OTTAWA (Commodity Online): The pulses producers in Saskatchewan are eligible to claim 45% check-off contributions for tax credits through the Scientific Research and Experimental Development (SR&ED).
The tax credit is based on the amount of check-off funds spent on research and development that meet specific criteria as set out by Canada Revenue Agency.
Producers can calculate their total check-off contribution by referring to their pulse sales receipts, which shows the check-off allocation.
This resulting check-off amount is eligible to earn an investment tax credit up to a maximum of 20% for individuals and up to a maximum of 35% for corporate producers that are Canadian controlled private corporations.
The 45% is comprised of research performed in the following provinces: Saskatchewan 41%, Alberta 1%, Manitoba 1%, Ontario 1% and Quebec 0%.
All check-off investment tax credit applied against taxes payable or refunded must be reported by the producer as income in the subsequent year.
Corporations are also eligible for the 15% Saskatchewan R&D tax credit for research performed in Saskatchewan.
