Canola growers in Alberta who do not request a refund of their checkoff from the Alberta Canola Producers Commission (ACPC) qualify for a tax credit for the 2012 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 checkoff paid that was used to fund qualifying research.
The rate for Alberta canola producers in 2012 is 7.02 per cent. For example, for an individual grower who paid $100 in checkoff to the ACPC in 2012, $7.02 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 10 years to offset federal taxes owing, or
- Be carried back three 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, or search for SR&ED information on the Canada Revenue Agency website.
