2023 SR&ED Tax Credits for Alberta Canola Farmers
On February 5, 2024, the Alberta Canola Producers Commission announced that Alberta Canola growers who did not request a refund of their check-off fees qualify for an SR&ED tax credit for the 2023 tax year at a rate of 12.49%
Alberta Canola Growers 2023 SR&ED Tax Credits
The Alberta Canola Producers Commission announced on Tuesday, February 5, 2024, that Alberta Canola growers who didn’t request a refund of their check-off fees qualify for an SR&ED tax credit for the 2023 tax year at a rate of 12.49%. For example, growers who paid $1,000 in check off to Alberta Canola in 2023, are eligible for a $124.90 tax credit. 1
2023 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