Manitoba Pulse & Soybean Growers (MPSG) would like to advise its farmers that 48.42% of their check-off investment is eligible for the Scientific Research & Experimental Development (SR& ED) tax credit.
This percentage reflects the amount of MPSG research and development dollars that meet specific criteria established by the Canada Revenue Agency (CRA).
To claim the federal tax credit on your tax returns, sole proprietorships must file a T2038 (IND) and farm corporations a T2SCH31. Farmers can calculate their total check-off investment by referring to their pulse and soybean sales receipts. Of this total, 48.42% is eligible for the investment tax credit.
Farms operating as sole proprietorships can claim this tax credit up to a maximum of 15% while corporations are able to claim at the rate of 35%.
Please click on the following links to view samples illustrating how the tax credit is calculated and how each form needs to be filled out:
Sole proprietorship tax credit sample
Corporation tax credit sample
The investment tax credit earned may be used to offset federal tax owing in the current year. Or, if you do not owe federal tax in the current year, a portion may be refunded to you as an individual or all may be refunded if your farm is a corporation (CCPC). Other options include carrying the credit forward up to 10 years to offset federal tax or carried back up to three years.
The total check-off investment tax credit applied against taxes payable or refunded must be reported by the farmers as income in the subsequent year.
For more information on the process of claiming the tax credit, please consult your accountant, MPSG or visit the Canada Revenue Agency website.
Farmers may not claim investment tax credits (ITCs) on any portion of check-off that has been refunded by the Manitoba Pulse & Soybean Growers.
The reported pulse check–off that was deducted from a farmer’s cash ticket and is eligible for the tax credit from 2001-2017 is as follows:
- 2017: 48.42%
- 2016: 26%
- 2015: 30%
- 2014: 30.5%
- 2013: 17.1%
- 2012: 29.74%
- 2011: 22.28%
- 2010: 29.26%
- 2009: 27.8%
- 2008: 16.4%
- 2007: 22.8%
- 2006: 54.0%
- 2005: 56.8%
- 2004: 32.8%
- 2003: 22.28%
- 2002: 29.95%
- 2001: 25.8%
Source : ManitobaPulse