Producers can apply for taxable benefits on canola check-off deductions that are used to support research and development.
For 2012, individual producers can claim investment tax credits at 20 percent and corporate producers can claim 35 percent.
Only part of the Manitoba Canola Growers Association’s research and development qualifies for the tax credits because research must be done at an approved research facility to qualify.
Approved facilities include universities and government agricultural research facilities.
As an example of what can be claimed, let’s say a producer contributes $200 to the canola check-off program in 2011, which means that $31.86 of the check-off money was invested into eligible research and development ($200 at 15.93 percent).
Read Also
Cattle smuggling worsens outbreak in Mexico
Cattle being smuggled across Mexio’s southern border are making a screworm outbreak much more difficult to control.
- individual producers would be entitled to claim $6.37 as their investment tax credit amount ($31.86 at 20 percent)
- corporate producers would be entitled to claim $11.15 as their investment tax credit amount ($31.86 at 35 percent)
The investment tax credits earned may be used as follows:
- offset federal taxes owing in the current year
- if no taxes are owing, a portion may be refunded if you are an individual and 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 three years to reduce federal tax paid in those years
