Ideas in this flowchart

• For taxation years beginning after December 15, 2024, the maximum expenditure limit is $6M for CCPCs and ECPCs.
• The new $6M limit applies to taxation years beginning after December 15, 2024.
• CCPC rules use taxable capital or an elected revenue-based method to reduce the expenditure limit.
• For CCPCs, the gradual reduction begins at $15M of taxable capital used in Canada in the previous taxation year.
• The CCPC expenditure limit is reduced to nil after $75M of taxable capital used in Canada.
• CCPCs may elect to calculate the reduction using revenue rather than taxable capital.
• For ECPCs, the gradual reduction is calculated using average annual revenue over the last three fiscal years.
• The rules concern the refundable investment tax credit, qualifying corporations, qualifying income limits, and ECPCs.
• The summary is attributed to Neal Armstrong and the CRA webpage SR&ED Investment Tax Credit Policy dated 7 October 2026.
• The cited provisions include sections 127(5), 127(9), 127(10.1), 127(10.2), 127(10.3), 127(10.5), 127.1(2), and 220(7).