Are farm producers eligible for SR&ED investment tax credits through Agricultural organizations?
Yes – the CRA in co-operation with Agriculture and Agri-Food Canada has developed a process so that farm organizations can participate in the SR&ED program. This process provides for the distribution of investment tax credits to farm producers who contribute to SR&ED through their agricultural organizations. Investments of this kind are often referred to as check-offs, assessments, or levies. They are used by agricultural organizations, in part, to finance research and development work that benefits the individual contributors, as well as the agricultural industry as a whole. Agricultural SR&ED performers should be on the look-out for such payments which may not be clearly flagged as SR&ED expenses. These payments would likely also qualify for an additional 20% fully refundable Ontario Business Research Institute (OBRI) credit, if the appropriate pre-approval forms are filed on a timely basis (i.e. within 90 days of signing the contract.) Please see What are the issues involved with pa
