# SR&ED for Manufacturing Companies | GrantOps

Manufacturing R&D is a core category of SR&ED-eligible work. Canadian manufacturers conducting process improvements, materials research, prototype development, and production innovation can claim 15-35% of qualifying R&D expenditures as tax credits through the SR&ED program.

## What Manufacturing R&D Qualifies for SR&ED?

Manufacturing projects that typically qualify include:

- Developing new manufacturing processes or significantly improving existing ones where the outcome is uncertain
- Materials research — testing new alloys, composites, polymers, or coatings with unknown performance characteristics
- Prototype development and testing when the design involves technological uncertainty
- Custom tooling and fixture development requiring novel engineering approaches
- Process automation and robotics integration with technically challenging requirements
- Quality improvement research involving systematic experimentation to resolve defects or variability
- Energy efficiency and waste reduction R&D requiring novel approaches beyond standard engineering practice

## SR&ED Rates for Manufacturers

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

Materials consumed or transformed during SR&ED experimentation are fully claimable. GrantOps connects to your ERP and project management tools to automatically identify eligible activities and calculate qualifying expenditures.

- 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