It’s true that most farming and agriculture activities are routine and would not normally qualify for the SR&ED tax credit. However, there are cases where SR&ED may be hidden and the activities would indeed be eligible.
When analyzing whether an agricultural activity may qualify for SR&ED tax credits, it’s imperative to remember what the program is about. It all comes down to overcoming technological obstacles and uncertainties. If new knowledge has been discovered along the way, whether or not the project was a success, then those activities have a chance at being approved for the benefits.
A few activities that may be deemed eligible include:
If a farm producer contributes to organizations that fund agriculture R & D purposes, they may be eligible for a SR&ED ITC. The CRA defines agricultural check-off as, “contributions made to agricultural organizations that fund SR&ED”. Possible check-off sectors that have qualified in the past include wheat, barley and canola. To make sure you don’t miss the deadline, be sure to keep up to date with the organization’s website or other publications as they will most likely have an announcement.
The best way to make sure you’re not missing any possible SR&ED eligible activities is to contact a SR&ED consultant that has submitted claims for agriculture companies in the past and can maximize your benefit.