SR&ED Material Expenditures

Materials definition

All the raw materials, substances, or items that constitute the body of a thing at a specific point in the SR&ED process are eligible for inclusion in your SR&ED expenditures, including items such as:

• Consumables, like lab supplies and test materials
• Raw materials used to create prototypes
• Prototype materials
• Testing and measurement equipment
• Materials for systematic experimentation
• Materials for building prototypes

These materials should directly relate to your research and development work, and their use should be well-documented.

Material Consumed

• Absorbed
• Used up
• Broken down
• Destroyed

Material Transformed

• Changed or incorporated into product or process
• Materials transformed sold = Investment tax credit recapture