April 30, 2026
BIOTECanada welcomes the federal government’s 2026 Spring Economic Update as an important signal of continued progress on measures that support Canada’s life sciences sector and the conditions companies need to grow. These updates reflect constructive collaboration between government and industry, including the association’s ongoing advocacy to improve the effectiveness and accessibility of the SR&ED program.
The update confirms implementation of SR&ED administrative improvements first announced in Budget 2025, following Royal Assent for Bill C-15 on March 26, 2026. These provisions included “enhancing the SR&ED program by increasing the annual expenditure limit and taxable capital phase-out thresholds for the enhanced 35% SR&ED credit, extending the enhanced credit to eligible Canadian public corporations and restoring the eligibility of SR&ED capital expenditures;” (Budget 2025 Implementation Act, No. 1)
“The CRA incorporated feedback from businesses and industry associations into the design of the pre-claim approval process, which can be completed in four easy steps and provides businesses with an eligibility determination within eight weeks. For claims submitted through this elective process that require an expenditure review, processing time will be cut in half to 90 days from 180 days.
These improvements underscore the government’s commitment to co-developing solutions with industry partners and to continuing to modernise the SR&ED program’s administration to meet businesses’ needs.” (Government of Canada’s 2026 Spring Economic Update, p.67).
For Canada’s life sciences sector, this is an important step forward and the result of sustained advocacy, including issues BIOTECanada has raised through recent federal consultations on SR&ED and (Phase 2), pre-budget submissions, patent box, and the Biomanufacturing and Life Sciences Strategy. SR&ED is a key federal tool for supporting R&D in Canada, and greater certainty can help research-intensive companies plan, manage costs, and move projects toward commercialization. It is also one part of a healthy life sciences ecosystem, alongside access to investment capital, non-dilutive funding, and commercialization pathways.
Canada’s life sciences sector has attracted more than $30 billion in investment in recent years, demonstrating both the strength of the sector and the scale of the opportunity. BIOTECanada will continue working with government, and advocate for dedicated investment tools, including a $350 million Life Sciences Fund under the Venture Capital Catalyst Initiative and improved access to non-dilutive funding, to ensure the unique financing needs of biotech companies are met.