Alberta wheat farmers and the SR&ED tax credit

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Wheat farmers paying the Alberta Wheat Commission (AWC) check-off are eligible for a tax credit through the Scientific Research & Experimental Development (SR&ED) program for their investment in AWC funded research and development (R&D) projects. The rate for the 2018 tax year is 17 per cent.

AWC-funded research focuses on genetic and agronomic improvements aimed at improving the long-term profitability of Alberta’s wheat producers.

The federal SR&ED program encourages R&D investment through tax-based incentives, giving claimants tax credits for their expenditures on eligible R&D work. The tax credit percentage is based on the amount invested in R&D that meets the criteria laid out by the Canada Revenue Agency (CRA).

Farm individuals should use form T2038 (IND) to claim this credit when filing their taxes while farm corporations must use form T2SCH31.

For more information, contact the Canada Revenue Agency directly, or visit the CRA website.

Producers who have requested a refund of their check-off are not eligible for the tax credit.

Source: Alberta Agriculture and Forestry