You can and should still claim for SR&ED if you received other forms of government assistance. A SR&ED project accumulates eligible SR&ED expenditures, and when you claim SR&ED you receive a percentage of these expenditures as a tax credit or refund. These expenditures include wages and some types of materials and contracts. The SR&ED expenditure pool is simply reduced by the government assistance that is related to the SR&ED work, before the credit or refund is calculated.

It is worth claiming the SR&ED because the government assistance usually does not cover all the costs, and only the assistance related to the particular project’s SR&ED activities must be considered. Plus, SR&ED gives you a 55% overhead allocation based on the claimed labour. So even if the other government assistance covered all the SR&ED labour costs, you still get a SR&ED benefit based on the 55% overhead amount.

Additionally the plans, reports and tracking that may have been required to acquire the other assistance makes preparing the SR&ED claim a quick and efficient process.