Tax Credit for Eligible Alberta Pulse Growers (PCN Spring 2014) MAY 5 2014 | Consumers and Producers | Pulse Crop News
This article appeared in the Spring 2014 issue of Pulse Crop News.
Pulse growers in Alberta who pay service fees (or levy) to their provincial organization, the Alberta Pulse Growers Commission, are eligible to apply for a 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 business 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. The SR&ED program is the single largest federal tax incentive program that supports business research and development. In 2012, the SR&ED program provided over $3.6 billion in tax assistance to over 23,000 claimants. Pulse growers are advised that investment in research through payment of pulse service fees is eligible for this tax credit.
- Fiscal Year Ended 2012-13: 9.20%
- Fiscal Year Ended 2011-12: 14.00%
- Fiscal Year Ended 2010-11: 21.20%
- Fiscal Year Ended 2009-10: 30.30%
- Fiscal Year Ended 2008-09: 15.00%
- Fiscal Year Ended 2007-08: 13.33%
- Fiscal Year Ended 2006-07: 17.00%
- Fiscal Year Ended 2005-06: 20.00%
- Fiscal Year Ended 2004-05: 25.00%
- Fiscal Year Ended 2003-04: 13.00%
The SR&ED tax credit can be earned on the portion of a producer’s service fee contribution that was paid to an approved research entity, as determined by the Canada Revenue Agency. For the 2012-13 fiscal year 9.20% percent of pulse service fees 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 Revenue Agency website at http://www.cra-arc.gc.ca/txcrdt/sredrsde/menu-eng.html. Individual producers need to apply using the form T2038 (IND) and Canadian controlled private corporations should utilize the form T2SCH31. Individuals have 17.5 months from the end of their fiscal year to apply retroactively. If you have questions related to the SR&ED tax credit please consult an accountant or contact the Canada Revenue Agency.