SR&ED Tax Credit Tracking

Folio AI automatically flags potential SR&ED expenditures as documents move through the review workflow — so nothing gets missed at filing time.

The opportunity firms leave on the table

The Scientific Research and Experimental Development program is one of Canada's largest tax incentive programs, yet qualifying expenditures are routinely missed because they were never identified during the bookkeeping process. By the time a firm reviews for SR&ED eligibility, the documentation trail is incomplete.

Folio AI embeds SR&ED identification directly into the document workflow — before entries are approved and synced to QuickBooks. Every flagged item is documented from the moment it enters the system.

How SR&ED tracking works

Automatic flagging

Folio AI analyzes vendor category, description, and amount as part of extraction. Items that match SR&ED expenditure patterns — materials, subcontractors, equipment — are flagged for review with a confidence score.

ITC estimates

For flagged items, Folio AI calculates estimated Investment Tax Credits: 35% federal on the first $3M for CCPCs, 15% above. Provincial credits applied based on the filing entity's province.

Audit-ready documentation

Every SR&ED-flagged item retains the original document, extracted fields, reviewer decisions, and correction history. The audit trail is complete from day one — not reconstructed at filing time.

Review queue integration

SR&ED flags appear directly in the standard review workflow. Your team confirms, adjusts, or removes the flag without leaving the bookkeeping interface. No separate tool or spreadsheet required.

Federal ITC rates at a glance

Canadian-Controlled Private Corporation (CCPC)

35% on first $3M, 15% above

Other Canadian corporation

15%

Individual or trust

15%

Provincial rates

Vary — Ontario, Quebec, and BC have additional credits

ITC estimates are indicative only. Consult a qualified SR&ED consultant for filing purposes.

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