Story Posted: February 04, 2009

Tax Credit for the 2008 Tax Year Open to Saskatchewan Canola Producers

CANOLA GROWERS IN SASKATCHEWAN that do not request a refund of their levy from the Saskatchewan Canola Development Commission (SaskCanola) qualify for a tax credit for the 2008 tax year.

The Scientific Research and Experimental Development (SR&ED) tax credit allows registered canola producers to claim the tax credit for that portion of the levy paid that was used to fund qualifying research.

The rate for Saskatchewan canola producers in 2008 is 18.8 percent. For example, for an individual grower that paid $100 in check off to the SaskCanola in 2008, $18.80 is eligible to earn the tax credit.

The tax credit can:

• offset federal taxes owing in the current year,
• be received as a refund,
• be carried forward up to 10 years to offset federal taxes owing, or
• be carried back 3 years to reduce federal taxes paid in those years.

Individual producers must file a T2038 (IND). Farm corporations must file form T2SCH31. For more information, contact the Canada Revenue Agency or your accountant.

+ Click here for SR&ED info on the Canada Revenue Agency Website

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