The Agri-Innovation Program is an initiative from Agriculture and Agri-Food Canada (AAFC). As part of this program, pre-commercialization research, development and knowledge transfer leading to innovative agriculture, agri-food and agri-based practices, processes, and products are supported. The Agri-Science Cluster is also part of this program, addressing several themes that are priorities to the industry and would request support toward several research activities across the country.

The Alberta Pulse Growers Commission has been an active participant in the Pulse Science Cluster 1 (2010 – 2013) under AAFC’s Growing Forward and is currently participating in the Pulse Science Cluster 2 (2013-2018) under AAFC’s Growing Forward 2. Pulse producers in Alberta, Ontario, Manitoba, and Saskatchewan currently fund a significant portion of the pulse research into genetic improvement, agronomy and sustainable production, as well as end-use processing and utilization to advance value-added applications for pulses in existing and new markets.

There is a continued need to increase the scope of pulse research and address the gaps that have been identified as standing in the way of continued market growth in this sector. The opportunity to leverage our industry funding with government funds will allow the pulse sector to address many of these knowledge gaps in these science Clusters over the next five years.

Success of Pulse Science Cluster 2

The Pulse Science Cluster 2 has 4 priority areas and has investments in 30 projects.

• Genetic Improvement (14 projects: $8,406,856)
• Agronomic Improvement (7 projects: $3,436,512)
• Pulse Processing and Utilization (4 projects: $1,694,304)
• Human Health Outcomes (5 projects: $3,567,869)

The $15 million of government investment is matched with $5.17 million of pulse industry funding. Industry investment is primarily from producer service fees and is invested in partnership with pulse grower organizations in Saskatchewan, Manitoba and Ontario. APG has invested over $803,000, leveraging grower funding in Cluster 2 activities that will benefit the pulse industry in Alberta, and nationally, across the sector in the identified priority areas.

Funding for this activity has been provided by Agriculture and Agri‐Food Canada through the Agri-Innovation Program.

The Alberta Pulse Growers Commission (APG) investments in research using service fees (levy or check-off) are eligible for the Scientific Research and Experimental Design (SR&ED) Tax Credit. Pulse growers who pay service fees to the organization and who do not request refunds are eligible to receive this credit.

The SR&ED tax credit can be earned on the portion of the producers’ service fees which were paid to an approved research entity as determined by the Canada Revenue Agency. Each year a percentage of the Alberta Pulse Growers investment into research is calculated for the percent eligible for that tax year.

Below are the per cent reported pulse service fees that were deducted from a producers’ cash ticket in each fiscal year and are eligible for the SR&ED credit.

• 2015–16*: 21.00%
• 2014–15*: 18.5%
• 2013–14*: 17.5%
• 2012–13*: 9.20%
• 2011–12: 14.00%
• 2010–11: 21.20%
• 2009–10: 30.30%
• 2008–09: 15.00%
• 2007–08: 13.33%
• 2006–07: 17.00%
• 2005–06: 20.00%
• 2004–05: 25.00%
• 2003–04: 13.00%

*Legislative Changes have reduced the pool of deductible to claim 80% of third party payments as of Dec 12, 2013.

The SR&ED tax credit application form can be downloaded directly from the Canada Revenue Agency website. Individual producers need to apply using the form T2038 (IND), and Canadian controlled private corporations should utilize the form T2SCH31.

For more detailed information about the SR&ED Tax Credit, APG advises you to contact an accountant or the Canada Revenue Agency. For specific information about the per cent amount on pulse research investment, please contact us.