Scientific Research & Experimental Development (SR&ED) Tax Credit

SR&ED

SR & ED

The Scientific Research & Experimental Development (SR&ED) Tax Incentive Program is a federal government program that encourages research and development by providing tax-based incentives.

 

 

Benefits for Saskatchewan Winter Cereal Producers

Growers who contribute winter cereal (winter wheat, triticale, fall rye) levy dollars to the Saskatchewan Winter Cereal Development Commission (SWCDC) are eligible to earn a federal investment tax credit through the SR&ED Tax Incentive Program. The tax credit is based upon on the amount of levy funds spent by SWCDC on research and development (R&D) that meets the criteria set out by the Canada Revenue Agency.

For the crop year ending July 31, 2018 winter cereal producers may claim 25.78% 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 18.91% of their levy contributions as a qualifying expenditure towards the 10% Saskatchewan Research & Development Tax Credit program for research performed in Saskatchewan. This credit can be claimed by filing form T2SCH403.

Producers that have requested a refund of their levy are not eligible for either tax credit.

 

Federal and Provincial Tax Credit Programs

More information about the Scientific Research & Experimental Development (SR&ED) Tax Incentive Program may be obtained from the Canada Revenue Agency

More information about the Saskatchewan Research and Development Tax Credit Program is available from the Government of Saskatchewan.