Western Canada
March 22, 2007
The 2006 tax credit to producers
for the Wheat and Barley Check-off Funds administered by the
Western Grains Research
Foundation is 83 per cent for both the wheat and barley
funds.
In other words, 83 per cent of the check-off dollars paid by
producers on wheat and barley in 2006 is eligible for the
Scientific Research and Experimental Development (SR&ED) tax
credit.
It should be noted that the check-off on barley in Alberta is
not collected by the Western Grains Research Foundation and will
be subject to a different tax credit rate.
Only the amount of a producer check-off spent directly on
research is eligible - amounts spent on administration and
activities such as communication are not. An annual
determination is done for each of the commodities where a
producer check-off is in place.
If a producer contributed $300 to the Wheat and Barley Check-off
in 2006, the tax credit would be 83 per cent of the $300 or
$249.
The tax credit is earned at a rate of 20 per cent for
individuals and 35 per cent for corporate producers that are
Canadian controlled private corporations (CCPC). Therefore, in
this example, an individual producer would earn a tax credit of
$49.80 (20 per cent of $249), while a corporate producer would
earn a tax credit of $87.15 (35 per cent of $249).
Producers can visit the WGRF website at www.westerngrains.com
for more information about the tax credit. The site will provide
a link to the Canadian Revenue Agency website where the
appropriate forms can be obtained and options for tax credit use
are outlined.
See the table for a comparison of the research percentages of
other check-off organizations in Western Canada that are
eligible for tax credit consideration.
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Eligible check-off percentagese for the SR&ED tax credit |
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This
information has been compiled by the WGRF for your
comparative convenience
but is not guaranteed by the WGRF. |
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