# Canadian Grants & Tax Credits Glossary | GrantOps

A comprehensive glossary of key terms related to Canadian government grants, tax credits, and innovation funding programs. Understanding these terms is essential for maximizing your recovery through programs like SR&ED, IRAP, and CanExport.

## Key Terms

### SR&ED (Scientific Research and Experimental Development)
Canada's largest federal R&D tax incentive program, administered by the CRA. Provides 15-35% investment tax credits on eligible R&D expenditures. Claims are filed using Form T661.

### Investment Tax Credit (ITC)
A non-refundable or refundable credit that reduces the amount of federal tax owed. SR&ED ITCs are earned on qualified R&D expenditures. CCPCs can receive refundable ITCs at the enhanced 35% rate on the first $3 million in eligible spending.

### CCPC (Canadian-Controlled Private Corporation)
A private corporation that is resident in Canada and not controlled by non-residents or public corporations. CCPCs receive the enhanced 35% refundable SR&ED ITC rate.

### T661 Form
The CRA form used to claim SR&ED tax credits. It includes eight parts covering claimant information, project descriptions, expenditure details, and technical narratives describing technological uncertainty, hypothesis, systematic investigation, and advancement.

### Technological Uncertainty
One of the four pillars of an SR&ED claim. Exists when the outcome of an R&D activity cannot be determined in advance based on standard practice, publicly available knowledge, or the experience of qualified personnel.

### Systematic Investigation
The methodical process of formulating hypotheses and testing them through experimentation or analysis to resolve technological uncertainty. A core requirement for SR&ED eligibility.

### Technological Advancement
New knowledge or capability gained through systematic investigation that goes beyond standard practice. It does not need to be a breakthrough — incremental advances qualify.

### IRAP (Industrial Research Assistance Program)
An NRC program that provides non-repayable contributions of up to $10 million to Canadian SMEs for R&D and commercialization projects. Includes advisory services from Industrial Technology Advisors (ITAs).

### CanExport SMEs
A Government of Canada program providing non-repayable contributions of up to CAD $50,000 per new target market to help Canadian SMEs develop new export opportunities. Administered by the Trade Commissioner Service.

### Non-Repayable Contribution
Government funding that does not need to be paid back, as opposed to repayable contributions or loans. IRAP and CanExport provide non-repayable contributions.

### Proxy Method
A simplified method for calculating SR&ED overhead costs. Under the proxy method, overhead is calculated as 55% of the salary base of employees directly engaged in SR&ED work.

### Eligible Expenditures
Costs that qualify for SR&ED tax credits, including salaries of R&D employees, subcontractor fees (at 80%), materials consumed or transformed during R&D, and overhead calculated via the proxy or traditional method.

### Stacking
The practice of combining multiple government incentive programs on the same or related activities to maximize total recovery. For example, combining federal SR&ED credits with provincial R&D credits and IRAP contributions.

### Contingency Fee
A fee charged by SR&ED consultants based on a percentage (typically 15-25%) of the claim value recovered. GrantOps eliminates the need for contingency-fee consultants through AI automation.

### Audit Defence Package
A collection of supporting evidence linked to each SR&ED claim element — including source code commits, project tickets, meeting notes, and technical documentation — prepared proactively to withstand CRA review.

## Learn More

- Full glossary and program guides: https://grantops.ai/en/glossary/
- SR&ED automation: https://grantops.ai/en/sred/
- IRAP applications: https://grantops.ai/en/irap/
- CanExport grants: https://grantops.ai/en/canexport/
- Browse 5,500+ programs: https://grantops.ai/en/programs/
- Get started: https://app.grantops.ai