2024 Tax Credit – 14% of MPSG check-off
Farmers who contribute check-off dollars to the Manitoba Pulse & Soybean Growers (MPSG) are eligible to claim a federal tax credit through the Scientific Research and Experimental Development (SR&ED) program. The tax credit is based on the amount of check-off funds invested in research and development that meet specific criteria set out by the Canada Revenue Agency (CRA).
For the 2024 tax year, 14% of the Manitoba pulse check-off qualifies for the SR&ED tax credit.
Farmers can calculate their total check-off contribution by referring to their pulse and soybean sales receipts. Of this total, 14% is eligible to earn an investment tax credit for 2024. As an individual, farmers can claim this tax credit up to a maximum of 15% while corporations are able to claim at the rate of 35%.
To claim the federal tax credit on your tax returns, you must file a T2038 (IND) for farm proprietorships or a T2SCH31 for farm corporations. Click here to see examples for the T2038 (IND) Individual Claim or the T2SCH31 Corporate Claim.
The investment tax credit earned may be used to offset federal tax owing in the current year; or if you do not owe federal tax in the current year a portion may be refunded to you as an individual or all may be refunded if you are a corporation (CCPC). Other options include carrying the credit forward up to 10 years to offset federal tax or carried back up to three years. All check-off investment tax credit applied against taxes payable, or refunded, must be reported by the producer as income in the subsequent year.
Click here to see more...