We want you to have access to all the benefits of being a member of Manitoba Pulse & Soybean Growers (MPSG). Not only do your investment dollars go towards the production of materials aimed at ensuring you are able to grow the best pulse and soybean crops possible, but they also go towards helping your farm’s bottom line by way of tax incentives.
MPSG asked accountant Alexander George of George & Associates, Chartered Professional Accountants Inc., to comment on the Government of Canada’s Scientific Research and Experimental Development (SR&ED) tax incentive program.
Here is what he had to say about your investment dollars:
From a taxation standpoint, it’s not very often that the Canada Revenue Agency is accommodating enough to allow for a double- dip. The double-dip is a special treat, where the taxpayer gets to claim the expenses as a deduction and also claim a rebate. Luckily for farmers, the research dollars spent by the grower organizations qualify for this treatment.
When a farmer contributes to a grower organization by way of check-off that is not refunded, a portion of that check-off is used to fund research and development. This research portion qualifies as a refundable rebate on the farmer’s tax return, while at the same time the entire check-off qualifies as an expense.
Add to the fact that the research knowledge gained is available to the farmer free of charge, makes the entire contribution a win all around. I could only imagine if all the research was privately funded, every crop input bill would be doubled on top of an extra fee for research.
Combining the tax savings and the research knowledge gained, in my opinion, the check-off contribution is worth the investment. If you want to start claiming these rebates, just provide your accountant with:
- Check-off paid per grower association
- The association’s research rate for the year (found on the association’s website)
See the example below: