The Alberta Pulse Growers Commission (APG) investments in research using service fees (levy or check-off) are eligible for the Scientific Research and Experimental Development (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.

Producers are eligible to claim up to a maximum of 15% for non-incorporated farm operations and up to a maximum of 35% for incorporated operations of the determined gross amount.

*Legislative Changes have reduced the pool of deductible to claim 80% of third party payments as of Dec 12, 2013. That gross amount placed on Part 3 on schedule 31 for the producer will result in the reduced net amount.

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.