AFO · Head-to-head
Both fund clean-tech R&D, but SDTC is a project-grant program with up-front approval and matching-capital rules, while SR&ED is a refundable tax credit claimed in arrears against the corporate return. On a clean-tech R&D project, the CPA almost always runs both — but the eligible expenditure pools and the timing rules are different, and double-claiming the same dollar is a compliance error.
Side by side
The matrix below pulls directly from the catalog. Each row shows the same data point across both programs so you can spot the differences at a glance.
| Attribute | Sustainable Development Technology Canada (SDTC) | SR&ED — Scientific Research & Experimental Development |
|---|---|---|
| Capital type | Government grant | Refundable tax credit |
| Family | Grants & refundable tax credits | Grants & refundable tax credits |
| Size range | $500,000 — $20,000,000 | $25,000 — No ceiling |
| Typical cost | Non-repayable contribution covering up to ~33% of eligible project costs; the Seed Fund stream covers up to ~50%. | CCPCs: 35% refundable on the first $3M of qualified expenditures, 15% non-refundable above. Provincial top-ups (Ontario, BC, Quebec, etc.) stack on top. |
| Speed to close | Months | Months |
| Eligibility | Canadian SME developing and demonstrating clean technology with quantifiable environmental and economic benefits. Matching capital from other sources is required. | Canadian-controlled private corporation (or other corporation) conducting basic research, applied research, or experimental development in Canada. Activities must address technological uncertainty and seek technological advancement. |
| Use of proceeds | R&D / innovation | R&D / innovation |
| Status | Coming soon | Live — self-serve |
Choosing between them
Each side describes the scenarios where the program is the stronger fit. Most real-world deals end up in the “in common” section below — neither/nor.
When to choose
Pick SDTC when the project is clean-tech development or demonstration with quantifiable environmental and economic benefits, the company has matching capital lined up (it's required), and the timeline accommodates the application cycle. Non-repayable contributions of up to ~33% of eligible project costs; the Seed Fund stream goes to ~50%.
When to choose
Pick SR&ED when the work is R&D-eligible technical-labour spend — software development, hardware engineering, process innovation — regardless of clean-tech relevance. SR&ED has no project-approval gate; eligibility is determined at claim time. 35% refundable on the first $3M of CCPC qualified expenditures, claimed in arrears with the T2.
On a clean-tech R&D project, the two stack — SDTC funds the project at the cost-share rate, SR&ED refunds the eligible-labour portion not already covered by SDTC. The CPA scopes the eligible pool so no dollar is claimed twice (the SDTC contribution reduces the SR&ED-eligible base), then files SR&ED inside the 18-month window.
The CPA can look at your specific situation and tell you in one twenty-minute call which program (or stack) is the right structure — and what providers will want to see before the first conversation.