Tax Credit for the 2023 Tax Year Available for Canola Growers

Tax Credit for the 2023 tax year available to Canola growers in Alberta

Edmonton, AB – February 5, 2024 – The Scientific Research and Experimental Development (SR&ED) tax credit rate for canola growers in Alberta is 12.49 percent for 2023. 

The SR&ED enables canola growers to claim a tax credit for the portion of their service charge payment that was used to fund qualifying research. Growers who request a refund of their service charge are ineligible to claim the SR&ED tax credit.

Alan Hampton, the Chair of Alberta Canola’s research committee, emphasizes the added value for growers contributing to the canola service charge. “Farmers can recover a portion of their dollars invested by the Commission in research through the SR&ED tax credit.” Hampton adds, “Alberta Canola does a great job to partner on projects and stretch our research budget to address challenges like blackleg and clubroot disease management, as well as monitoring insect pests for susceptibility and resistance to insecticides.”

For example, an individual grower that paid a service charge of $1000 to Alberta Canola in 2023, will be eligible to claim a $124.90 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 20 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), while farm corporations are required to file a T2SCH31 form. For additional details, growers are encouraged to reach out to the Canada Revenue Agency or consult their accountants.

Click here for SR&ED information on the Canada Revenue Agency website.