Scientific Research and Experimental Development (SR&ED)
Wheat producers who pay the Alberta Wheat Commission (AWC) provincial check-off and do not request a refund are eligible for a tax credit through the Scientific Research and Experimental Development (SR&ED) program for their investment in AWC-funded research and development (R&D) projects.The tax credit percentage is based on the dollar amount AWC has invested in R&D that meets the criteria laid out by the Canada Revenue Agency (CRA).
The SR&ED Program is a federal tax incentive program designed to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada. The program is administered by the Canada Revenue Agency (CRA), which delivers SR&ED tax incentives in a timely, consistent and predictable manner, while encouraging businesses to prepare their claims in compliance with Canada’s tax laws and the CRA’s policies and procedures.
For more information contact the Canada Revenue Agency directly, or visit the Canada Revenue Agency - SRED - Revenue Canada Website.
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. AWC research investments focus on genetic and agronomic improvements aimed at improving the long-term profitability of Alberta’s wheat producers.
Farm individuals should use form T2038 (IND) to claim this credit when filing their taxes and farm corporations must use form T2SCH31.
For the 2015 tax year, 20 per cent of producers' check-off is eligible for the federal SR&ED tax credit. For example, for an individual grower that paid $100.00 in check-off to AWC in 2015, $20,00 is eligible to earn in tax credits.