February 23, 2021 – Farmers are entitled to obtain a federal tax credit on canola check-off deductions that are used to support Research & Development. The government allows 80% of the total qualifying research investment to be claimed as eligible for the tax credit.
For the Manitoba Canola Growers Association, only part of our R & D qualifies for the tax credits. Only research that is done by a federally-approved research facility, such as universities and the government agricultural research facilities, qualifies for this tax credit.
The rate for canola research in Manitoba in 2020 is 14.6%.
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 credits earned maybe used as follows:
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 by the Manitoba Canola Growers.
The reported canola check–off that was deducted from a farmer’s cash ticket and is eligible for the tax credit from 2010-2020 is as follows:
2020, 14.6% |
2019, 13.5% | 2018, 13.7% | 2017, 13.5% | 2016, 11.14%. |
2015, 5.66% |
2014, 11.5% | 2013, 9.06% | 2012, 17.71% |
2011, 15.93% |
MCGA is committed to maximizing net income for Canola farmers through sustainable production.
For further information please contact MCGA’s office in Winnipeg at (204)982-2122.