Wheat producers who pay checkoff through the Alberta Wheat Commission and do not request a refund are eligible for a 74 per cent tax credit through the Scientific Research and Experimental Development Fund (SR&ED) program for their investment in wheat research and development projects.
For example, producers who paid $100 in checkoffs to AWC in 2022 would earn $74 in tax credit.
Seventy-four per cent is the highest amount claimable in the history of the program. This is due to the high ratio of research investments made by AWC in relation to the revenue from checkoffs in the 2022 tax year, which were reduced by approximately 40 per cent due to the 2021 drought.
The federal program encourages research and development investment through tax-based incentives, giving claimants tax credits for their expenditures on eligible work. The tax credit percentage is based on the amount invested that meets the criteria laid out by the Canada Revenue Agency.
Farmers should use form T2038 (IND) to claim this credit when filing taxes. Farm corporations must use form T2SCH31.
For more information, visit the CRA website.
