Get an R&D tax break on your checkoff

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It’s that time of year again for claiming tax credits on checkoffs.

The Scientific Research & Experimental Development Fund (SR&ED) program encourages R&D investment by giving tax credits on eligible R&D work.

The tax credit on checkoffs paid to Alberta Wheat for 2020 is 31 per cent; the tax credit for Alberta canola checkoffs is 21.3 per cent; the credit for Alberta Pulse Growers checkoffs is 19.5 per cent; and the credit for Alberta Barley checkoffs is seven per cent.

“The tax credit is an additional benefit for growers who pay checkoff on crops like canola,” said John Mayko a Mundare-area producer and chair of Alberta Canola’s research committee. “Farmers are funding research into finding agronomic solutions for growing canola and human nutritional research to help grow market demand. The SR&ED tax credits allow farmers to capture some of that investment back at tax time.”

The tax credit percentage is based on the amount invested in R&D that meets Canada Revenue Agency.

Individuals should use form T2038 (IND) to claim this credit when filing their taxes, while farm corporations must use form T2SCH31. To download the form and for general information, go to and enter the name of the form (either T2038 or T2SCH31) in the search box.

The tax credit can be used to offset federal taxes owing in the current year; to receive 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.

Farmers who have requested a refund of their checkoff are not eligible for the tax credit.

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