Defined term
Refundable credit
Also: cash credit · payable credit
A credit that can produce a cash payment even when no tax is owed.
A refundable credit is paid to the claimant to the extent it exceeds tax liability, making it especially valuable to pre-profit or loss-making companies. Many R&D programs offer full or partial refundability only to smaller enterprises, CCPCs, or intensity-qualified claimants. Non-refundable credits may still reduce tax in profitable years or carry forward under local rules. Confirm refundability, caps, and carry rules for the relevant regime.
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Educational definition only. Not tax or legal advice. Confirm current program rules with official guidance and a qualified adviser.