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Alberta Pulse Growers members eligible for tax credit MAR 1 2013 | Producers | News Release

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 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%