Tax credit for research checkoffs

The federal government annually provides a Scientific Research and Experimental Development (SR&ED) tax credit to producers offering them a tax credit on their checkoff investments.

The tax credit percentage for producers who contributed to the Wheat and Barley Checkoff, administered by the Western Grains Research Foundation in 2012 is 85 per cent for wheat and 86 per cent for barley. It should be noted that the checkoff on barley in Alberta is collected by the Alberta Barley Commission and will be subject to a different tax credit rate.

The percentages above are calculated by looking at the amount of the checkoff dollars spent directly on research and development; this is then determined to be the eligible portion. Each checkoff organization may vary, as they will have their own eligible percentage.

Producers can visit the WGRF website at www.westerngrains.com under the Current Info tab for links to the Canadian Revenue Agency website where the appropriate forms can be obtained and options for tax credit use are outlined.

For more information on claiming your SR&ED tax credit, please consult your accountant. For more information on the SR&ED investment tax credit, visit the Canada Revenue Agency website http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html.

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