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 2017 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 2017 is 14.32 percent. For example, if an individual grower paid $100.00 in check off to Alberta Canola in 2017, $14.32 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.
Click here for SR&ED information on the Canada Revenue Agency Website
The Alberta Canola Producers Commission was the province’s first refundable check-off producer organization. The mandate of Alberta Canola is to increase the long term profitability of Alberta canola growers through research, consumer and producer education programs, and policy development.
For more information, please contact:
Alberta Canola Producers Commission
click here for information on the 2016 SR&ED Tax Credit for Alberta canola growers
Additional 2017 SR&ED tax credits are available for producers who paid check-off into the following organizations:
Alberta Wheat Commission – 21%
Alberta Barley – 17%
Alberta Oat Growers Commission – 11.8%
Alberta Pulse Growers – 13.7%
Western Grains Research Foundation – 71% for wheat; 75% for barley