Growers who contribute pulse check-off dollars to the Saskatchewan Pulse Growers are eligible to earn a federal investment tax credit through the Scientific Research and Experimental Development program. The tax credit is based on the amount of check-off funds spent on research and development that meet specific criteria as set out by Canada Revenue Agency.
For the 2012 tax year, 53 per cent of the Saskatchewan pulse check-off qualifies for the federal SR&ED tax credit.
Growers can calculate their total check-off contribution by referring to their pulse sales receipts, which shows the check-off allocation. Of this total, 53 per cent is eligible to earn an investment tax credit. This resulting check-off amount is eligible to earn an investment tax credit up to a maximum of 20 per cent for individuals and up to a maximum of 35 per cent for corporate growers that are Canadian controlled private corporations.
The 53 per cent is comprised of research performed in the following provinces: Saskatchewan 49 per cent, Alberta 0 per cent, Manitoba 3 per cent, Ontario 1 per cent and Quebec 0 per cent.
To claim the federal tax credit on their tax returns, growers must file a T2038 (IND) for farm proprietorships or a T2SCH31 for farm corporations. Corporations are also eligible for the 15 per cent Saskatchewan R&D tax credit for research performed in Saskatchewan, using Schedule 403 to claim the credit on their tax returns.
All check-off investment tax credit applied against taxes payable or refunded must be reported by the grower as income in the subsequent year.
For more information on the process of claiming the tax credits, please consult your accountant. For information on the federal SR&ED investment tax credit, visit the Canada Revenue Agency website at http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html.
For more information about the SR&ED tax credit for pulse crops, please contact Rachel Kehrig or Delaney Seiferling at Saskatchewan Pulse Growers:
Rachel Kehrig, Director of Communications & Market Promotion, (306) 668-9988, Cell: (306) 230-6488, Email: firstname.lastname@example.org or
Delaney Seiferling, Communications Manager, (306) 668-0116, Cell: (306) 321-7533, Email: email@example.com.