enhanced rate.
What Has Changed Under Bill C-15?
Generally, the SR&ED enhancements are available for tax years that begin on or after December 16, 2024. Four changes stand out:
Higher expenditure limit: The spending cap for the boosted 35 percent refundable credit is now doubled, from $3 million to $6 million. The number of refundable credits a qualifying CCPC has been able to receive is increased to a maximum of $2.1 million per year, from about $1.05 million per year.
Wider phase-out thresholds: The capital range for the enhanced rate is being expanded from previous $10 million to $50 million to a new range of $15 million to $75 million, which could include mid-sized companies that had previously stopped being eligible for the enhanced rate.
Access for public corporations: The enhanced 35 percent refundable credit will be available for the first time to eligible Canadian public corporations (ECPCs) under a three-year average gross revenue test.
Capital expenditures restored: Equipment and other capital property purchased after December 15, 2024, are once again eligible for SR&ED deductions and credits.
In addition to these changes, the CRA has announced administrative reforms, such as reducing the typical SR&ED claim processing time by approximately 50%.
Who Benefits Most from the New Rules?
A few types of businesses stand to gain the most.
- Midsize companies that, in the past, have exceeded the old taxable capital limit and had access to a higher rate of credit.
- Those that lost refundable SR&ED support due to going public because of technology or energy.
- Manufacturers, engineering companies, and energy companies that spend money on special equipment for research.
- Any business that had a claim close to the former $3 million limit is now able to claim a bigger refundable credit on the same expenses.
How these Changes Affect Alberta Businesses
Changes were specifically designed to support Alberta’s economy, which is rooted in energy, manufacturing, engineering, and an emerging technology industry. Many oil and gas services firms are investing large sums in technology that uses emissions reduction methods, and the capital expenditure eligibility being restored provides an opportunity to invest in an SR&ED claim.
Alberta has its own province-wide SR&ED tax credit based on the same set of criteria as the federal tax credit, with a provincial twist in the definition of eligible expenditures made within Alberta. It may be a good time to review an SR&ED strategy for businesses that plan carefully and can leverage the added value of the better federal credit with the provincial one.
- Key Planning Considerations Before Your Next SR&ED Claim
- To review an SR&ED claim for a tax year that started after December 16, 2024. You might be able to claim a bigger refundable credit than you did.
- Review capital purchases, such as lab equipment and specialized tools purchased after December 15, 2024, to determine if they qualify for SR&ED.
- If your company is publicly listed, determine if it satisfies the requirements to be an eligible Canadian public corporation.
- If you are a CCPC, model the amount you spend in accordance with the taxable capital method and the new gross revenue election; whichever method yields a higher payout limit will be the method used for the year.
- Keep contemporaneous documentation. It is also important to distinguish between current and capital expenditures, as different rules may apply to each type of expenditure.
- Common Mistakes Businesses Should Avoid
- Assuming that purchases of equipment are still not included. Following the 2014 regulatory change, many companies ceased tracking capital costs for SR&ED and haven't made any changes since.
- The business is disqualified if it takes the step of going public, but ECPCs may now qualify for enhanced credit.
- Not claiming a previous claim that is now eligible for the new limits.
- Using records generated on a posteriori basis instead of documents written during the construction process.
How Faber LLP Can Help
The SR&ED changes in Bill C-15, while providing real planning opportunities, also usher in new decisions which phase-out method to choose, which cap purchases are eligible and whether a previous claim should be re-evaluated.
As part of our tax planning strategy, our team at Faber LLP reviews SR&ED eligibility, organizes supporting documentation, prepares and files claims and responds to queries from the CRA when they are raised, as part of our practice. Before your next SR&ED filing deadline, consult with one of our tax professionals if your business is engaged in research and development or purchases new equipment.