# SR&ED for Clean Technology | Green R&D Tax Credits | GrantOps

Clean technology companies across Canada can claim SR&ED tax credits for renewable energy R&D, carbon capture research, battery and energy storage development, hydrogen fuel cell innovation, and sustainable materials science. The experimental nature of cleantech R&D — developing systems with uncertain performance, testing novel materials, and scaling unproven processes — aligns directly with CRA's definition of systematic investigation to resolve technological uncertainty.

## What Clean Technology R&D Qualifies for SR&ED?

Clean technology projects that typically qualify include:

- Developing novel solar cell materials, wind turbine designs, or hybrid energy systems with uncertain efficiency
- Battery research — new chemistries (solid-state, sodium-ion, flow batteries), energy density improvements, and cycle life optimization
- Hydrogen production R&D — green electrolysis, novel catalysts, PEM fuel cell development, and storage solutions
- Carbon capture and sequestration — direct air capture systems, novel sorbent materials, and mineralization processes
- Sustainable materials — bio-based polymers, recyclable composites, low-carbon cement, and self-healing materials
- Water and waste treatment — novel purification systems, resource recovery technologies, and circular economy processes
- Smart grid technology — AI-driven energy management, demand forecasting, and intermittent source integration

## Stack SR&ED with Clean Economy Investment Tax Credits

Canada's Clean Economy ITCs can be combined with SR&ED for maximum R&D recovery:
- **Clean Technology ITC (30%)**: For investments in clean energy equipment (solar, wind, batteries, zero-emission vehicles)
- **Clean Hydrogen ITC (15-40%)**: Tiered credit based on carbon intensity of hydrogen production
- **Carbon Capture ITC (up to 60%)**: For CCUS equipment — SR&ED covers the R&D, this ITC covers deployment
- **Clean Electricity ITC (15%)**: For clean electricity generation infrastructure

SR&ED covers R&D expenditures (salaries, materials, subcontractors); Clean Economy ITCs cover capital equipment. The same project can generate both.

## SR&ED Rates for Cleantech Companies

- **CCPCs (most cleantech startups)**: 35% refundable credit on first $3M of qualifying expenditures
- **Other corporations**: 15% non-refundable credit
- **Provincial top-ups**: Ontario (10%), Quebec (up to 30%), BC (10%), Alberta (8%)

Materials consumed during experimentation (chemical feedstocks, catalyst samples, prototype components) are fully claimable.

- Automate your SR&ED claim: https://grantops.ai/en/automate-sred/
- Full SR&ED guide: https://grantops.ai/en/sred/
- Get started: https://app.grantops.ai