Story Posted: January 20, 2012

2011 Investment Tax Credit Available to Registered Producers

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 2011, producers may claim 25.3% 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 also claim 17.8% of their levy contributions as a qualifying expenditure towards the Saskatchewan Research and Development Tax Credit program. This credit may be claimed by filing form T2SCH403.

Producers that have requested a refund of their levy are not eligible for either tax credit.

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

More information about the Saskatchewan Research and Development Tax Credit is available from the Government of Saskatchewan:

+ Click here for SR&ED info on the Government of Saskatchewan website

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