How the 2024 Fall Economic Statement Transforms SR&ED for Canadian Businesses

The 2024 Fall Economic Statement has introduced landmark reforms to the Scientific Research and Experimental Development (SR&ED) program. These changes are poised to revolutionize how Canadian businesses—from startups to multinational corporations—invest in innovation and R&D.

Key Reforms in the 2024 Fall Economic Statement

1. Higher Annual Expenditure Limit
   • The enhanced 35% investment tax credit limit for Canadian-controlled private corporations (CCPCs) will increase from $3 million to $4.5 million.
   • This opens more opportunities for private companies to claim higher R&D credits.
2. Expanded Taxable Capital Phase-out Thresholds
   • The taxable capital thresholds will now range from $15 million to $75 million (up from $10 million and $50 million), allowing more mid-sized companies to qualify for enhanced benefits.
3. Enhanced Refundable Credit for Public Corporations
   • Public companies are now eligible for the enhanced refundable credit, a benefit previously reserved for CCPCs, enabling large-scale innovation projects to thrive.
4. Restored Eligibility for Capital Expenditures (CAPEX)
   • For the first time since 2014, businesses can now include capital expenditures as eligible SR&ED costs. This is a game-changer for sectors like AI, aerospace, and clean tech, which rely heavily on CAPEX for innovation.

These reforms apply to fiscal periods starting after December 16, 2024, which means companies will begin seeing the financial impact in their claims for fiscal 2026.

Why This Matters for Canadian Businesses – 2024 Fall Economic Statement

The updated SR&ED program:

• Provides greater financial support for R&D-heavy industries.
• Encourages investment in new technologies by reducing financial barriers.
• Levels the playing field for public companies, boosting their ability to innovate and scale globally.

For startups and scale-ups, the increased limits and restored CAPEX eligibility translate to unprecedented opportunities to grow. Public companies can now capture benefits previously out of reach, fostering a broader culture of innovation.

Seize This Opportunity

The 2024 Fall Economic Statement positions Canada as a leader in global innovation. Whether you’re in technology, manufacturing, or life sciences, these SR&ED reforms empower businesses to push boundaries and unlock growth.

How Ayming Canada Maximizes SR&ED Opportunities

At Ayming Canada, we specialize in ensuring businesses fully leverage SR&ED to fund innovation and growth. With these new reforms, our expertise is even more critical. We provide:

• Comprehensive reviews to maximize claim value under the updated thresholds.
• Guidance on incorporating CAPEX into SR&ED claims.
• Tailored strategies to help both private and public companies capture every dollar of support.

Ready to maximize your SR&ED claims under the new reforms?
Contact Ayming Canada today to ensure you capture every opportunity in this new era of innovation support.