Each year Canadian businesses receive $ 3 billion in tax credits through the Scientific Research and Experimental Development program administered by the Canada Revenue Agency (“CRA”) . This program is designed to encourage Canadian businesses to conduct research and development in Canada.
Depending on which province you live in, you could recover up to two-thirds of the money you spent on salaries, one-third of what you spent on subcontractors, and two-fifths of the costs of materials to build a prototype.
A detailed description of the program is available on the CRA website found at the link below.
Click here to go to the Scientific Research and Experimental Development (SR&ED) tax incentives page
The application process can be complicated so you will probably benefit from the assistance of a tax professional in making an application.