2018/19 Scientific Research & Experimental Development (SR&ED) Tax ...

2018/19 Scientific Research & Experimental Development (SR&ED) Tax Credit

Producer News

For the 2018-2019 tax year, 22% of MWBGA’s check-off qualifies for the SR&ED tax credit

The federal Scientific Research & Experimental Development (SR&ED) program encourages research and development (R&D) investment through tax-based incentives. The program gives Manitoba Wheat and Barley Growers Association (MWBGA) members tax credits for their expenditures on eligible R&D work. The tax credit percentage is based on the amount invested in R&D that meets the criteria as determined by the Canada Revenue Agency (CRA).

MWBGA continues to strategically invest, manage and monitor research projects that work to grow the potential of wheat and barley as profitable and sustainable production choices for Manitoba growers. MWBGA’s research priority areas include spring wheat and barley variety development, fusarium management, nitrogen and protein management, excess moisture, rotations considerations and on-farm trials.

Farmers can calculate their total check-off contribution by referring to their wheat and barley sale receipts. Of this total, 22% is eligible to earn an investment tax credit. As an individual, farmers can claim this tax credit up to a maximum of 15% while corporations are able to claim up to 35%. To claim the federal tax credit on your tax returns, you must file a T2038 (IND) for farm proprietorships or a T2SCH31 for farm corporations.

For more information on the process of claiming the tax credit, please visit the Canada Revenue Agency website.

Please note: A farmer may not claim investment tax credits (ITC’s) on any portion of check-off that has been refunded by the Manitoba Wheat and Barley Growers Association.