Research check-off dollars may qualify farmers for federal SR&ED tax credit

"For agricultural producers, this can include the portion of check-off or levy contributions paid to commodity organizations that is directed toward eligible SR&ED research projects. Commodity groups typically calculate the share of check-off dollars that went toward eligible research during the year and report that percentage to producers. That eligible portion can then be claimed as an investment tax credit when filing income taxes."

"For example, Alberta Grains says wheat and barley producers who paid check-off in 2025 and did not request a refund may claim a 26 per cent tax credit on their eligible contribution. A producer who paid $100 in check-off would therefore qualify for a $26 tax credit."

"Individual producers claim the credit using form T2038 (IND), while farm corporations must use form T2SCH31. Producers who requested a refund of their check-off are not eligible to claim the SR&ED credit on those amounts."

The Scientific Research and Experimental Development (SR&ED) tax incentive program, administered by the Canada Revenue Agency, encourages investment in research and development by offering tax credits for eligible work conducted in Canada. Agricultural producers who pay commodity check-off or levy dollars supporting research may qualify for these credits. Commodity organizations calculate the portion of check-off contributions directed toward eligible SR&ED research and report this percentage to producers. Eligible amounts can be claimed as investment tax credits on income tax returns. For example, wheat and barley producers in Alberta can claim a 26 percent tax credit on their check-off contributions. Individual producers use form T2038 (IND) while farm corporations use form T2SCH31 to claim credits. Producers who requested refunds are ineligible.

Read at Realagriculture