British Columbia scientific research and experimental development non-refundable tax credit

Other qualifying corporations, including CCPCs with SR&ED qualified expenditures that are more than their expenditure limit, may claim a non-refundable tax credit.

The non-refundable tax credit for a tax year is 10 % of the SR&ED qualified BC expenditure for that year less the total of:

• the amount of refundable credit for that year; and
• any amount renounced for that year

An active member of a partnership can also claim its share of the partnership's non-refundable tax credit for SR&ED carried on in British Columbia. Only partners that are qualifying corporations can claim the credit.

The credit may be deducted against the income tax payable for that year. You must claim the maximum tax credit available in the year it is earned. You can carry back an unused credit to the three previous tax years from the year the expenditures were incurred. You can also carry forward the unclaimed credit to the ten tax years that follow the tax year in which the expenditures were incurred.

A corporation that disposed of a property used in SR&ED, or converted it to commercial use, may be required to report a recapture of any British Columbia SR&ED tax credit previously calculated on that property. Any recapture will create or increase British Columbia tax otherwise payable.

Claiming the credit

File a completed Form T666, British Columbia Scientific Research and Experimental Development Tax Credit with the return.

You must file this form no later than 18 months after the end of the tax year in which the qualified expenditures are incurred (even if you do not claim the credit for that year).

For more information about these credits and the recapture, see the Form T666 and Part 6, sections 98, 99, and 102.1 to 102.6 of the British Columbia Income Tax Act.

On line 659 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the non-refundable credit you are claiming.

Reporting a recapture

To calculate the recapture, complete Form T666.

On line 241 of Schedule 5 enter the amount of recapture calculated.

Forms and publications

• Form T666, British Columbia Scientific Research and Experimental Development Tax Credit
• Schedule 5, Tax Calculation Supplementary - Corporations
• CIT 007, British Columbia Scientific Research and Experimental Development Tax Credit

Government partners

• British Columbia (provincial site)