January 19, 2009 (Saskatoon, SK) Saskatchewan flax producers invest their check-off dollars in scientific research and development, and this year have again earned an eligible tax credit on their investment.

For the 2008 tax year, the Scientific Research and Experimental Development (SR&ED) tax credit is available to producers at a rate of 3.4%.

“The rate is somewhat lower than other years,” says Linda Braun, SaskFlax Executive Director. “This is because we directly supported only two research projects this year (Winter Flax Nursery and Enhancing Field Retting). Our other levy dollars were used to lever support for market facilitation initiatives for food and fiber from national partnership initiatives such as Flax Canada 2015 and the Natural Fibres for the Green Economy Network (NAFGEN), which are not eligible for SR & ED credits.”

The SR&ED tax credit may be used to offset federal tax carried back up to three years or, if no taxes are owing, may be refunded.

For more information on this tax credit, consult your accountant or go to the Canada Revenue Agency website at: www.cra-arc.gc.ca/sred.

For more information, contact:

Canada Revenue Agency
www.cra-arc.gc.ca/sred