Checkoff dollars paid on Manitoba wheat and barley will yield slightly less of a tax credit for eligible farmers this spring.
The Western Grains Research Foundat ion (WGRF), which administers the wheat and barley checkoff, says that the tax credit percentage for farmers who paid into the checkoff fund in 2008 will be 80 per cent for wheat and 82 per cent for barley (down from 82 and 85 per cent respectively for the 2007 tax year).
Manitoba wheat and barley growers can thus claim those percentages of their checkoff payments toward a federal Scientific Research and Experimental Development (SR&ED) tax credit for the 2008 tax year, at a rate of 20 per cent (35 per cent for corporations).
For example, if you’re a farmer who paid $300 in wheat checkoffs in 2008, your el igible amount would be calculated by taking 80 per cent (the wheat percentage) of the $300, or $240. If you file your tax return as an individual, you’d get 20 per cent of that $240, or $48, as a tax credit. Filing as a corporation would get you 35 per cent, or $84.