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Barley producers can claim 11 per cent SR&ED credit on 2022 taxes
March 7, 2023 By Top Crop Manager
Barley producers who pay checkoff through Alberta Barley and do not request a refund are eligible for an 11 per cent tax credit through the Scientific Research and Experimental Development Fund (SR&ED) program for their investment in barley research and development (R&D) projects. For example, producers who paid $100 in checkoff to Alberta Barley in 2022 would earn $11 in tax credit.
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 incredibly beneficial and I would encourage all eligible barley growers to utilize it,” says Alberta Barley chair, Tara Sawyer. “If you’re a producer who pays Alberta Barley checkoff, this is an excellent financial incentive to apply to your on-farm operations.”
Farm individuals should use form T2038 (IND) to claim this credit when filing taxes, while farm corporations must use form T2SCH31.
As for wheat producers who pay check-off through the Alberta Wheat Commission (AWC) and do not request a refund, they are eligible for a 74 per cent tax credit through the SR&ED program for their investment in wheat R&D projects. For example, producers who paid $100 in check-off to AWC in 2022 would earn $74 in tax credit.
Producers who have requested a refund of their checkoff are not eligible for the tax credit.
