Pulse producers in Alberta who pay levy to Alberta Pulse Growers are eligible to apply for tax credit from the Government of Canada.
The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. Pulse growers are advised that investment in research through the pulse check-off is eligible for this tax credit.
The Scientific Research and Experimental Development (SR&ED) tax credit can be earned on the portion of a producer’s check-off contribution that was paid to an approved research entity, as determined by the Canada Revenue Agency. In 2011-12, 14 per cent of pulse check-off funds that were deducted from a producer’s cash ticket are eligible for the tax credit. Producers are eligible to claim up to a maximum of 20 per cent for non-incorporated farm operations and up to a maximum of 35 per cent for incorporated operations of the determined percentage.
The SR&ED tax credit application form can be downloaded directly from the Canada Customs and Revenue Agency website at www.ccra.gc.ca/sred. Individual producers need to apply using the form T2038 (IND) and Canadian controlled private corporations should utilize the form T2 SCH 31.
The per cent of pulse check-off funds eligible for the past 10 fiscal years are as follows:
- 2002–03: 37.5%
- 2003–04: 13%
- 2004–05: 25%
- 2005–06: 20%
- 2006–07: 17%
- 2007–08: 13.33%
- 2008–09: 15%
- 2009–10: 30.3%
- 2010–11: 21.2%
- 2011–12: 14%