On February 23, 2022, the Alberta Wheat Commission announced that Alberta Wheat growers who did not request a refund of their check-off fees qualify for an SR&ED tax credit for the 2021 tax year at a rate of 31%
Alberta Wheat Growers 2021 SR&ED Tax Credits
The Alberta Wheat Commission announced on Wednesday, February 23, 2022, that Alberta Wheat growers who didn’t request a refund of their check-off fees qualify for an SR&ED tax credit for the 2021 tax year at a rate of 31%. For example, growers who paid $1,000 in check off to Alberta Canola in 2021, are eligible for a $310.00 tax credit. 1
The 2021 SR&ED tax credits are also available for producers who paid check-offs into several other agricultural organizations across Canada. Please see our page: SR&ED and Agriculture: Hidden Tax Credits from Levy and Check-Off for additional information on what these organizations are, the current and past SR&ED tax credit rates for each of them, and how to apply for those SR&ED ITCs.
SR&ED Applicable to Agricultural Check-off Dues
The SR&ED tax credit is applicable to 80% of the annual portion of the agricultural producers’ service fees (levy or check-off) which were paid to an approved research entity for carrying out eligible R&D as determined by the CRA. Farmers can calculate their total R&D contribution by referring to their sales receipts, which show the levy or check-off allocation.
Individuals may earn a 15% SR&ED tax credit on their applicable R&D expenditures, and Canadian Controlled Private Corporations (CCPC) may earn up to a 35% SR&ED tax credit on their applicable R&D expenditures. The Canada Revenue Agency’s (CRA) Third-Party Payments Policy details the complete explanation, rules, and regulations of how Agricultural check-off dues may be SR&ED eligible.
Each rate is released separately for the growers’ SR&ED tax credits. For more information on rates and how growers can take advantage of their eligible SR&ED tax credits please see our page: SR&ED and Agriculture: Hidden Tax Credits from Levy and Check-Off
- Wheat farmers can claim 31 percent SR&ED credit on their 2020 taxes. (2022, February 23). Alberta Wheat Commission. Retrieved March 28, 2022, from: https://www.albertawheatbarley.com/alberta-wheat/press-releases/wheat-farmers-can-claim-31-per-cent-sr-ed-credit-on-their-2020-taxes ↩