# SR&ED for Construction & Engineering | R&D Tax Credits | GrantOps

Construction and engineering companies across Canada can claim SR&ED tax credits for novel building materials development, structural engineering innovations, sustainable construction methods, BIM technology development, and prefabricated/modular construction research. While routine construction does not qualify, the R&D that drives construction innovation frequently meets CRA's three-part test.

## What Construction & Engineering R&D Qualifies for SR&ED?

Construction and engineering projects that typically qualify include:

- Developing novel building materials — new concrete formulations, high-performance insulation, self-healing materials, composite structural elements
- Structural engineering innovations — novel structural systems, seismic-resistant designs, long-span structures beyond code-prescribed solutions
- Sustainable construction methods — net-zero building systems, passive house technologies, mass timber innovations, carbon-negative approaches
- BIM technology development — novel design optimization algorithms, AI-driven structural analysis, generative design, digital twin systems
- Prefabricated and modular construction — new panel systems, automated manufacturing processes, robotics assembly, novel connection details
- Geotechnical innovations — novel foundation systems, ground improvement techniques, subsurface construction methods
- Construction process automation — robotics, automated quality assurance, IoT-driven site monitoring with novel analytical approaches

## What Does NOT Qualify

- Routine construction using established methods and standard building codes
- Standard architectural design following known principles
- Installing commercial off-the-shelf building products as intended
- Routine site surveys, soil testing, and inspections using standard methods
- Project management, scheduling, and cost estimation

## SR&ED Rates for Construction & Engineering Companies

- **CCPCs**: 35% refundable credit on first $3M of qualifying expenditures — covers engineer salaries, materials consumed in testing, subcontractor costs
- **Other corporations**: 15% non-refundable credit
- **Provincial top-ups**: Ontario (10%), Quebec (up to 30%), BC (10%), Alberta (8%)

Subcontractor costs for specialized testing (structural labs, materials testing facilities) are eligible at 80%. Materials consumed or transformed during experimentation 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