Wheat and barley producers who pay check-off through Alberta Grains (formerly Alberta Barley and the Alberta Wheat Commission) and do not request a refund are eligible for a 34 per cent and eight per cent tax credit respectively through the Scientific Research and Experimental Development Fund (SR&ED) program for their investment in research and development (R&D) projects. For example, producers who paid $100 in check-off on their wheat in 2023 would earn $34 in tax credit, whereas producers who paid $100 in check-off on their barley in 2023 would earn $8 in tax credit.
The federal SR&ED program encourages R&D investment through tax-based incentives, giving claimants 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 laid out by the Canada Revenue Agency (CRA).
“The SR&ED program is incredibly beneficial, and I would encourage all eligible growers to utilize it,” says Alberta Grains chair, Tara Sawyer. “If you’re a wheat or barley producer in Alberta who pays checkoff, this is an excellent financial incentive to apply to your on-farm operations.”
Farm individuals should use form T2038 (IND) to claim this credit when filing taxes, while farm corporations must use form T2SCH31.