SR&ED

What is the SR&ED?

The Scientific Research and Experimental Development (SR&ED) Program is a federal government program which aims to encourages research and development by providing tax-based incentives.

By using producer check-off contributions to finance research and development work that benefits Saskatchewan barley producers, SaskBarley is able to participate in this program and distribute these tax-based incentives to producers.

The program gives registered barley producers access to investment tax credits (by means of cash refunds and/or reduction to taxes payable) for their check-off contributions that are spent on qualifying research.

2020 rates

For the crop year ending July 31, 2020, producers may claim 22.7% of their levy contributions as a qualifying SR&ED expenditure on their federal tax return.

Investment tax credits may be claimed by filing form T2038 (IND) for farm individuals or T2SCH31 for farm corporations.

In addition, farm corporations may also claim 12.7% of their levy contributions as a qualifying expenditure towards the Saskatchewan Research and Development Tax Credit program. This credit may be claimed by filing form T2SCH403.

Producers that have requested a refund of their levy are not eligible for either tax credit.

More information about the SR&ED

Federal Government SR&ED Tax Incentive Program

Provincial Government SR&ED Tax Incentive Program

For information on the SR&ED tax credit for other Saskatchewan crops, please visit the websites of the respective groups.

2019 rates

For the 2018 crop year (August 1, 2018 to July 31, 2019), producers were able to claim 7.97% of their check-off contributions as a qualifying SR&ED expenditure on their federal tax return.