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 payments to universities or other research institutes in Ontario? for more information on the OBRI credit.