Farmers may qualify for a Scientific Research and Experimental Development tax credit
By Diego Flammini
Some Alberta canola producers may be eligible for a tax credit related to check off dollars.
Farmers who didn’t request a refund of their check-off from the Alberta Canola Producers Commission qualify for a Scientific Research and Experimental Development (SR&ED) tax credit for the 2021 year.
The tax program “uses tax incentives to encourage Canadian businesses of all sizes and in all sectors to conduct research and development in Canada,” the program’s website says.
For 2021, the tax credit rate for canola growers in Alberta is 14.59 per cent.
This means if a producer paid $1,000 in check-off to the organization, $145.90 is eligible to earn the tax credit.
Alberta Canola has multiple research projects on the go with some slated to finish this year.
One project, for example, is studying clubroot inoculum management for sustainable canola production.
The study will help determine the spore population levels that are safe for the use of clubroot-resistant cultivars and develop a knowledge-based resistance development strategy.
Producers are helping further these kinds of research projects and should receive some of that investment back when possible, said John Mayko, chair of Alberta Canola’s research committee.
“The tax credit is an additional benefit for growers who contribute check-off on canola”, he said in a statement. “Farmers are funding research looking for ways to better grow canola. The SR&ED tax credit allows farmers to capture some of that investment back at tax time.”
Farmers who contribute check-off funding to other Alberta ag organizations will be eligible for tax credits too.
This includes the Alberta Wheat Commission, Alberta Pulse Growers, Prairie Oat Growers – Alberta and Alberta Barley.