Tax Credits for Flax
Each year, Saskatchewan flax producers contribute check-off dollars to research and development and over the past year have again earned an eligible tax credit on their investment. The Scientific Research and Experimental Development (SR&ED) is a federal tax incentive program to encourage Canadians to conduct research and development in Canada that will lead to new, improved, or technologically advanced products or processes.
For the crop year ending July 31, 2021 the federal SR&ED tax credit for levy-paying flax producers is 50.6%.
For the crop year ending July 31, 2021 the Saskatchewan Provincial SR&ED tax credit for levy-paying flax producers is 45.0%
As producers know, our research projects use producers’ check-off dollars to lever additional monies from industry sponsors and other funding agencies.
This 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 for an overview.