Alberta wheat farmers who paid the Alberta Wheat Commission (AWC) check-off and did not request a refund are eligible to receive a 20 percent tax credit under the Scientific Research & Experimental Development (SR&ED) program for their investment in AWC-funded wheat research. For example, farmers who paid $100 in check-off to AWC in 2016 would earn $20 in tax credit.
AWC’s SR&ED percentage reflects the commission’s investment in research and development projects that meet the criteria laid out by the Canada Revenue Agency (CRA) over the 2016-17 year.
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. AWC research investments focus on genetic and agronomic improvements aimed at improving the long-term profitability of Alberta’s wheat producers.
Farm individuals should use form T2038 (IND) to claim this credit when filing their taxes and farm corporations must use form T2SCH31.
Source : AlbertaWheat