Top Crop Manager

News Business & Policy Canola
2019 tax credit open to Alberta canola farmers


February 3, 2020
By Top Crop Manager

Topics

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 2019 tax year.

“The tax credit is an additional benefit for growers who pay check-off on crops like canola,” says John Mayko a farmer from Mundare, Alta. and 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 Scientific Research and Experimental Development (SR&ED) tax credit allows canola growers to claim the tax credit for the portion of the check-off paid that was used to fund qualifying research.

The 2019 tax credit rate for canola producers in Alberta is 23.69 per cent; in other words, for every $100 a grower paid in check-off to Alberta Canola in 2019, $23.69 would be the eligible amount earned as the tax credit.

The tax credit can be used in the following ways:

  • 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, visit the CRA website or contact your accountant.