Source: Alberta Wheat Commissions
Wheat producers who pay check-off through the Alberta Wheat Commission (AWC) and do not request a refund are eligible for a 74 per cent tax credit through the Scientific Research and Experimental Development Fund (SR&ED) program for their investment in wheat research and development (R&D) projects. For example, producers who paid $100 in check-off to AWC in 2022 would earn $74 in tax credit.
Seventy-four per cent is the highest amount claimable in the history of the SR&ED program. This is due to the high ratio of research investments made by AWC in relation to the revenue from check-offs in the 2022 tax year which were reduced by approximately 40 per cent due to the 2021 drought.
The federal SR&ED program encourages R&D investment through tax-based incentives, giving claimants tax credits for their expenditures on eligible R&D work. The tax credit percentage is based on the amount invested in R&D that meets the criteria laid out by the Canada Revenue Agency (CRA).
“The SR&ED program is extremely valuable, and I would encourage all eligible wheat farmers to make their claim,” says AWC chair, Greg Sears. “If you’re a wheat producer in Alberta who pays checkoff, I cannot recommend the SR&ED program enough, especially given that the tax credit is higher than it’s ever been before.”
Farm individuals should use form T2038 (IND) to claim this credit when filing taxes, while farm corporations must use form T2SCH31.
For more information, contact the Canada Revenue Agency directly, or visit the CRA website.
Producers who have requested a refund of their check-off are not eligible for the tax credit.
For more information about claiming SR&ED credit, please contact:
Chief Operating Officer
Alberta Wheat and Barley Commissions