Story Posted: February 12, 2010

SR&ED Investment Tax Credit for Registered Canola Producers

The Scientific Research and Experimental Development (SR&ED) Program is a federal government program that encourages research and development by providing tax-based incentives.

By using levy contributions to finance research and development work that benefits Saskatchewan canola producers, SaskCanola is able to participate in this program and distribute these tax-based incentives to producers.

The program gives registered canola producers access to investment tax credits (by means of cash refunds and/or reduction to taxes payable) for their levy contributions that are spent on qualifying research.

For 2009, producers may claim 18% of their levy contributions as a qualifying SR&ED expenditure on their federal tax return.

Investment tax credits may be claimed by filing form T2038(IND) for farm individuals or T2SCH31 for farm corporations. In addition, farm corporations may file T2SCH403 to claim 13% of their levy contributions as a qualifying expenditure towards the Saskatchewan research and development tax credit.

Producers that have requested a refund of their levy do not qualify.

More information about the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program may be obtained from the Canada Revenue Agency:

+ Click here for SR&ED info on the Canada Revenue Agency Website

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