Investment Tax Credits Available to Canola Growers

Feb 14, 2011 | Corporate Member News

Producers are entitled to obtain taxable benefits on canola check-off deductions that are used to support Research & Development.
Individual producers are entitled to claim investment tax credits at 20% and the corporate producer rate for Canadian Controlled Private Corporations (CCPC) is 35%.
For the Manitoba Canola Growers Association, only part of our R & D qualifies for the tax credits.  This is because research that is not done by an approved research facility does not qualify.  Universities and the government agricultural research facilities are considered approved facilities. For 2010 the rate is 11.65% of MCGA’s research funding will qualify for the tax credit.  The 2009 rate was 10.74%, 2008 rate was 11.27%, the 2007 rate was 23.087%, 2006 rate was 24.67% and the 2005 rate was 18.72%.  The 2004 rate was 23%, the 2003 rate was 36%, the 2002 rate was 22% and the 2001 was 27%.
The following is an example of what a producer could claim:

In 2010, a producer has contributed $200 to the canola check-off program.  That means that $23.30 of these check-off dollars was invested into eligible R & D ($200 at 11.65%).

  • Individual producers would be entitled to claim $4.66 as their investment tax credit amount ($23.30 at 20%).
  • Corporate producers would be entitled to claim $8.16 as their investment tax credit amount ($23.30 at 35%).

The investment tax credits earned maybe used as follows:

  • Offset federal taxes owing in the current year;
  • If no taxes are owing, a portion may be refunded to you in the year if you are an individual or all of the credit may be refunded if you are a corporation;
  • Carried forward up to 10 years to offset federal taxes;
  • Carried back up to 3 years to reduce federal tax paid in those years.
    MCGA is a member organization committed to maximizing net income from canola.
    For further information please contact MCGA’s office in Winnipeg at (204)982-2120.

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