Canola growers in Alberta that do not request a refund of their check off from the Alberta Canola Producers Commission qualify for a tax credit for the 2018 tax year.
The Scientific Research and Experimental Development (SR&ED) tax credit allows canola growers to claim the tax credit for that portion of the check off paid that was used to fund qualifying research.
“The tax credit is an additional benefit for growers who pay check-off on crops like canola”, says John Guelly a farmer from Westlock, Alberta and the Chair of Alberta Canola’s research committee. “Farmers are funding research into finding solutions to agronomic issues like clubroot, while being able to capture some of that investment back at tax time.”
The tax credit rate for Alberta canola producers in 2018 is 17.43 percent. For example, if an individual grower paid $100.00 in check off to Alberta Canola in 2018, $17.43 is the eligible amount to be earned as the tax credit.
The tax credit can:
offset federal taxes owing in the current year,
- be received as a tax refund,
- be carried forward up to 10 years to offset federal taxes owing, or
- be carried back 3 years to reduce federal taxes paid in those years.
- Individual producers must file a T2038 (IND). Farm corporations must file form T2SCH31.
For more information, contact the Canada Revenue Agency or your accountant.
More information on the SR&ED tax credit can be found on the Canada Revenue Agency Website at www.cra-arc.gc.ca/txcrdt/sred-rsde
Source: Alberta Canola