SR&ED Tax Credit

In addition to the satisfaction of knowing that check-off dollars are invested in valuable research that keeps Western Canada at the forefront of crop development, wheat and barley producers are entitled to a tax credit on invested monies.

In 2012, the tax credit to producers was 85% for the Wheat Check-off and 86% for Barley Check-off. This was calculated based on the amount of check-off dollars spent directly on research. Please note that the Alberta barley check-off is collected by the Alberta Barley Commission and is subject to a different tax credit rate.

Producers can calculate their total check-off contribution by referring to their wheat and barley sales receipts, which show the check-off allocation. Of this total, a certain percentage each year is eligible to earn an investment tax credit. This resulting check-off amount is eligible to earn an investment tax credit up to a maximum of 20% for individuals and up to a maximum of 35% for corporate producers that are Canadian controlled private corporations.

To claim the federal tax credit on their tax returns, growers must file a T2038 (IND) for farm proprietorships or a T2SCH31 for farm corporations. For more information on the process of claiming the tax credits, please consult your accountant. For information on the federal SR&ED investment tax credit, visit Canada Revenue Agency website – SR&ED.

2011 – 84% for wheat and 83% for barley.
2010 – 74% for wheat and 69% for barley.
2009 – 83% for wheat and 76% for barley.