Despite tension-filled anticipation of the 2012 federal budget announcement on March 29, Canada's Scientific Research and Experimental Development (SR&ED) program continues to be one of the most lucrative research and development (R&D) tax incentives in the industrial world. Last year, SR&ED awarded $3.6 billion in tax credits to Canadian corporations contributing in varying degrees to the Canadian R&D drive. The budget (Jobs, Growth and Long-Term Prosperity: Economic Action Plan 2012) turned out to be a pleasant surprise for SR&ED stakeholders and claimants, as serious cuts to the program were rumored in the days preceding the budget announcement. The 35 percent enhanced Investment Tax Credit (ITC) rate survived the few key modifications to the program. Further revisions, however, will have an impact on companies within the renewable energy industry.