Tax Credit for the 2021 Tax Year Available to Canola Farmers in Alberta

February 1, 2022

Tax Credit for the 2021 Tax Year Available to Canola Farmers in Alberta

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 2021 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 contribute check-off on canola”, says John Mayko a farmer from Mundare, Alberta and the Chair of Alberta Canola’s research committee. “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.”

The tax credit rate for canola producers in Alberta for 2021 is 14.59 percent.

For example, for an individual grower that paid $1000.00 in check off to the Alberta Canola in 2021, $145.90 is eligible to earn 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

For more information, please contact:

Brittany Visscher, MSc PAg
Research Director, Alberta Canola

click here for information on previous SR&ED Tax Credits for Alberta canola growers

Additional 2021 SR&ED tax credits will be available for producers who paid check-off into the following organizations 

Alberta Wheat Commission
Alberta Barley
Alberta Pulse Growers
Prairie Oat Growers – Alberta

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