British Columbia scientific research and experimental development refundable tax credit

A qualifying corporation that carried on scientific research and experimental development (SR&ED) in British Columbia and that is a Canadian-controlled private corporation with a permanent establishment in the province can claim this refundable credit.

The credit can be claimed on SR&ED expenditures incurred in the tax year in the province before September 1, 2014, and is equal to 10% of whichever of the following amounts is less:

• the SR&ED qualified BC expenditure for the tax year; or
• the expenditure limit for the tax year.

An active member of a partnership to 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.

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.

For information on the non-refundable credit, see British Columbia scientific research and experimental development non-refundable tax credit.

Claiming the credit

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

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

On line 674 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the refundable credit you are claiming.

You must claim the credit no later than 18 months after the end of the tax year in which the qualified expenditures are incurred.

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)