Tax Credit for the 2022 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 2022 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 Alan Hampton a farmer from Rowley, Alberta and the Chair of Alberta Canola’s research committee. “Farmers are funding research looking for ways to better grow canola. This includes research into agronomic issues such as blackleg and clubroot disease management, and the monitoring of insect pests for susceptibility and resistance to insecticides. 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 2022 is 20.93 percent.

For example, for an individual grower that paid $1000.00 in check off to the Alberta Canola in 2022, $209.30 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 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). 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

Media contact:
Michelle Chunyua
Manager of Communications
Alberta Canola
michelle@albertacanola.com
(587) 525 – 5939