Wheat and barley producers who pay check-off through Alberta Grains (formerly Alberta Barley and the Alberta Wheat Commission) and do not request a refund are eligible for a 34 per cent and eight per cent tax credit respectively through the Scientific Research and Experimental Development Fund (SR&ED) program for their investment in research and development (R&D) projects. For example, producers who paid $100 in check-off on their wheat in 2023 would earn $34 in tax credit, whereas producers who paid $100 in check-off on their barley in 2023 would earn $8 in tax credit.
The federal SR&ED program encourages R&D investment through tax-based incentives, giving claimants tax credits for their expenditures on eligible R&D work. The tax credit percentage is based on the amount invested in R&D that meets the criteria laid out by the Canada Revenue Agency (CRA).
“The SR&ED program is incredibly beneficial, and I would encourage all eligible growers to utilize it,” says Alberta Grains chair, Tara Sawyer. “If you’re a wheat or barley producer in Alberta who pays checkoff, this is an excellent financial incentive to apply to your on-farm operations.”
Farm individuals should use form T2038 (IND) to claim this credit when filing taxes, while farm corporations must use form T2SCH31.
For more information, contact your account,Canada Revenue Agency directly, or visit the CRA website.
Producers who have requested a refund of their check-off are not eligible for the tax credit.
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