Think You Don’t Qualify for SR&ED? A Consultant Explains Why You Might
Will Zittlau’s main mission is to help people. When he’s not training people in avalanche safety, he dedicates his time to helping businesses access non-dilutive funding.
As a SR&ED consultant, his background is eclectic. With a bachelor’s degree in mechanical engineering and a self-taught software developer, Zittlau found himself working at startups before joining Boast, one of Canada’s largest SR&ED-focused consulting firms.
During his time there, he helped secure over $6.5 million in tax credits. Drawing on this experience, he launched Summit R&D in Spring 2025, becoming the first dedicated SR&ED consultant in the Sea-to-Sky region.
We sat down with Zittlau to break down SR&ED; what the program is, recent changes, common misconceptions, and why hiring a consultant might be worth it.
What is SR&ED?
The Scientific Research and Experimental Development (SR&ED) program is Canada’s largest tax incentive for research and development. It’s designed to support companies that involve:
- Developing new products, processes, materials, or technologies, OR
- Improving existing ones through experimentation, problem-solving, or advancing scientific and technological understanding.
Depending on your company’s size and structure, SR&ED offers:
- Refundable tax credits (direct cash back)
- Non-refundable tax credits (used to reduce taxes owing)
And this credit applies to virtually any industry.
“As long as the work is technical in nature, and addresses an unknown, any company building a new product or process can likely qualify,” Zittlau explained.
What Goes Into an SR&ED Claim?
For a SR&ED claim, your project must be working to resolve a technological problem or uncertainty. You file the claim when submitting your corporate tax return, which includes both the financial costs of your R&D projects and technical report(s) outlining your eligibility.
Companies can file up to 20 projects, each requiring its own report.
A technical report covers three key points:
- The technological uncertainty – Showing that a solution to your challenge wasn’t readily available or obvious.
- Systematic investigation – Demonstrating that the project followed a structured process (e.g., hypothesis, testing, iteration).
- Advancement of knowledge – Showing how the project expanded the company’s understanding, even if the outcome failed.
Common SR&ED misconceptions
Many companies assume they don’t qualify for SR&ED, often underestimating how broadly the program applies.
“People think their work isn’t complex enough,” Zittlau said. “The vast majority of companies that qualify are doing what would be considered experimental development, not pure academic scientific research like the program name suggest.”
A surprising aspect of the program? Your project doesn’t need to succeed to qualify.
“If you’re building a product, you’re iterating on it,” Zittlau said. “Those iterations can be a complete failure, and that still doesn’t disqualify you.”
He frames the credit as a return for the risk companies take when hiring people to do technical work. Canada’s goal is to incentivize businesses to attempt meaningful innovation – whether or not the experiment pans out.
Key SR&ED Changes You Should Know
Capital Expenditures (Re-introduced)
Capital expenditures, removed from the program a decade ago, are once again eligible expenses. This allows businesses to claim certain equipment and technology costs as part of their R&D investment.
Canadian Public Corporations Now Eligible for the Enhanced Rate
Another major change is that certain publicly traded Canadian corporations can now access the enhanced refundable credit rate, expanding who can benefit from SR&ED incentives.
Increase to the Expenditure Limit and Phase Out Thresholds
The expenditure limit for the fully refundable portion has increased from $3 million to $6 million, giving growing companies more room to secure refundable credits. Similarly, the prior year taxable capital phase-out thresholds have increased from $10 million and $50 million, to $15 million and $75 million, allowing more mid-sized companies to access the enhanced refundable ITCs.
Prep Smarter for SR&ED
Zittlau says that accurate tracking is imperative for SR&ED. Detailed time tracking and project record keeping should be in place.
“The number one reason I see people getting denied is that companies can’t back their claims,” Zittlau said. “If you can’t connect the work you’ve described to the dollar amounts you’re claiming, you won’t receive the credit.”
Do you need a SR&ED consultant?
While people can file SR&ED claims independently, Zittlau believes that businesses can benefit from a consultant like himself.
“I’m well versed in the guidelines and best practices of the program. When I help a company, I know the best way to present the work.”
This includes staying current with program changes and understanding how to apply them accurately – positioning businesses for the best chance of success
His strong suit? Communication.
While engineers may not be familiar with program requirements, and accountants may not understand the technical side, Zittlau is well-versed in both. This enables him to effectively coordinate with both groups and “parse the information down into a clean claim for the CRA.”
Still want to learn more?
If you’re curious to learn more, join us for a conversation with Will Zittlau about the SR&ED program and what Canadian businesses should know heading into 2026.
SR&ED 101: What Canadian Businesses Need to Know in 2025
Friday, November 28, 2025 | 11:00 AM PST
What they’ll cover:
- The fundamentals of SR&ED and who’s eligible
- Recent program updates and what to expect in 2026
- Practical advice for preparing and submitting your claim
Ready to join? Sign up here for the webinar: https://cjzt0.share.hsforms.com/2BESaVZHmRgKmZwFR97VJoA
Lets Get you Funded
While SR&ED tax credits aren’t part of our services at Granted Consulting, we specialize in helping Canadian companies access government grants and funding programs and making the process simpler, faster, and less stressful.
Our team guides you through grant applications and identifies funding opportunities that align with your business. We stay on top of the ever-changing landscape of available programs, so you never miss out on the support your business deserves.
Start today by trying our Grant Calculator to instantly see how much funding your business could qualify for.
