Canada's Scientific Research and Experimental Development (SR&ED) tax credit offers incentives for innovation. The Basic SR&ED credit provides up to 35% on eligible expenditures for qualifying R&D activities. The Enhanced SR&ED credit extends this benefit to small to medium-sized businesses, offering an additional 15% tax credit. Furthermore, the refundable SR&ED tax credit provides cash refunds for eligible expenses, which is particularly beneficial for startups and companies with minimal taxable income. These credits aim to foster technological advancement and competitiveness within Canada by supporting research and development efforts across various industries.