Research
Scientific Research & Experimental Development (SR&ED) Tax Credit
Farmer members who contributed check-off dollars to Manitoba Crop Alliance (MCA) are eligible to claim a federal tax credit through the Scientific Research and Experimental Development (SR&ED) program. The tax credit is based on the amount of check-off funds invested in research and development that meet specific criteria set out by the Canada Revenue Agency (CRA).
For the 2022-2023 tax year, farmer members can calculate their total check-off contribution by referring to their wheat (spring and winter), barley, corn, flax and sunflower sale receipts. Of those totals, 32.03 per cent of the MCA check-off is eligible to earn an investment tax credit. As an individual, farmer members can claim this tax credit up to a maximum of 15 per cent, while corporations are able to claim up to 35 per cent. 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.
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 you are 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. All check-off investment tax credit applied against taxes payable, or refunded, must be reported by the producer as income in the subsequent year.
For more information on the process of claiming the tax credit, please consult your accountant or 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 from Manitoba Crop Alliance (MCA).
The reported check-off that was deducted from a farmer member’s cash ticket and is eligible for the tax credit for the current and previous years is as follows:
| Crop Type | Fiscal Year | Eligible Amount |
|---|---|---|
| Spring Wheat, Winter Wheat, Barley, Flax, Sunflowers, Corn | Aug. 1, 2022 to July 31, 2023 Aug. 1, 2021 to July 31, 2022 Aug. 1, 2020 to July 31, 2021 |
32.03% 52.07% 34.44% |
| Spring Wheat, Barley | July 1, 2019 to July 31, 2020 July 1, 2018 to June 30, 2019 July 1, 2017 to June 30, 2018 |
18.42% 22% 11% |
| Corn | Jan. 1, 2020 to July 31, 2020 Jan. 1, 2019 to Dec. 31, 2019 Jan. 1, 2018 to Dec. 31, 2018 |
8.43% 25% 25% |
*In previous years, SR&ED tax credits were not calculated on winter wheat, flax, or sunflower crops.