Scientific Research and Experimental Development (SR&ED) tax incentives

Pre-claim approval

The pre-claim approval (PCA) allows you to receive an upfront determination from the Canada Revenue Agency (CRA) on whether your planned project(s) meet(s) the definition of SR&ED, before you have started working on the project(s).

To obtain a PCA, you must demonstrate:

• The project addresses a scientific or technological uncertainty
• The project must involve a systematic investigation or search conducted within a field of science or technology through experimentation or analysis

You can request a PCA for up to 3 projects.

The CRA does not grant a PCA on your project expenditures. The CRA will assess expenditures when you file your SR&ED claim using Form T661. If you submit an SR&ED claim through this elective process and it includes only pre-approved projects, your claim will follow an expedited processing timeline will be reduced from 180 days to 90 days.

Eligibility

To qualify for a PCA, you must meet the following requirements.

Your business must:

• Carry on a business and conduct SR&ED activities in Canada
• Be one of the following:
  • Canadian-controlled private corporation
  • Other Canadian corporation
  • Partnership
• Have a gross business income of less than $25M

The projects must not:

• Have already been reviewed and received an eligibility determination
• Involve issues that are currently under notice of objection or in litigation

Request a PCA and complete your application

1. Complete the PCA request form

   Start by filling out a Pre-claim approval request

2. CRA review and initial contact

   After you submit the request, the CRA will review your eligibility and will contact you to:

   • Provide a reference number and instructions for next steps

   • Explain why a PCA cannot be offered

3. Submit your PCA application

   If your request is accepted, you must:

   • Complete the PCA application form
   • Upload the application and supporting project information through My Business Account

4. CRA Review and determination

   Once CRA receives your application:

   • A Research and Technology Advisor (RTA) will be assigned to your file
   • The RTA will review your proposed project plan(s) to determine if they meet the definition of SR&ED
   • The RTA will contact you to arrange a meeting focused on the technical details of your proposed project(s)
   • You will receive a written letter confirming whether your project(s) are pre-approved

Contact

If you have questions about the PCA, contact your coordinating tax services office.