Source: Alberta Wheat Commission
Wheat farmers who pay the Alberta Wheat Commission (AWC) check-off are eligible for a 31 per cent tax credit through the Scientific Research & Experimental Development Fund (SR&ED) program for their investment in wheat research and development (R&D) projects. For example, farmers who paid $100 in check-off to AWC in 2019 would earn $31 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).
Farm individuals should use form T2038 (IND) to claim this credit when filing their taxes while farm corporations must use form T2SCH31.
For more information, contact the 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.
For more information about claiming the SR&ED credit, please contact:
Syeda Khurram, CFO
Alberta Wheat and Barley Commissions