Research Tax Credit
Canola producers who paid levy to SaskCanola and did not request a refund are eligible for a tax credit through the Scientific Research and Experimental Development (SR&ED) program for their investment in SaskCanola funded research and development (R&D) projects.
For the 2019 tax year, 36% of producers' levy is eligible for the federal SR&ED tax credit (by means of cash refunds and/or reduction to taxes payable). The tax credit percentage is based on the dollar amount SaskCanola has invested in R&D that meets the criteria laid out by the Canada Revenue Agency (CRA).
The program gives registered canola producers access to investment tax credits (by means of cash refunds and/or reduction to taxes payable) for their levy contributions that are spent on qualifying research.
For 2019, producers may claim 36% of their levy contributions as a qualifying SR&ED expenditure on their federal tax return.
Investment tax credits may be claimed by filing form T2038(IND) for farm individuals or T2SCH31 for farm corporations.
In addition, farm corporations may also claim 23% of their levy contributions as a qualifying expenditure towards the Saskatchewan Research and Development Tax Credit program.
This credit may be claimed by filing form T2SCH403.
Producers that have requested a refund of their levy are not eligible for either tax credit.
Click here for more information about the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program that may be obtained from the Canada Revenue Agency.
Click here for more information about the Saskatchewan Research and Development Tax Credit available from the Government of Saskatchewan.