What’s up for today?

> The SR&ED program’s annual statistics are officially out and there are some interesting patterns!

> No-code tools can supercharge your speed to market, but there’s an important caveat…
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Read time: 2 mins

New program statistics for SR&ED

SR&ED is heating up! Between 1 April 2024 to 31 Mar 2025, startups and innovators filed a record 22,758 claims—up nearly 6% from the previous year —with $4.7 billion in tax credits on the table. Software leads the pack, snagging over 40% of allowed credits, while processing times for straightforward claims got even faster. However, there’s a slight uptick in denied claims and a dip in speedy refunds, so attention to detail matters more than ever. If you’re investing in R&D, now’s the time to leverage SR&ED’s growing support—just make sure your claims are audit-ready! The program stats are published on CRA’s website here.

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No-code tools are great, but…know the risks

The What?

​Builder.ai made the news recently, for all the wrong reasons. Their product was a low code/ no code development platform until they shut down operations amidst reports of sales inflation and potential insolvency.

The So What?

Don’t overlook the risk of not having access to your source code. Builder.ai’s collapse is a stark reminder for tech founders of the critical importance of having full access to your source code. Low-code and no-code tools are great to hit the ground running and get your MLP (minimum loveable product) shipped, but plan for portability (if you can). While many popular platforms like Retool do not give you source code access, some do (like NocoBase, BudiBase or Appsmith). If your workflow allows it - overweight these options during your due diligence. Not only does it give you a fallback should your provider go under, but it keeps potentially SR&ED eligible work under your control.

For SR&ED focussed teams

For Canadian tech companies, this is not just a technical best practice, but a foundational requirement to maximize your SR&ED. Why, you ask?

• SR&ED Documentation: To substantiate an SR&ED claim in the event of an audit, you must provide detailed technical documentation, including source code, design documents as evidence of experimental development. If your development is locked in a proprietary platform (like Builder.ai or others like it), you may be unable to access or export the necessary artifacts.
• IP and Continuity Risks: When a platform provider collapses, you risk losing access to your intellectual property, technical records, and the ability to demonstrate eligible SR&ED work. This can jeopardize your claim and reduce your refund.
• Audit Readiness: CRA auditors frequently request source code and technical logs to verify the claimed work. Lack of access can lead to denied or significantly reduced claims.