2021 SR&ED Tax Credits for Saskatchewan Wheat Farmers

2021 SR&ED Tax Credits for Saskatchewan Wheat Farmers
2021 SR&ED Tax Credits for Saskatchewan Wheat Farmers

The Saskatchewan Wheat Development Commission announced that Saskatchewan 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 69.93%. In addition, 48.97% of their levy contributions may be claimed as a qualifying expenditure towards the Saskatchewan Research and Development Tax Credit program.

Saskatchewan Wheat Growers 2021 SR&ED Tax Credits

The Saskatchewan Wheat Development Commission announced that Saskatchewan 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 69.93%. In addition, 48.97% of their levy contributions may be claimed as a qualifying expenditure towards the Saskatchewan Research and Development Tax Credit program. For example, growers who paid $1,000 in check off to Alberta Canola in 2021, are eligible for a $699.30 in federal tax credit and $489.70 in provincial tax credit. 1

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.

Conclusion

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

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Show 1 footnote

  1. SR&ED Investment Tax Credit Info. Saskatchewan Wheat Development Commission. Retrieved March 15, 2022, from: https://saskwheat.ca/sred-investment-tax-credit-info

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